UPS Sets U.S. Shipping Rates For 2003

Today announced package shipping rate adjustments for 2003, consistent with those of recent years for daily customers, that will take effect in the United States on Jan. 6, 2003.
UPS Next Day Air® will increase 3.2 percent and UPS Worldwide Express® will increase 2.9 percent for U.S. export shipments. Rates for UPS's U.S. commercial ground services will increase 3.9 percent, with the residential surcharge changing from $1.10 to $1.15.

UPS’s Fuel Surcharge, an index-based surcharge that is adjusted monthly, is holding at 1.25 percent for November and December 2002, the lowest surcharge in the industry.

In August 2002, UPS began guaranteeing residential ground deliveries in the United States. This service completes UPS’s portfolio of guaranteed delivery services that customers turn to for committed reliability.

“We are confident that UPS’s portfolio of transportation services continues to offer the best value in the industry,” said John Beystehner, UPS senior vice president of worldwide sales and marketing. “In addition to competitive rates and high reliability, we provide many value-added services and technologies that help customers achieve cost-efficiencies.”

UPS's integrated transportation and information network offers customers, through a single point of contact and seamless access, a full portfolio of guaranteed shipping solutions ranging from air and ground to international service. Online tools, Web or wireless tracking capabilities and a broad array of returns options are among the innovative technologies that make UPS’s portfolio even more valuable and functional for customers.

The 2003 UPS rates with these changes will be available on UPS's Web site, UPS.com, or by calling 1-800-PICKUPS on Dec. 6, 2002. UPS OnLine® WorldShip and MyUPS.com, including its Quick Cost Calculator, will automatically reflect the new rates when they become effective on Jan. 6, 2003. Additionally, UPS Online® Tools integrated directly into customer Web sites will automatically reflect accurate rate information.

Founded in 1907, UPS is the world's largest transportation company, offering the most extensive range of e-commerce and supply chain solutions for the movement of goods, information and funds. In 2001, UPS generated revenues of US$30.3 billion and delivered more than 3.4 billion packages and documents worldwide. Headquartered in Atlanta, Ga., in the United States, UPS serves more than 200 countries and territories with the support of more than 370,000 employees worldwide.

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, including statements regarding the intent, belief or current expectations of UPS and its management regarding the company's strategic directions, prospects and future results, involve certain risks and uncertainties. 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.