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EMERY WORLDWIDE: U.S. DISTRICT COURT VOIDS $1 BILLION POSTAL AWARD TO EMERY COMPETITOR

 PALO ALTO, Calif., Dec. 23 /PRNewswire/ -- Emery Worldwide announced today that a federal judge in Washington D.C. has declared illegal and void a $1 billion, 10-year contract for Express Mail air transportation that was awarded to an Emery competitor.
 The USPS on Sept. 16 had awarded the contract to Postal Air Inc., a company jointly owned by Kitty Hawk Air Cargo Inc. and American International Airways Inc., which is owned by Conrad Kalitta.
 Emery, which has held the existing contract with the USPS since 1989, was a bidder in the procurement. The USPS had ranked Emery first in technical/management evaluations and second in price after Postal Air. The company, citing a biased procurement, then sued the postal service.
 In a ruling late Tuesday, U.S. district judge Royce Lamberth granted Emery's motion for a summary judgment and permanently enjoined the post office from proceeding with the Postal Air Inc. contract.
 "We are pleased that the federal courts have permanently affirmed our position in overturning this procurement," said W. Roger Curry, president and CEO of Emery.
 "Emery, as the existing contractor, has a top priority of providing the U.S. Postal Service with the best service available in transporting Express and Priority Mail, pending resolution of this important procurement, which could take a year."
 Judge Lamberth ruled that the procurement was illegal because Mr. Kalitta on two occasions during the procurement process had contacted USPS consultant William Cole to discuss future employment. Judge Lamberth described Mr. Cole as a "key player" in the award of the contract.
 Lamberth said it was "irrational" for the USPS to continue with Mr. Cole's services after it became aware on two occasions that Mr. Kalitta had contacted Mr. Cole about future employment.
 Emery Worldwide is the air freight subsidiary of Consolidated Freightways Inc. (NYSE: CNF).
 -0- 12/23/92
 /CONTACT: Maryla Boonstopple of Consolidated Freightways, 415-813-5337/
 (CNF)


CO: Emery Worldwide; Postal Air Inc. ST: California IN: TRN SU:

SG-BR -- SJ001 -- 9420 12/23/92 08:01 EST
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Publication:PR Newswire
Date:Dec 23, 1992
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