Canada Post Group of Companies:

• Consolidated revenue from operations reached $7,300 million, an increase of $320 million, or 4.6% from the comparative period.



• Consolidated net income for the fiscal period ended December 31, 2006 was $119 million, a decrease of $80 million from 2005.



• Consolidated net income before taxes was $166 million, a decrease of $116 million from the comparative period.



• Consolidated cost of operations for fiscal 2006 totalled $7,116 million, an increase of $435 million or 6.5% over the $6,681 million recorded in the prior year.



• Revenues from Transaction Mail totalled $3,204 million; Parcels revenues totalled $2,607 million; Direct Marketing revenues were $1,307 million.



• Return on equity ratio was 8.4%, down from 15% in 2005.



• Canada Post Corporation processed 11.6 billion pieces in 2006.



• 71,869 full and part-time employees, making the Corporation the sixth largest employer among businesses in Canada.

Segmented Highlights:

Canada Post

• Canada Post was named as one of the Top 100 Employers in Canada for 2007 in Maclean’s magazine.



• The Commerce-Leger Marketing survey ranked Canada Post third of 150 most-admired businesses in Quebec.



• The Canada Post segment represents 80% of the corporation’s consolidated revenue.



• Canada Post's revenue from operations increased 4.4%, from $5,587 million in 2005 to $5,831 million, in 2006.



• Canada Post's income before tax was $99 million for 2006, a decrease of $151 million from the comparative period.



• As a result of its financial performance last year, Canada Post declared and will pay a dividend of approximately $48 million to the Government of Canada in 2007. An $80 million dividend was paid to the shareholder in 2006.



• Lettermail on-time service performance score, at 96.4%, topped the corporate target of 96%.



• Despite a strong economy, the Lettermail product was essentially flat in 2006.



• The cost of salaries increased $155 million, or 5.3%, to reach $3,089 million in 2006.



• Employee benefit costs increased by $161 million, or 22.1%, to reach $885 million in 2006. This increase was primarily driven by escalating retirement health benefit expense, pension expense, and a reduction in transitional funding from the Government of Canada.

Purolator

• Purolator generated net operating revenue of $1,347 million in 2006, an increase of $93 million over the $1,254 million achieved in 2005.

Logistics

• The Logistics segment includes the financial results of Progistix and Intelcom. The 2006 financial results improved by $6 million, but the segment remained in a loss position of $1 million.

All Other Segment

• The All Other Segment includes the financial results of Innovapost, CPIL and epost up to October 31, 2006. There is nothing of significance to report.