Strong 2006 lays the ground for increased competitiveness

President and CEO Erik Olsson comments:
Posten is performing well. Once again, we are delivering strong earnings that surpass our financial goals. We have reached operating earnings of SEK 1,442m for the full year, despite costs of SEK 617m for Posten's restructuring and transition to a new operational structure in the fourth quarter. These will result in annual cost reductions of SEK 300m, fully effective by 2008, thus reinforcing our long-term competitiveness.  

The acquisition of Strålfors together with a robust economy and our intensified sales efforts have resulted in Posten setting a sales record for 2006. Both Posten's logistics and direct marketing services have grown by 8 percent each.  

The expanding market for information logistics services is a key growth area for Posten. During the year, Strålfors grew by a full 20 percent in this area. Earnings for Strålfors have also been weighed down by structural costs that will strengthen the company's competitiveness in the face of future challenges. In order to take advantage of the identified synergies, Posten and Strålfors are merging their printing operations in Sweden. 

Posten's end-to-end solutions for the growing distance trade have, together with the upswing in the economy, softened the fall in mail volumes. This has maintained the income level from Messaging, Posten's largest business area, keeping it the same as last year.  

With our new and more specialized operational structure as a base, Posten will continue to make our customers' messaging and goods flows more effective while also offering unique receiver relations with all of Sweden's households and businesses.  

Posten is entering 2007 with excellent chances for further expansion and an even sharper competitive edge.  

Please direct any questions :
Posten's Press Office, tel: + 46 (0)8-23 10 10      

Posten connects people and organizations around the world by delivering mail promptly, reliably and cost-effectively. We drive value creation by combining conventional postal services and convenient electronic solutions, and integrating these services into customer businesses. With over 4,000 retail service outlets, we provide daily service to 4.5 million homes and 900,000 businesses in Sweden. Every day we handle close to 20 million pieces of mail. With sales of nearly SEK 30  billion and roughly 30,000 employees, the group is one of the largest in Sweden. The group's parent, Posten AB (publ), is wholly owned by the Swedish Government. For more information, please visit our website at www.posten.se