DHL Corporation and Subsidiaries - Page 32

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          to the DHLI corporate entities as a “network fee”.  Although DHL            
          was DHLI’s pickup and delivery agent in the United States and               
          vice versa, neither paid a fee to the other, and each was allowed           
          to retain the full amount charged to the initiating customer                
          until 1987.                                                                 
               The only exception to this reciprocal arrangement was the              
          on-forwarding fee that DHLI charged to DHL through the 1986 year            
          for some 10 destinations in the Middle East and Southeast Asia              
          because of the great distances from the entry gateways to those             
          destinations.  The reciprocal no-fee arrangement was allowed to             
          exist during the 1970’s and until 1986.  No specific method had             
          been developed to account for each shipment during that time.               
               As of 1992, the DHL network extended to approximately 195              
          countries.  In each of those countries (other than the United               
          States), pickup and delivery functions were performed either by a           
          local operating company that was a corporate affiliate of DHLI or           
          MNV, or by an independent agent.  Most of the local operating               
          companies were subsidiaries of MNV.  Thus, MNV (through its                 
          subsidiaries) provided pickup and delivery services in many                 
          countries, while DHLI operated the network that linked those                
          countries together.                                                         
               As of 1988 the DHL network was, internationally, the third             
          largest air courier company, with a global market share of about            
          8 percent, of which somewhat less than 40 percent arose from                

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