Guernsey Post proposes price freeze for local Mail

Guernsey Post has submitted its latest pricing proposal to the OUR. Under
the proposal, Guernsey Post intends to freeze the price of local and UK letters
for household customers and introduce some price reductions for business
customers. Some necessary increases to Large Letter and Packet Tariffs are
also planned to ensure that prices more accurately reflect the cost of
providing services.

Bulk Mail customers will benefit from the proposed significant reductions in
international prices which Guernsey Post intends to introduce earlier from
January 2011.

Boley Smillie, Guernsey Post Chief Executive said.
"Over the period of this tariff Guernsey Post is committed to cost reduction
totalling approximately £3million which will be reinvested in the form of lower
prices immediately. As well as freezing letter prices for household customers
we have been able to freeze or reduce prices for most of our business and
bulk mail customers.

We are confident that the proposal Guernsey Post has submitted to the OUR
accurately reflects our willingness to respond to the challenges of operating in
within our marketplace."

Guernsey Post has also welcomed the OUR's proposed changes to the way it
sets prices:

"The OUR's proposal to change the way the tariff submission process works
will enable Guernsey Post to react commercially to changes within a
competitive market whilst protecting the best interests of all Guernsey Post's
customers," said Mr Smillie."

If the OUR approves the submission postal prices will change on April 1st
2011.