173 Members of Congress Say Revoke Deutsche Post/DHL's License.

Business Editors

WASHINGTON--(BUSINESS WIRE)--April 24, 2001

FedEx, Teamsters and State Leaders Sign On as Well

United Parcel Service today announced it has received overwhelming support from elected officials and labor leaders nationwide for its petition to revoke the Foreign Air Freight Forwarding License (FAFF) of DHL Worldwide Express--the express carrier ultimately controlled by the Deutsche Post, the German post office.

UPS as well as Federal Express, the Transportation Trades Department of the AFL-CIO, the International Brotherhood of Teamsters, the American Trucking Associations and U.S. Chamber of Commerce have filed related petitions against DHL with the Department of Transportation (DOT).

In all, the DOT has received 291 letters from members of the House and Senate that support UPS's position. Of the total, 173 Members ask the DOT to revoke DHL's license, and 118 call for DOT to review or reconsider the license. In addition, the White House has received letters of support from 31 mayors and 122 state legislative leaders.

In the letters, many of the members of Congress argue that the original intent of Congress' decision to deregulate air transportation was to keep it free, open and unfettered by government intervention.

According to UPS CEO Jim Kelly, "The high level of Congressional support, combined with endorsements from the Teamsters and Federal Express, goes a long way in demonstrating to the Department of Transportation that UPS's petition is right on the facts."

In its petition to the DOT, UPS argues that the German Post Office should not be licensed to operate in the U.S. market through DHL while it continues to enjoy the benefits of a government-granted monopoly in Germany. UPS believes that allowing the Deutsche Post access to the U.S. market would distort competition because Deutsche Post could subsidize its competitive activities with revenues gained from its postal monopoly.

On March 20, the European Commission Competition authorities ruled the Deutsche Post has been engaging in anti-competitive behavior in Europe including predatory pricing. "Granting Deutsche Post access to the U.S. market, through DHL, essentially imports their anti-competitive practices to the U.S.," said Kelly.

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 recently was recognized by Fortune magazine as "America's Most Admired" package and mail delivery company for the 18th consecutive year.