American Freightways Announces General Rate Increase.

Business Editors

HARRISON, Ark.--(BUSINESS WIRE)--July 10, 2001

American Freightways, Inc., a leading LTL (less-than-truckload) carrier providing all-points direct regional service in 40 states and a part of the FedEx Corp. (NYSE:FDX) family of companies, will institute a general rate increase effective August 6, of approximately 5.9 percent on regional LTL shipments. Some additional adjustments in certain longer haul and imbalanced lanes will be included. The increase applies to the Company's interstate and intrastate common carrier freight rates published in its 5000 series tariff. Minimum charge floors will increase by $2.50.

"American Freightways is committed to supplying premium service at a reasonable cost for our customers. We remain steadfast in our mission to satisfy customers by providing industry-leading regional transit times, consistent on-time performance, and advanced technology for capturing real-time information," said Dennie Carey, AF's executive vice president of marketing. "We continue to be recognized with awards from our customers, leading shipping groups, and business publications for superior service and value. New services and products that support our customers' needs for the smooth and efficient flow of goods throughout the supply chain have been and will continue to be introduced throughout the year."

American Freightways, recently acquired by FedEx Corporation, is a scheduled, for-hire carrier of less-than-truckload shipments providing direct all-points delivery service in 40 contiguous states. Together with Viking Freight of San Jose, Calif., these two operating companies of FedEx Freight provide direct service to virtually all U.S. zip codes, including Alaska, Hawaii and Puerto Rico. Internationally, American Freightways and Viking provide service to North, Central and South America and the Caribbean. More information about AF can be found at www.AF.com.

With annual revenues of $20 billion, FedEx Corp. is the premier global provider of transportation, e-commerce and supply-chain management services. The company offers integrated business solutions through a network of subsidiaries operating independently, including FedEx Express, the world's largest express transportation company; FedEx Ground, North America's second largest provider of small-package ground delivery service; FedEx Freight, a leading provider of regional less-than-truckload freight services; FedEx Custom Critical, the world's largest provider of expedited, time-critical shipments; and FedEx Trade Networks, a provider of customs brokerage, consulting, information technology and trade facilitation solutions.

NOTE TO EDITORS: FedEx Corp. press releases are available on the World Wide Web at www.fedex.com