United Shipping and Technology Announces Positioning as Internet Backbone Supplier for Express Shipping and Custom Warehousing.

MINNEAPOLIS--(BUSINESS WIRE)--May 13, 1999--

At its annual meeting last week, United Shipping and Technology (NASDAQ:USHP) shareholders learned of plans to further position the company as an Internet backbone supplier of shipping technologies and express courier services for e-commerce.

Peter Lytle, Chairman and CEO of United Shipping and Technology (US&T), said that supporting the "back side" of the web business is a natural course for the company. "We are already developing Internet-ready software and hardware for the shipping industry through our Intelligent Kiosk (IQK) subsidiary, regional express courier delivery through our Advanced Courier Services subsidiary and electronic internet services with our i-courier web site and software," he said. "We know of no national company with a backbone strategy in the strictly "intraday" shipping industry and custom warehousing for e-commerce."

The decision was based on the realities of how e-commerce is shaping the way commerce itself is being driven, with backbone sales already topping $11 million per day for companies like Cisco in networking equipment, and $5 million a day in web-generated sales for Dell Computer. The market is clearly being established for both front and back of house opportunities.

To specifically address the needs of the burgeoning growth of e-commerce, US &T plans to expand advanced dispatch and logistic systems to be compatible with its existing couriers, automated shipping system and i-courier software. The company's plans also include developing custom fulfillment warehouses and expanding its delivery arm to contract with leading Internet retailers to provide rapid delivery and manage product returns.

The US&T shipping kiosks, already in many states, are located for easy-access and can be utilized for product returns, while its courier services will work with major carriers for cost-effective returns to retail warehouses. US &T's continuing acquisition of courier services is part of a consolidation strategy which also includes developing and acquiring leading edge technology for optimal operating efficiencies.

The company has already entered into several alliances and joint ventures to develop Internet based kiosks and began acquiring couriers in Minneapolis and Denver markets earlier this year.

Lytle indicated that US&T had seriously looked at the web and e-commerce as a development target since last May. "We believe the future of the web will be based on the back side of the Internet business as much as the front side. To broaden their customer base, companies like Amazon.com will increasingly compete in "real time" product delivery with traditional retailers. With our courier and Internet based capabilities, our goal is to serve that market, with custom fulfillment centers for high-turn items and courier services to expedite delivery."

According to Tim Becker, CFO for US&T, discussions are underway with major financial partners to launch this ambitious strategy. "Building the foundations for the backbone business is an expensive undertaking," said Becker, "but once established, we can control these markets for a very profitable business. We are a technology and custom service business that is focused on the Internet, so building a leadership position as a backbone supplier entails taking some inherent risks and making commitments now. We will also continue to manage our base business allowing revenues from these businesses to grow our e-commerce presence."

Contact US&T at 1-800-433-1066, or visit the web site at www.u-s-t.com for more information. The company can also be contacted via e-mail at [e-mail].

Some of the information in this release is forward-looking and subject to certain risks as described in the company's filings with the Securities and Exchange Commission, including the company's Form 10-K for fiscal year ended June 30, l998.