Canada Post Group of Companies:

• Consolidated revenue from operations reached $6.9 billion, an increase of $293 million, or 4.4% from the comparative period.
  
  
• Consolidated net income for the fiscal period ended December 31, 2005 was $199 million, an increase of $52 million from 2004.
  
  
• Consolidated net income before taxes was $282 million, an increase of $41 million from the comparative period.
  
  
• Consolidated cost of operations for fiscal 2005 totalled $6,681 million, an increase of $268 million or 4.2% over the $6,413 million recorded in the prior year.
  
  
• Revenues from the communications market (Lettermail and hybrid Lettermail services) totalled $3,088 million. In the physical distribution market (Priority Courier™, Xpresspost™, Expedited Parcel™ and Regular Parcel™) revenues totalled $2,365 million.
  
  
• Return on equity ratio was 15%, a significant milestone and achievement of one of the key objectives of the Policy Framework approved by the Government of Canada in 1998.
  
  
• Canada Post Corporation processed 11.1 billion pieces in 2005.
  
  
• 71,000 full and part-time employees, making the Corporation the sixth largest employer, and ranked 41^st among Canadian businesses in terms of consolidated revenue.
  
  
• $2.8 billion spent annually on goods and services, creating some 30,000 additional jobs.

Segmented Highlights:

Canada Post

• Canada Post's revenue from operations increased from $5,382 million in 2004 to $5,587 million, in 2005.
  
  
• Canada Post's income before tax was $250 million for 2005, an increase of $53 million from the comparative period.
  
  
• As a result of its financial performance last year, Canada Post declared and will pay a dividend of approximately $80 million to the Government of Canada in 2006. A $59 million dividend was paid to the shareholder in 2005.
  
  
• Lettermail achieved the targeted, on-time, combined service performance score of 96%.
  
  
• Despite a strong economy, Lettermail erosion continued in 2005.
  
  
• Operating revenues from the advertising market (Unaddressed Admail™, Addressed Admail™) was $830 million, an increase of $44 million over the same period a year ago.
  
  
• Canada Post's salary expenses increased by $96 million, to reach $2,934 million in 2005. The increase was mainly due to wage increases of approximately 3% to employees represented by the CUPW (Canadian Union of Postal Workers), CPAA (Canadian Postmasters and Assistants Association), APOC (Association of Postal Official of Canada) and UPCE (Union of Postal Communications employees).
  
  
• Employee benefit costs increased by $75 million to reach $725 million in 2005. This increase was primarily driven by escalating retirement health benefit expenses and reduced income from segregated cash investments relating to employee termination benefits.
  
  
• In the 2005 fiscal period, Canada Post achieved an overall customer satisfaction score of 81%, matching the previous year, while the score for small business and consumers remained at the 2004 level of 77%.

Purolator

• Purolator's revenue grew by 9.3% to $1,254 million from $1,156 million in 2004.

Logistics

• The Logistics segment revenue increased to $143 million from $137 million in 2004.

All Other Segment

• Revenue from operations decreased by $12 million, from $192 million in 2004 to $180 million in 2005.