News Release

Purolator announces new pricing structure

Purolator will introduce a revised pricing structure effective January 1, 2006 in an effort to provide more competitive shipping and distribution options for domestic customers.

As part of a multi-year strategy to rationalize pricing, the revised structure will be more closely aligned with Purolator’s transportation costs. Rates will be determined by the destination, weight and type of domestic service customers request. The process to implement the new structure will continue over the next three years to better align Purolator’s pricing with its industry-leading services while supporting on-going service enhancements and product innovation.

“Purolator is moving toward a distance-based pricing philosophy, which is a common industry practice,” said Brian Meagher, Senior Vice President, Sales, Marketing and Customer Service. “It is aligned with the costs of providing the services our customers want, at a local, regional, and national level. Our customers will continue to experience a rate structure that is both competitive and reflects Purolator’s unique value in the marketplace.”

Purolator is also introducing standardized pricing for contract customers to reflect the unique value Purolator delivers. Purolator will continue to offer a wide range of value-added services such as rural and beyond point delivery, collect payment options and special handling. As part of the standardized pricing initiative, these elements will not be built into base prices, but identified separately to reflect the associated incremental cost of each service.

The net impact of the rate change will be an average of 3.5 per cent on domestic shipments, but will vary by region as Purolator increases structural pricing consistency more closely aligned with costs. In particular, the average increase in Western Canada will be higher to reflect additional cost pressures. The rate increase supports Purolator’s continued commitment to providing integrated distribution solutions and service to more places in Canada than any other courier company.

The new rates apply to packages which are picked up by Purolator or dropped off at Purolator Retail Centres, Drop Boxes or Authorized Shipping Agents.