KarstadtQuelle Mail Order to become PRIMONDO

Karstadt - March, 2007

Holding company for leading European mail order brands
Renaming is part of the reorientation
Started March 1, headquartered in Essen

The future of mail order operations within KarstadtQuelle AG will receive a new management structure that meets the challenges of the future – and a new name. Starting March 1, 2007, the previous mail order group operates under the name of Primondo. Primondo, as a holding company, will bundle the leading European mail order brands in both the universal and specialty sectors and, as part of a modern mail order strategy, orient them towards profitable growth.

Marc Sommer

“Primondo's mission is to shape the modern mail order business in Europe as an innovator in a leadership position. As a part of this, we are positioning our brands for further expanding electronic distribution channels, extending specialty mail order operations and the dynamically increasing importance of the growth markets in Central Europe and Russia”, explains Marc Sommer, a member of the KarstadtQuelle AG Board of Management and CEO of Primondo.

Primondo combines the leading European mail order brand Quelle and numerous renowned specialty mail order brands in over 20 countries, employing more than 20,000 staff. Primondo will be managed from a lean Corporate Center headquartered in Essen, as well as by the decentralized managerial heads of Quelle and the specialty mail order operations (Primondo Specialty Group). As it is the name of the umbrella company, Primondo will not appear to the end customer. Branding of the trusted mail order brands will be further strengthened with customers.

“With the distinctive profile of the holding company, Primondo should evoke confidence among our managers and employees in the future of the mail order operations within KarstadtQuelle AG. For the first time, the interested general public also now has a clear focal point for everything concerning the mail order business”, notes Gerd Koslowski, head of Primondo Corporate Communications.

The new structure and name creation are both part of the reorientation of the KarstadtQuelle mail order group as publicized in November 2006. The most important measures are the planned IPO or sale of neckermann.de in 2007, the international expansion of Quelle as the leading European brand for universal mail order, the increased growth of e-commerce and the expansion of teleshopping, the focusing of specialty mail order on the three growth segments “Golden Ager”, “Premium” and “Communities”, as well as the continued expansion in the growth markets of Russia and Central Europe.

Marc Sommer: “We are moving ahead according to plan with our publicly announced program. Through the dedicated, ongoing restructuring and the transformation of our businesses, we will achieve the prerequisites for stabilizing our core businesses in 2007 and profitable growth starting 2008”.