CANADA POST AND BORDERFREE FORM PARTNERSHIP
TO PROVIDE HASSLE-FREE CROSS-BORDER SHOPPING

Canada Post and Borderfree Ltd. today announced a partnership that will
provide Canadian catalogue and Internet shoppers with broader product
selection and a seamless, hassle-free cross-border shopping experience,
while supporting U.S. merchants with an integrated technology, marketing and
logistics solution for accessing the Canadian marketplace.

Currently 40 per cent of all Canadian online purchases are from U.S. web
sites and
Canadian catalogue and Internet shoppers are experiencing a number of
frustrations including limited choice and access to U.S. merchants.  Higher
domestic pricing, hidden charges, high shipping costs, long delivery times
and difficulties involved in returning items and getting duties and taxes
reimbursed are among the concerns expressed by Canadian consumers. The
Canada Post/Borderfree Partnership will solve many of the problems created
by the complexities involved in cross-border transactions.

"Our partnership with Borderfree will stimulate and create a sustainable
'direct to home' industry in Canada and enable Canadian consumers to readily
access U.S. merchants," said The Honourable André Ouellet, president and
chief executive officer of Canada Post. "Canada Post's experience in parcel
delivery, marketing and e-commerce, combined with Borderfree's technology
and cross-border experience, will break down the existing market barriers
and allow Canadians to shop at numerous U.S. retailers while eliminating the
frustrations shoppers are currently experiencing."

This complements Canada Post's GoShopping Online Directory, a virtual
shopping mall featuring some 1,000 online Canadian stores accessible through
one convenient web site, www.GoShopping.canadapost.ca.

"We're very excited about our new partnership with Canada Post," said Thomas
P. Reeves, president and chief executive officer of Borderfree.  "While we
have a strong portfolio of current merchants, as a stand-alone entity,
Borderfree has lacked the logistics and marketing capability that Canada
Post can provide to reduce costs and improve access to, and for, Canadian
consumers.  This Partnership will help to close the current per capita gap
that exists in both catalogue and on-line purchases between Canada and the
U.S. by improving product selection and the consumer shopping experience."

Shopping with Canada Post/Borderfree enabled merchants is straightforward.
Canadian consumers simply browse and shop using the U.S. merchant's existing
catalogue or web site. The purchaser is provided with a delivered cost
(including duties and taxes) in Canadian dollars and the approximate
delivery time before they confirm the order.  Purchased items are delivered
to a consolidation site in the USA where they are validated by a broker and
prepared for importation.  Once in Canada, the items are handed over to
Canada Post for delivery to the consumer.

There are currently 20 merchants and over 100 web sites enabled with the
Borderfree technology including the NHL, Crate and Barrel, Brookstone,
Iomega, Ritz Camera, eCost and others -- see www.borderfree.com for a
complete list of enabled merchants.

About Borderfree
Founded in 1999, Borderfree is a technology services company based in
Toronto, Canada that eliminates the difficulties experienced by U.S.
merchants in serving consumers across borders.  Borderfree provides a
comprehensive suite of low-integration technology services including: total
landed cost calculation in buyer's local currency (exchange, duty, taxes,
shipping costs), payment processing, management of cross-border data,
returns processing, and customer service tools.  Borderfree is a privately
held company, backed by Brightspark Ventures, Mosaic Venture Partners,
Blackboard Ventures, the venture capital group of the Ontario Teachers
Pension Plan, and TorStar Corporation

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