Supervisory Board Approves New DB Group Structure

Business units report directly to Management Board • Bensel replaces Malmström as head of Transport & Logistics • Margret Suckale in charge of Personnel • Heinisch heads new Integrated Rail System division • Garber head of Infrastructure & Services

(Berlin, 16 March 2005) Today’s meeting of the Supervisory Board of Deutsche Bahn AGunanimously approved the planned changes in the corporate and management structure of the DB Group. The new organizational form will eliminate a management level, which currently is positioned between the Group management and the operating business units. In future, the business units will report directly to the Group Management Board. Commenting on the new structure, CEO and Chairman of the Management Board Hartmut Mehdorn stated, “We want to become faster and more effective. Direct lines of decision and a lean organization are essential for attractive offerings to our customers and thus crucial for our economic success."

In future, the operating business units will be concentrated in only three Group divisions: Passenger Transport, Transport and Logistics and the new Infrastructure and Services division, which will combine the former Group Track Infrastructure, Passenger Stations, and Services divisions, and also include DB ProjektBau (project construction) as a service function. This move is aimed at improving the coordination of projects in terms of financing, planning, and construction. In the absence of the former sub-holdings, the business units (e.g. Long-distance Passenger Transport, Regio [local passenger transport], Schenker [logistics], Railion [rail freight transport]) will now report directly to the Group Management Board. The business units will remain responsible for their performance and will retain the power of decision necessary for the management and development of operating business. All their previous functional resources will remain untouched.

This reorganization of the Group structure is in conformance with the provisions of the Deutsche Bahn Foundation Act, German Companies Act and the relevant EU Directives. The independence of DB Netz AG in terms of train path pricing and train path allocation will also be taken into account in the revised management structure after the re-enactment of the General Railway Act comes into force.

In order to ensure ongoing improvements in the efficiency and the attractiveness for customers of the overall rail system, and to exploit synergies across all business units, a new Board division entitled “Integrated Rail System” will also be set up. It will be responsible for the functions of technology and purchasing, environmental protection, quality management, and the representation of Deutsche Bahn on international bodies.

This new Board division will be headed by Roland Heinisch (62)who has held various positions with Deutsche Bahn since 1970, amongst other things in the sectors of freight transport strategy, corporate planning and corporate development, and as member of the Management Board for the sectors of research and technology, freight transport and traction. As a member of the Group Management Board, Heinisch has been responsible for Track Infrastructure since 2000 and will still retain his joint function as CEO and Chairman of the Management Board of DB Netz AG.

New head of the Transport and Logistics Board division will be Dr. Norbert Bensel (57), who has been in charge of the Board Personnel division at Deutsche Bahn AG since 2002, formerly holder of various senior executive positions with Schering AG, DaimlerChrysler Services AG, Dasa AG and with R&V Versicherung AG. Dr. Bensel succeeds Dr. Bernd Malmström, who has resigned from the Management Board, but will continue to act as consultant for the Group.

New Member of the Management Board in charge of Personnel will be Margret Suckale (48). She has been with Deutsche Bahn since 1997 and was latterly in charge of Corporate Staff and Legal Affairs. Margret Suckale was previously employed by Mobil Oil Austria AG, where she was in charge of industrial relations and personnel, and was subsequently responsible for the personnel sector for Northern Europe and international projects at Mobil Europe.

The new Group Infrastructure and Services division will be led by Stefan Garber (50). He has worked with the DB Group for five years, initially as head of Corporate Staff, then as Member of the Management Board in charge of Personnel at DB Netz AG,  Head of Purchasing (general manager vested with full power of representation) and latterly as Head of Technology and Procurement (general manager vested with full power of representation). A qualified lawyer, Garber’s former employers include Heidelberger Druckmaschinen AG, Metal Mining Corporation in Toronto and Metallgesellschaft AG.

The new Head of Technology and Procurement (general manager vested with full power of representation) will be Dr. André Zeug  (49). He joined the DB Group in 1994, first held executive positions in the freight transport sector, was then head of corporate development, and finally member of the Management Board of the former DB Cargo AG. Zeug was latterly member of the Management Board responsible for the “Intermodal” division at Stinnes AG.

Dr. Karl-Friedrich Rausch (53) has been re-appointed as a Member of the Group Management Board for a further five years and retains responsibility for the Group Passenger Transport division. Rausch has been a member of the Management Board since 2001, before which he served on the Management Board of Deutsche Lufthansa AG.

The new corporate and management structure of the DB Group will come into effect on March 17, 2005, initially in the form of project organization. The required steps for its further implementation will be effective by autumn.