More than 325 million packages expected by UPS during holidays

UPS expects to deliver more than 325 million packages globally during this year's holiday peak season between Thanksgiving and Christmas.

The annual surge in holiday volume is forecast to crest this year on Tuesday, Dec. 18. On that peak day, UPS anticipates delivering more than 18 million air and ground packages globally, or more than 200 every second. That is more than a 35 percent surge over average daily volumes of about 13 million deliveries a day.

"For UPS, the holidays are the most challenging time of the year," said UPS Chairman and CEO Jim Kelly. "We know we will see a significant surge in volume, so we have put in place everything necessary to ensure that service remains at the highest levels through Christmas Eve."

UPS will offer all of its service options right up to Christmas, maintaining ground and air services through Dec. 24. In addition, UPS will maintain its money-back guarantees throughout the holidays on all time-definite air express products despite the huge surge of volume. These include UPS Next Day Air(R), 2nd Day Air(R) and 3 Day Select(R) services. All guarantees also will remain in place on Worldwide Express(SM) and Worldwide Expedited(SM) services to all locations served by UPS around the world.

Also notable this holiday season: — Anyone with computer access to the Internet can prepare their

packages at home, print out a label on plain paper and then
hand off the package to UPS through shipping outlets like Mail
Boxes Etc. or directly to a driver, avoiding lines at customer
counters. Working from the comfort of home, holiday packages
can be prepared and shipped regardless of whether they're
going by air or ground.

— UPS predicts this year's peak day for air express delivery

will be Thursday, Dec. 20, with a global volume of more than 4
million packages. This is about double typical air express
delivery levels.

— More than 1,300 UPS flights will take off each day during the

peak week (Monday, Dec. 17, through Monday, Dec. 24). During
an average week, more than 900 UPS flights take off every day.

— To accommodate additional air volume during this year's peak

week, UPS will add more than a dozen large jets to supplement
the more than 600 aircraft in operation year-round. It also
will open five additional "air hubs" just for the peak season.

— As one of only six airlines in the U.S. with an on-site

Meteorology Department, UPS is especially equipped to
anticipate any challenges posed by weather conditions.

— Online tracking requests, which averaged about 5 million per

day in October, are expected to reach 8 million to 10 million
inquiries on peak day (Dec. 18). The surge is a clear
indication of the continually growing use of Internet
technology to manage the "supply chains" of Fortune 50
companies from manufacturing down to individual consumers.
Occasional shippers appreciate the peace of mind of being able
to track their packages and confirm delivery, including the
ability to access UPS tracking through virtually any wireless
device.

— New this year, consumers at home can go to the Web to arrange

alternative delivery times and locations after receiving a UPS
InfoNotice that a package cannot be delivered without a
signature. Using the Web, for example, a consumer could
reschedule a delivery to a date when he or she will be home,
or ask that the package be delivered to an alternate address.

— UPS consistently is rated in consumer surveys as the nation's

premier e-commerce carrier, handling more online purchase
deliveries than any other transportation firm.

UPS recommends shipping holiday packages as early as possible, but all UPS services are available throughout the holiday season. In general, the following deadlines can be used to ensure delivery by Christmas:

— Ground service, ship by Monday, Dec. 17 — 3 Day Select, ship by Wednesday, Dec. 19 — 2nd Day Air, ship by Thursday, Dec. 20 — Next Day Air, ship by Friday, Dec. 21

UPS's peak volume projections illustrate the flexibility of its integrated network but are not intended as a precise forecast of fourth quarter performance. UPS also does not make year-to-year peak volume comparisons because each season varies substantially due to factors including weather, number of shipping days and the weekday upon which Christmas falls.

UPS is the world's largest express carrier and largest package delivery company, serving more than 200 countries and territories around the world. Headquartered in Atlanta, Ga., the company is located on the Web at www.ups.com. UPS has been named "America's Most Admired" Mail and Package Delivery Company for 18 consecutive years in a Fortune magazine survey.

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. 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, governmental regulations, our competitive environment, strikes, work stoppages and slowdowns, 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.