Brown Gets Greener in Sacramento; New Technologies Save Over 30,000 Gallons of Fuel and Reduce Emissions by 288 Metric Tons.

SACRAMENTO, Calif. -- UPS (NYSE:UPS), the world's largest package delivery company, today announced it has completed the installation of technology that will significantly reduce the number of miles driven by its familiar brown package cars on Sacramento roads, subsequently reducing fuel consumption and emissions.

The new technology, which UPS calls package flow technology, consists of software and hardware that enable the company to map out shorter and more efficient routes for drivers. The new technology already has been implemented in UPS's Shore Street facility.

Each year, UPS drivers log more than 4.5 million miles on Sacramento-area roads. Based on initial results, package flow technology will reduce the number of miles driven each year in Sacramento by as much as 265,000 miles, saving more than 30,000 gallons of fuel and emitting 288 fewer metric tons of CO2.

"Reducing fuel consumption and vehicle emissions is especially critical in Sacramento because the American Lung Association ranks this area as one of the most ozone-polluted cities in the country," UPS District Manager Chris Martin said. "This is one of the many ways UPS is operating our business in unison with our environmental objectives."

Package flow technology leverages the tidal wave of digital information produced by scanning UPS "smart labels" on nearly all of the 14 million packages moving through the company's global network each day. Consequently, delivery route planners know the night before what packages will need to be delivered to Sacramento residents and businesses the next day. By "pushing" this data into a software program that plans driver routes, UPS can map out routes that require the fewest number of miles to complete.

The technology also helps decrease the number of missed deliveries, thereby reducing the need to drive back to an address a second time to deliver a package. This results in less fuel used and fewer CO2 emissions. UPS is implementing package flow technology at more than 1,000 package centers throughout the United States. Deployment is scheduled to be completed in 2007.

Additionally, UPS's Sacramento fleet includes 112 of the company's compressed natural gas (CNG) alternative fuel delivery vehicles. UPS operates one of the largest alternative fuel fleets in North America with over 1,700 such vehicles including fuel cell, hybrid electric, electric, propane-powered, liquefied natural gas and CNG.

Sacramento's Mather Airport also is only one of two airports in the nation currently testing the effectiveness of continuous descent approach (CDA) when landing rather than stepping down altitude. With CDA, planes use idle power to glide down, which makes less noise, burns less fuel and creates fewer emissions.

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.