Response to Consignia Claim

Hays PLC 4 July 2001 HAYS' RESPONSE TO CLAIM FROM CONSIGNIA ====================================== Consignia has issued legal proceedings against Hays plc seeking remedies for alleged breach of Section 6 of the Postal Services Act 2000. It is claimed that certain services provided by Hays infringe Consignia's de facto postal monopoly. The services in question relate mainly to the delivery of tickets, itineraries and invoices, between travel companies and their respective branches and agents. Hays will vigorously defend the proceedings which Consignia want heard by the Court on Friday 6 July. Hays refutes the Consignia claim that these services are covered by Consignia's de facto postal monopoly. Hays has also applied for licences under the new postal regime and it is expected that a decision on the grant of these licences will be announced by the early autumn. The grant to Hays of such licences would put the legal position beyond doubt. The claim made by Consignia affects only a small proportion of Hays' existing mail business; approximately £10 million of annualised turnover is involved. The long-standing Document Exchange (DX) service is not affected. Neil Tregarthen, Managing Director at Hays Mail & Express Services, commented: 'Hays' priority is to provide customers with the best and most cost effective service bringing greater competition, innovation and choice to the marketplace. Hays believes that Consignia's attempts through the Court to stop such services are anti- competitive, against the interests of the business community and contrary to the spirit of both UK and European legislation which is seeking to promote competition. 'As we enter the summer holiday season travel companies need to be confident of being able to deliver tickets to their customers. If Consignia was able to satisfy these basic requirements there would not be such a high demand for our services from travel companies. 'The services in question have been provided by Hays and its predecessors for many years. It is noteworthy that the action is being brought by Consignia, not by the Postal Services Commission, which has direct responsibility for policing the Postal Services Act. Hays believes it is both sensible and reasonable, in the interests of its customers, to continue the activities pending a decision from the Commission on its licence applications. Hays believes that the legal action Consignia has taken at this stage of the licence application process is an opportunistic attempt to force us to concede business to Consignia ahead of the grant of licences.' Enquiries: Graham Williams, Executive Director, Hays plc 01483 302 203 Jon Coles, Brunswick 020 7404 5959

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