UPS Launches Guangzhou Flights; First To Offer Non-stop U.S.-to-Guangz

    Business Editors

    GUANGZHOU, China--(BUSINESS WIRE)--April 6, 2005--UPS (NYSE:UPS) today announced the start of service from the United States to Guangzhou, China, in a ceremony at Baiyun International Airport. UPS is the first express and cargo carrier at the airport and the first to offer non-stop flights between Guangzhou and the United States.
    "Businesses everywhere are seeking more efficient and reliable ways to access the China market for their exports and imports," said David Abney, president, UPS International. "This is another milestone in UPS's strategy to stay ahead of those customer needs and move further ahead of the competition in the world's fastest growing market."
    UPS is flying six days a week between the United States and Guangzhou. The city lies in the strategically important Pearl River Delta region (southeastern China), one of the world's fastest growing manufacturing regions which accounts for 30-to-40% of China's foreign trade. UPS will offer its customers the latest end-of-business-day pick-up time for service from Guangzhou to the United States.
    The rights to operate the flights are part of 12 additional frequencies awarded to UPS last November by the U.S. Department of Transportation (DOT) following the historic aviation agreement between the U.S. and China signed in July 2004 by Civil Aviation Administration of China Minister Yang Yuanyuan and DOT Secretary Norman Mineta. The additional frequencies allowed UPS to triple its flights to China this year to 18 - 12 to Shanghai and six to Guangzhou. On April 1, UPS was granted authority by the DOT to add an additional three flights to China in 2006.
    This announcement is the latest in a string of UPS accomplishments in China. Along with additional flights, UPS recently announced plans to establish an air hub in Shanghai in 2007. And last December, the company announced plans to acquire direct control of its express operations in 23 cities across China from its long-time partner, Sinotrans. Operations in those cities extend service to an additional 200 locations, which account for more than 80 percent of China's gross domestic product.
    UPS's supply chain management unit, UPS Supply Chain Solutions, also recently announced plans to open an additional 20 facilities in some of China's major cities over the next two years. This will expand the number of logistics centers operated in China by UPS Supply Chain Solutions to more than 40.
    UPS is the world's largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the movement of goods, information and funds. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide. UPS's stock trades on the New York Stock Exchange (UPS), and the company can be found on the Web at 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, 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, 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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CONTACT: UPS, Atlanta Kristi Wilson, 404/828-8090 kwilson@ups.com or Edelman Marisa Puthoff, 404/262-3000 marisa.puthoff@edelman.com

KEYWORD: GEORGIA CHINA INTERNATIONAL ASIA PACIFIC INDUSTRY KEYWORD: AEROSPACE/DEFENSE GOVERNMENT AIRLINES TRANSPORTATION APPAREL/TEXTILES SOURCE: UPS

Copyright Business Wire 2005