MALTAPOST AND TRANSEND SIGN MANAGEMENT AND EQUITY CONTRACTS - WORLD’S FIRST EQUITY DEAL BETWEEN STATE-OWNED POSTAL COMPANIES

Maltapost plc and Transend Worldwide Limited a subsidiary of New Zealand Post announced today they have signed a two year management services contract for the management and operations of Maltapost.

In a separate agreement, Transend has taken a 35 percent equity stake in Maltapost through the purchase of 980,000 shares. Malta Government Investments holds the remaining 65 percent share. This is believed to be the world’s first equity deal of its kind, whereby a state-owned postal business has directly invested in another.

Speaking at a press conference held at the Ministry of Economic Service Parliamentary Secretary Dr George Hyzler said that "we are proud to be associated with a major player in the world’s postal industry. This agreement augurs well for the future of Maltapost in its efforts to compete in an international scenario. It is also coincides with government’s commitment to make Malta a hub in the services sector."

Dr Hyzler added that, "through our strategic partnership with Transcend Worldwide Ltd, Maltapost will have the necessary expertise to penetrate into new areas of operation as well as, the right infrastructure to compete in new and emerging markets."

Mr Frank Dimech, Chairman, Maltapost, said that, "a fundamental aspect of this deal was to establish a commercial relationship with a company prepared to demonstrate true commitment through an equity investment in our business".

"Maltapost is a successful organisation with aggressive expansion targets. We have plans to increase our customer commitment and introduce new products and services, as well as expand into other new business opportunities."

"Transend share the same commercial focus and has both the cultural fit and international business expertise to help us realise these ambitions. They are committed to our business and have demonstrated this through their equity investment."

Mr Dimech added that the agreement will come into effect immediately. Company officials who have visited Malta during the negotiations were impressed with Maltapost employees in order to modernise and expand the business. Through this partnership key elements will include the improvement of mail processing, developing retail and point of sale systems and establishing commercial arrangements in North Africa and the Middle East.

Transend showed interest to enter into a management contract and equity stake in September 2001, following initial consultancy work undertaken in May 2001.

Notes to editors:

Maltapost plc

Maltapost is the state provider of postal services in Malta. On 1 May 1998, Maltapost, a public limited company incorporated in April 1998, took over the operation of the former Post Department through a license by the Post Master General to operate the postal services monopoly.

Maltapost reported a profit of Lm 0.20 million (before extraordinary items) for the 12 months to September 2001 on turnover of Lm 6.8 million.

Transend Worldwide Ltd

Transend is one of the world’s leading postal consultancies and a wholly owned subsidiary of New Zealand Post.

Transend reported a net profit after tax of NZ$14.1 million on revenue of NZ$180 million.

Transend has projects in around 20 countries including a five-year management contract in Trinidad and Tobago, which was recently recognised by the World Bank and Universal Postal Union as setting an example for others to follow.

N.B 1 Lm = $NZ5.42