UPS Places Order for 10 Airbus A380 Freighters

    Business Editors

    LOUISVILLE, Ky.--(BUSINESS WIRE)--Jan. 10, 2005--Moving to expand the capacity of its air network to accommodate strong international growth, UPS (NYSE:UPS) today announced a firm order for 10 A380 super-jumbo freighter aircraft made by Airbus.
    In a related decision, UPS and Airbus have agreed to amend a previous order for A300 aircraft.
    "The A380 will allow UPS to effectively meet the fast-growing demands of our customers across a variety of global trade lanes," said John Beystehner, UPS chief operating officer and president of UPS Airlines. "This plane offers an exciting combination of payload and range that will help improve both the capability and efficiency of our international network."
    "We are extraordinarily pleased to have UPS join the growing list of A380 customers, particularly because their order demonstrates the strength of the aircraft as a freighter for air carriers based around the world," said Noel Forgeard, Airbus President and Chief Executive Officer.
    Deliveries of UPS's A380s are scheduled to begin in 2009 and run through 2012. The order also gives UPS the option to purchase 10 more of the planes. The purchase price of the aircraft was not disclosed. UPS has not yet made an engine selection for the A380.
    Under the agreement regarding A300 aircraft, UPS is reducing its previous order for 90 planes to 53. To date, 40 A300s have been delivered and the remaining 13 will be delivered by July 2006.
    The A380 has the capacity to carry three decks of cargo with container capacity of nearly 40,000 cubic feet and a maximum structural payload of 330,000 pounds. With a range of 5,600 nautical miles, the A380 can fly non-stop to places around the world that used to take two or more flights.
    UPS's international business has been very strong. During the third quarter of 2004, for example, UPS's total international export volume climbed 13.2% over the prior-year period. Asia export volume increased 29% and export volume out of China more than doubled compared to the prior year.
    "We continually evaluate and adjust the company's air network to meet the needs of our customers," Beystehner added. "Our strong international growth has increased our need for larger aircraft and the super jumbo is part of that solution."
    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, UPS serves more than 200 countries and territories worldwide. UPS 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 Airlines Mark Giuffre, 502-329-3060 or UPS Norman Black, 404-828-7593 or Mary Anne Greczyn, 703-834-3458

KEYWORD: GEORGIA INDUSTRY KEYWORD: AEROSPACE/DEFENSE GOVERNMENT CONSUMER/HOUSEHOLD AIRLINES TRANSPORTATION MARKETING AGREEMENTS SOURCE: UPS

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