UPS Launches New Mail Service in Dallas/Ft. Worth

Thursday June 7, 11:02 am Eastern Time Press Release

UPS Launches New Mail Service in Dallas/Ft. Worth

DALLAS–(BUS1NESS WLRE)–June 7, 2001–UPS (NYSE:UPS –
news) today announced that beginning this week, the Dallas/Ft. Worth Metroplex area will become the second market nationwide to receive a new presort service that helps customers better manage their mail.

Atlanta was the first market to test the new service, which is designed for small- and medium-sized mailers that do not typically qualify for postal discounts on first-class mail.

"This area is experiencing significant growth and activity, which makes our market an excellent choice for the next expansion of this service," said Gerard Gibbons, UPS Southwest Regional Sales Manager. "This service is a logical extension of UPS's core capabilities and complements the overall strategy of enabling global commerce."

Through the UPS presort service, customers who sign up for the service meter their mail at a reduced rate and then place the first-class letters into a specially provided, bright yellow UPS bag. The familiar UPS driver who stops at the business every afternoon picks up this package along with the other UPS packages.

"In addition to saving on postage, customers can also save time because they no longer need to dispatch an employee to the post office at the end of each day," said Gibbons.

Many small- to medium-sized mailers typically don't qualify for postal discounts on first-class letters because they don't generate enough daily volume. However, because UPS consolidates mail from a number of customers and then tenders it to a presort company, which sorts the mail and delivers it to the US Postal Service. UPS customers now can take advantage of reduced postal rates.

The presort service is part of a comprehensive package of mail solutions announced by UPS in April. The service is offered through a new UPS business unit with a portfolio that also includes services for
fiats and hybrid mail. Flats is a postal term that describes mail that is larger than a letter, but typically smaller than a parcel, such as annual reports and prospectuses.

Hybrid mail is a blend of both electronic and physical mail. Through the UPS hybrid mail service, large-volume mailers electronically send letters which are sorted and then electronically distributed to one of five regional printing facilities. From there the letters are printed and inserted into the U.S. Postal System nearest the final destination, expediting the delivery of those letters.

Currently, the UPS mail services are for first-class and standard mail generated in the United States and do not include final mail delivery, which is a monopoly service provided exclusively by the U.S. Postal Service.

Customers interested in the presort, hybrid mail or flats services should call (800) 811-1710.

All of the new services are based on the U.S. Postal Service's well-established workshare program, which was created to encourage cost efficiencies by having the private sector handle portions of the preparation and sortation of mail.

UPS is the world's largest express carrier and largest package delivery company and a leading global provider of specialized transportation and logistics services, serving more than 200 countries and territories. In 2000, UPS generated revenues of $29.8 billion and delivered more than 3.5 billion packages and documents worldwide. Headquartered in Atlanta, the company resides on the Web at http://www.ups.com.

Except for historical information contained herein, the statements made in this release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve certain risks and uncertainties, including statements regarding the intent, belief or current expectations of UPS and its management regarding the company's strategic directions, prospects and future results, including the anticipated results of the transactions described herein. Certain factors may cause actual results to differ materially from those contained in the forward-looking statements, including economic and other conditions in the markets in which we operate, our competitive environment, strikes, work stoppages and slowdowns, governmental regulation, increases in aviation and motor fuel prices, cyclical and seasonal fluctuations in our operating results, and other risks discussed in the company's form 10-K and other filings with the Securities and Exchange Commission, which discussions are incorporated herein by reference.

Contact:

UPS, Atlanta
Peggy Gardner, 404/828-6051