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FedEx Archives: 1998 Press Releases

( BW)(FDX-CORP)(FDX) FDX Secures Additional $1 Billion Credit Line for FedEx Contingencies; Line of Credit Provides Additional Working Capital

    Business Editors

    MEMPHIS, Tenn.--(BUSINESS WIRE)--Nov. 16, 1998--FDX Corp. (NYSE:FDX) has secured a $1 billion line of credit for working capital purposes as part of its contingency plans in the event of a pilot-related business interruption at Federal Express Corp.(FedEx). FedEx has made extensive contingency plans, including arranging additional contract air lift and contract trucking to meet its customers needs. These measures have been undertaken as the FedEx Pilots Association (FPA) asks its members to vote whether to authorize a strike against FedEx.
    "This line of credit supplements our existing $1 billion credit line as additional resources to allow FedEx and its employees to meet its customers' needs during peak shipping season," said FDX Executive Vice President and Chief Financial Officer Alan B. Graf Jr.
    Federal Express, a subsidiary of FDX Corp., connects areas that generate 90% of the world's gross domestic product in 24-48 hours with door-to-door, customs-cleared service and a money-back guarantee. The company's unmatched air route authorities and infrastructure make it the world's largest express transportation company, providing fast, reliable and time-definite transportation of more than 3 million items to 211 countries each working day. FedEx employs more than 143,000 employees and has more than 44,400 drop-off locations, 619 aircraft and 41,500 vehicles in its integrated global network. The company maintains electronic connections with more than a million customers via FedEx PowerShip(R), FedEx Ship(R) and FedEx interNetShip(R). Federal Express reported revenues of $13.3 billion for its fiscal year ended May 31, 1998.
    FDX Corp., a $16 billion holding company, provides comprehensive transportation, logistics, and supply chain management solutions on a worldwide scale. FDX Corp.'s primary operating subsidiaries are Federal Express Corp., the world's largest express transportation company; RPS Inc., a business-to-business ground package carrier; Roberts Express Inc., a critical-shipment carrier; Viking Freight Inc., a less-than-truckload carrier operating principally in the western United States; and FDX Global Logistics.

     --30--LB/na*

     CONTACT:  FDX Corp., Memphis
               Media Relations, 901/395-5007

     KEYWORD:  TENNESSEE
     INDUSTRY KEYWORD:  TRANSPORTATION TRAVEL/AIRLINES