US&T Pushes Ahead With Restructuring CEDS to Respond to Growing Demand for Same-Day Delivery.

HOUSTON--(BUSINESS WIRE)--Dec. 7, 1999--

Growth in E-Commerce and Heightened Demand for Immediate Response Fuels Greater Need for Reliable and Full Service Logistics Solutions

United Shipping & Technology (US&T; Nasdaq:USHP) today announced the initial results of its planned, strategic restructuring effort following its September 27, 1999 acquisition of Corporate Express Delivery Systems (CEDS).

As the largest provider of customized delivery solutions for same-day, time-critical shipping and e-commerce distribution in North America, US&T is poised to take advantage of the rapidly increasing demand for B2B and B2C same-day delivery services across the United States.

The two major realignment efforts currently underway include a change in the basic organizational structure of the company and the decentralization of the sales force. The restructuring effort includes the formation of a new Business Development group, to be headed up by Lonnie Bane, Sr. VP of Business Development and Support Services. This group will work hand-in-hand with the field sales force to continue to develop and maintain business relationships that can be extended on a national scale. In addition, the sales and marketing functions are being decentralized into three existing geographic regions (Eastern, South Central and Western), which will enable US&T and CEDS to streamline the sales process and quicken their response time to customers. This, in turn, will allow the company to achieve its goal of increased customer intimacy, forming closer relationships to its local customers.

"Our ultimate goal is to become the branded global leader in same-day delivery solutions and to achieve this goal we are committed to providing a higher level of customer service," stated Peter Lytle, Chairman and CEO of US&T. "By focusing on restructuring the company from the inside out and making our company as effective and efficient as possible, we will be better prepared to take advantage of the increasing demand for immediate delivery that will occur as the pace of e-business continues to escalate."

According to a study conducted by the Parthenon Group, a transportation consulting firm, the annual domestic same-day delivery service market is estimated to be approximately $15 billion with an annual growth rate of 5.5 percent. At present, the industry is very fragmented, consisting of over 10,000 regional delivery companies with limited service offerings. As the market leader, US&T has both the technological know-how and an extensive infrastructure that has allowed the company to not only maintain its leadership position, but also to expand its hold on the marketplace. Through an aggressive acquisition strategy and a commitment to advance technological initiatives through the company's technology unit, the Intelligent Kiosk Company (IQ K), US&T is poised to take full advantage of the increasing demand for scheduled same-day and on-demand delivery.

US&T is the largest national same-day delivery company and provides customized transportation services to key Fortune 500 companies and others across several vertical industries including: financial institutions; healthcare; petrochemical; computers and electronics; and e-commerce. Among the company's customers are Bank of America, Fleet Bank, McKesson Corporation, BP Amoco, Dow Chemical, and Maintenance Warehouse/Home Depot.

US&T is also the parent of IQK, the company's technology division. IQK manages US&T's proprietary lines of advanced technology for all aspects of shipping, including increased access and customer service via its interactive shipping and Internet document delivery system. i-Courier, the company's Internet based delivery service, offers customers low-cost alternatives to traditional document delivery services.

Already a leader in same-day e-commerce shipping, US&T's mission is to grow market share by providing a higher level of service and logistical support to customers through the use of advanced technology, while at the same time bringing a new dimension to interactive commerce and information retrieval. For more information, visit the company's web site at www.u-s-t.com -0-

United Shipping & Technology

FACT SHEET

Company Name:         United Shipping & Technology (US&T; Nasdaq:USHP)

Operating Entity:     Corporate Express Delivery Systems (CEDS)

Management:           Peter Lytle, Chairman and CEO, US&T
                      Marshall T. Masko, Vice Chairman, US&T
                      Timothy G. Becker, CFO, US&T
                      Burt Merical, President and COO, CEDS

US&T Headquarters:    9850 51st Avenue North
                      Suite 110
                      Minneapolis, MN 54422

CEDS Headquarters:    11 Greenway Plaza
                      Suite 250
                      Houston, TX 77046

     Overview: In September of 1999, US&T acquired Corporate Express
Delivery Systems (CEDS). Integrating US&T's technology with CEDS'
extensive infrastructure and impressive "on-time" delivery rate, US&T
is the largest same-day delivery company in the United States. The
company develops custom delivery solutions for same-day, time-critical
shipping and e-commerce distribution. US&T's presence as the largest
same-day delivery company has secured strong bonds with manufacturers
and retailers striving to speed up the pace of delivery and meet the
needs of e-commerce customers. Industry analysts at Forrester Research
estimated that B2B e-commerce will hit $109 billion in 1999 and rise
to a total of $1.3 trillion by 2003, with an annual growth rate of
99%. This represents a huge opportunity for US&T to expand its
business and capitalize on this rapidly growing market.

Operating Facilities: Over 200 local offices in the top 100
                      Metropolitan areas in the U.S.

Ground Services

-    Provide delivery services from approximately 190 locations and
     operate in 80 of the top 100 Market Service Areas (MSAs) as well
     as numerous secondary markets.

-    Four main businesses:

    1. Scheduled Delivery: same-day, time-sensitive deliveries that
are recurring in nature. Pick-up and delivery routes are pre-defined
based on the needs of the customers. (e.g. financial institutions and
service and repair companies).

    2. On-Demand Delivery: Local and inter-city immediate pick-up and
delivery (1 hour, 2-4 hour and 4+ hour), (e.g. hospitals, law offices,
technology companies).

    3. Distribution Services: Same-day delivery for the home and
time-sensitive local deliveries that require intermediate handling or
sorting prior to delivery to multiple locations. (e.g.
pharmaceuticals, retailers, manufacturers).

    4. Integrated Supply: Full logistics management and replenishment
responsibility of non-critical inventories for large multi-sited
customers (also called supply-chain management).

Operations Organization

-    Three separate regions:

-    Western Region President: Chip Winton (Houston)

-    South Central Region President: Vic Serri (Houston)

-    Eastern Region President: Jay Waldman (New York City)

Air Services

-    Three main brand names:

-    Tricor

-    Air Courier Dispatch

-    Midnite Express

-    The "air group" provides same-day scheduled and on-demand
     delivery:

-    Same-Day Scheduled Air Delivery Services: Provided for
     time-sensitive deliveries that are recurring in nature. Pick-up
     and delivery routes are pre-defined based on the needs of the
     customer. (e.g. financial institutions for delivery of
     non-negotiable instruments, primarily canceled checks)

-    Next Flight Available/On-Demand Delivery: Local same-day delivery
     whereby messengers or drivers respond to a customer's request for
     immediate pick-up and delivery. (e.g. entertainment firms,
     shipping production materials including film footage and music,
     investment banks, advertising agencies, hospitals shipping human
     organs and manufacturing firms requiring parts for idled
     machines).

-    Western Region President, Chip Winton, oversees the CEDS air
     businesses.

-    Provides delivery services from 40 locations.

Corporate Strategy: US&T provides a higher level of service and
     logistical support to customers through the use of advanced
     technology, while at the same time bringing a new dimension to
     interactive commerce and information retrieval. The same-day
     delivery service market is estimated at $15 billion with an
     annual growth rate of 5.5 percent (The Parthenon Group). Through
     a combined strategy of focusing on technology and franchising,
     US&T is poised to become the `icon' of the industry by providing
     the fastest, most reliable full service logistics solutions
     available.