Arriva wins rail contract in Germany

Arriva plc, one of Europe's leading transport operators, has wonthe contract to operate rail services between Munich, Oberstdorf inthe Bavarian Alps and Lindau, southern Germany.

Bayerische Eisenbahngesellschaft mbH (BEG), the Bavariangovernment body responsible for the contract, selected Arriva afterit submitted a strong bid which promises quality services forcustomers and good value for the client body. The tendering processwas open to any EU transport operator.

The contract is anticipated to generate revenue over 150 millionEuro (£103 million) over its 10-year lifetime.

Starting 9 December 2007, Arriva will operate six locomotivesand 22 carriages covering 1.53 million kilometres a year. Thebusiness will employ around 50 people.

The current contract, known as ALEX, is operated as a jointventure by Arriva and SBB GmbH (the German division of the federalSwiss Railway). Following the contract win Arriva will become soleoperator. Arriva operates rail passenger services in seven Germanfederal states. The contract will operate as part of Arriva'sRegentalbahn business, which provides rail services in Bavaria,Thuringia and Saxony. The new contract will integrate with Arriva'scurrent service in Bavaria providing passengers with directservices from Furth im Wald and Hof through to Munich andbeyond.

David Martin, Arriva's chief executive, said:

This contract win strengthens our position in theGerman transport market and demonstrates our ability to continue togrow in the increasingly liberalised European transportmarket.

Our expertise in developing bids which offer qualityand good value is helping us enhance our position as a leadingEuropean transport services organisation.

As part of the contract Arriva will lease an additional six newlocomotives and refurbish train carriages.

Notes to editors

• Arriva is one of the largest private sector providers ofpassenger transport in mainland Europe. It employs nearly 33,000people and provides more than one billion passenger journeys everyyear.
• Arriva provides transport services including buses, trains,commuter coaches and water buses in eight European countries –Denmark, Italy, Germany, the Netherlands, Portugal, Spain, Swedenand the UK.
• Arriva entered the German transport market in April 2004 withthe acquisition of Prignitzer Eisenbahn Gruppe, which operates railservices in the federal states of North Rhine-Westphalia,Brandenburg and Mecklenberg-Western Pomerania. In September 2004Arriva acquired a 76.9 per cent share holding in Regentalbahn whichprovides rail services in Eastern Bavaria, Thuringia, Saxony and tothe Czech Republic.
• In November 2005 Arriva announced that it had won the contractto operate rail services between Munich, Hof and Furth im Wald inBavaria from December 2007.
• Arriva entered the German bus market in October 2005. The Groupoperates Sippel, which provides services in the Rhine-Main area,and Verkehrsbetrieb Bils KG (Bils) which operates in theMünsterland region.