FedEx Freight Launches Long-haul LTL Service, Expands Canadian Footprint.

FedEx National LTL and FedEx Freight Canada Broaden Freight Portfolio

MEMPHIS, Tenn. -- FedEx Corp. (NYSE: FDX) today announced the official launch of its new long-haul less-than-truckload (LTL) service, FedEx National LTL. Additionally, the company formally launched direct LTL service in Canada through the newly-formed FedEx Freight Canada. The addition of these services, combined with the industry-leading regional service provided by FedEx Freight, offers a more comprehensive solution for LTL customers and expands the FedEx portfolio.

FedEx National LTL and FedEx Freight Canada were created through the acquisition of the business assets of the former Watkins Motor Lines and Watkins Canada Express, which was finalized on Sept. 3, 2006. The new services respond to customer demand for greater flexibility in the LTL sector.

"In five months, we have made tremendous progress in our strategy of providing a reliable and cost-effective service for long-haul shippers," said Douglas G. Duncan, president and CEO of FedEx Freight. "The cultural fit between the former Watkins Motor Lines and FedEx, with a shared focus on employee engagement and customer service, has made it possible for us to achieve a great deal in a short period of time. We have hired close to 9,000 employees, re-branded equipment and integrated Web sites to allow customers to quickly and seamlessly navigate between our regional and long-haul services."

FedEx National LTL has also re-engineered its operations to focus on the long-haul market with a strictly scheduled network, similar to FedEx Freight's operations in the regional market. These changes enhance FedEx National LTL's already strong on-time performance, a key requirement of shippers in all sectors.

"Whether something is moving next-day or cross-country, dependability is critical to supply chain management. We believe that FedEx National LTL will offer a level of consistency and on-time performance that has been missing in the long-haul market," said Fred Boehler, vice president of supply chain, Borders Group, Inc.

Borders Group is a leading global retailer with more than 1,300 stores worldwide, including Borders and Waldenbooks stores located throughout the U.S. The retailer currently uses FedEx Freight to provide next-day and second-day deliveries to its domestic retail locations. Borders Group will use FedEx National LTL to transport products from suppliers on the East Coast to its distribution center on the West Coast, as well as to handle returns.

According to Boehler, the decision to use FedEx National LTL was driven by positive experiences with other FedEx operating companies and the corporation's proven ability to execute and meet the needs of its customers.

In addition to expanding its domestic portfolio through FedEx National LTL, FedEx Freight is enhancing its Canadian service offerings with FedEx Freight Canada. The company will handle LTL shipments moving into and out of Canada and intra-Canada shipments. This door-to-door service through FedEx companies will provide greater visibility for Canadian LTL shipments and transborder pickup and delivery points in the U.S.

About FedEx Freight

Within FedEx Corp., the FedEx Freight Segment had annual revenues of $3.6 billion in fiscal year 2006. The Segment includes FedEx Freight, a leading U.S. provider of regional next-day and second-day and interregional LTL freight services. FedEx Freight is known for exceptional service, reliability and on-time performance. Through a comprehensive network of nearly 330 service centers and advanced information systems, FedEx Freight provides service to virtually all U.S. ZIP codes, including Alaska and Hawaii. The carrier's regional and interregional LTL service is supported by a no-fee money-back guarantee on all eligible continental U.S. shipments. Internationally, the company serves Canada, Mexico, Puerto Rico, Central and South America, the Caribbean, Europe and Asia. With corporate offices in Memphis, Tenn., the FedEx Freight Segment also includes FedEx National LTL, a leading provider of long-haul LTL services throughout the U.S.; FedEx Freight Canada, an LTL operating company offering comprehensive coverage in Canada; FedEx Custom Critical, North America's largest time-specific, critical shipment carrier; and Caribbean Transportation Services, the leading provider of airfreight forwarding services between the United States and Puerto Rico.

About FedEx Corp.

FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $34 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its more than 275,000 employees and contractors to remain "absolutely, positively" focused on safety, the highest ethical and professional standards and the needs of their customers and communities. For more information, visit fedex.com.

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