UPS opens Asia hub in Philippines

UPS Opens New Intra-Asia Hub
One Year After Launch to China, Customers to Gain
Accelerated Delivery Times Throughout Asia
PAMPANGA, Philippines, April 4, 2002 – United Parcel Service (NYSE:UPS) today opened its intra-Asia air hub in the Philippines, allowing the acceleration of delivery times for goods moving within and out of Asia. The new hub provides a central sorting point within four hours from all major Asian cities.

"With the launch of direct-to-China service, UPS emerged as one of the premier carriers in Asia," said Ron Wallace, president of UPS International. "Now, with the opening of the intra-Asia hub, we can offer even faster, more reliable service for our customers. It is indeed an important milestone for international commerce."

The intra-Asia hub opens almost exactly one year after UPS began direct flight service between the United States and China. That service has exceeded the company's expectations for revenue, volume and profitability.

Located at the former Clark United States Air Force Base, the new 23,000-square-foot hub connects the region's major cities to each other and to the rest of the world. The facility also will give most customers in Asia a later deadline for dropping off packages and documents and improve service reliability.

The intra-Asia trade market is expected to be one of the fastest-growing in the world for years to come. According to MergeGlobal, a logistics and trade strategy consulting firm, the intra-Asia trade market is expected to grow at a rate of 16.8 percent annually through 2005. In addition, recent studies by the Association of Southeast Asian Nations (ASEAN) project a 7-to-18 percent increase in air cargo traffic in Southeast Asia over the next 20 years.

The hub is located at the Diosdado Macapagal International Airport, which boasts a pair of the world's longest runways, at approximately two miles each. Located 50 miles northwest of the Philippine capital city of Manila, the new UPS hub will be able to sort 3,500 packages and documents per hour. The hub also will enable UPS to offer new services, including UPS Worldwide Express Plussm, its guaranteed next day, early morning delivery service, across Asia's major markets.

With other hubs located in Taipei, Hong Kong and Singapore, the Philippines hub links UPS's Asia Pacific air network. Taipei serves as UPS's trans-Pacific hub, connecting Asia to North and South America.

Ten flights a day will arrive and depart from the hub. UPS's daily around-the-world flight will connect through the hub, linking the company's Asian and European networks.

The hub is located within the Clark Special Economic Zone, which allows expedited customs procedures and is home to many manufacturing businesses. These companies will now have greater, more convenient access to international shipping through UPS's new hub.

Founded in 1907, 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. With more than 250 heavy jet aircraft, UPS Airlines is the 9th largest in North America and the 11th largest in the world. In 2001, UPS generated revenues of $30.6 billion and delivered more than 3.4 billion packages and documents worldwide. Headquartered in Atlanta, the company resides on the Web at http://www.ups.com.

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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 (or customer behavior in anticipation of such events), 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.

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For more information, contact:
John Wheeler, UPS
404-828-6463
Kristi Wilson, UPS
404-828-8090
Hope Heyman, Edelman
212-704-4512