UPS's New Intra-Asia Hub Off to a Flying Start.

Business Editors

SINGAPORE--(BUSINESS WIRE)--July 31, 2002

Volume up 20% in countries linked to UPS intra-Asia hub

United Parcel Service (NYSE: UPS) today announced that volume increased a solid 20% from countries directly linked to its new intra-Asia hub in the Philippines.

The announcement follows other healthy second-quarter financial news from the region, including a 17% gain in Asia export volume and a 32% rise in export volume from China.

"Clearly, customers are realizing the value and service UPS offers in the region," said Ron Wallace, president of UPS International. "This impressive growth shows that customers are turning to UPS for the complete portfolio of services the company now brings with the hub in place."

Located at Diosdado Macapagal International Airport in the Philippines, the intra-Asia hub enables UPS to speed delivery times and offer a wider array of services for moving goods within Asia and from the region to the rest of the world. The hub opened in April, exactly one year after UPS began its non-stop service between the United States and China, which continues to exceed the company's expectations for revenue, volume and profitability.

In response to the intra-Asia volume growth, UPS added a new flight route from the hub to Seoul and Taipei and an additional UPS B757 to service that route. This will help ensure that customers in those cities enjoy the competitive advantages of earlier deliveries and later pick-up times. UPS also added a daily flight between the hub and Tokyo and Osaka when a second runway opened at Tokyo's Narita International Airport  in April.

The UPS intra-Asia hub allows the company to offer enhanced services to other parts of the world as well, including shaving a day off delivery from Asia to Europe. As a result, UPS added a sixth UPS "around-the-world" flight directly linking the two regions because of increasing demand for its air cargo services.

The intra-Asia hub operates daily flights that link major Asian commercial centers including Hong Kong, Taipei, Tokyo, Osaka, Singapore, Shanghai and Seoul. It also links to the United States with flights through UPS's international hub in Taipei.

Founded in 1907, UPS is the world's largest express carrier and largest package delivery company and a leading global provider of specialized transportation and logistics services, serving more than 200 countries and territories. With more than 250 heavy jet aircraft, UPS Airlines is the 9th largest in North America and the 11th largest in the world. In 2001, UPS generated revenues of $30.6 billion and delivered more than 3.4 billion packages and documents worldwide. Headquartered in Atlanta, the company resides on the Web at http://www.ups.com.

EDITORS NOTE - The UPS intra-Asia hub has direct flights linking seven Asian countries: China, Hong Kong, Japan, Korea, Philippines, Singapore and Taiwan.

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 involve certain risks and uncertainties, including statements regarding the intent, belief or current expectations of UPS and its management regarding the company's strategic directions, prospects and future results. 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 (or customer behavior in anticipation of such events), 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.