UPS Establishes Its Own Operations in Argentina; Takes Another Step Toward Bringing Enhanced Service to the Mercosur Region.

ATLANTA--(BUSINESS WIRE)--Dec. 2, 1998--UPS today announced the establishment of UPS de Argentina, S.A., further strengthening the company's commitment to the Mercosur region.

UPS will immediately establish its operations in Argentina through an asset purchase of Union Pak, S.A., an Argentina-based package delivery company that has worked with UPS on a contractual basis since 1992. Terms of the agreement were not disclosed.

The formation of UPS de Argentina, S.A. will significantly enhance UPS's presence in the marketplace and allow for customers shipping to and from Argentina to benefit from the company's worldwide network and array of services. The general manager for UPS de Argentina, S. A. will be David Golden, a 20-year veteran of UPS. Golden will be responsible for the growth and development of UPS operations in Argentina, as well as the seamless transition from Union Pak to UPS.

"Argentina is a thriving business partner within the Mercosur region," said Robert Elizondo, Vice President, UPS Americas Region. "Our goal is to help this South American region take a strong lead in the world economy through ease of commerce."

Furthering its commitment to the Mercosur region, on November 10, UPS formed an agreement with MacAir Jet, S.A. to charter flights between Ezeiza International Airport in Buenos Aires and Viracopos Airport in Campinas, Brazil, just outside of Sao Paulo. These dedicated flights will improve transit times between Argentina and Brazil and offer customers in Buenos Aires and Sao Paulo later pick-up times. On the strength of these recent developments, UPS was awarded a contract to provide international delivery service for YPF, Argentina's largest energy company.

"UPS is in the process of bringing state-of-the-art technology to our new operations in Argentina, including improved tracking and tracing, computerized shipping systems and electronic commerce capabilities," said David Golden, General Manager, UPS de Argentina, S. A. "These initiatives, and the developments announced today, will put UPS de Argentina, S.A. in an excellent position to provide our customers with the industry's best worldwide delivery service."

The announcements follow on the heels of UPS's strategic agreement with Challenge Air Cargo to provide guaranteed roundtrip dedicated express delivery service to and from the Mercosur region, by way of Brazil, five days a week. UPS also opened a customs clearance facility at the Viracopos Airport in Campinas. The UPS dedicated facility will mean faster delivery and better customer service because of on-site customs officials, scanning technology and a communication link to the UPS mainframe computer -- allowing customers around the world to retrieve up to date information on the status of their shipments.

UPS's Latin America and Caribbean region was established in 1989 and is headquartered in Miami Lakes, Fla. The company serves more than 50 countries and territories throughout the region and provides delivery service to every address.

UPS is the world's largest express carrier and package delivery company, serving more than 200 countries and territories around the world. The company has been named the "World's Most Admired" delivery company by Fortune magazine, as well as "America's Most Admired" delivery company for 15 consecutive years.

NOTE TO EDITOR: The Mercosur region is comprised of Brazil, Argentina, Paraguay, Uruguay and Chile.