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FedEx Archives: 2002 Press Releases

( BW)(TN-FEDEX)(FDX) FedEx Trade Networks Renames Tower Group and Launches New International Shipping Tools

    Business Editors & Transportation Writers

    MEMPHIS, Tenn.--(BUSINESS WIRE)--June 20, 2002--

FedEx Trade Networks to form new company structure and leverage FedEx brand
    FedEx Trade Networks, Inc., a subsidiary of FedEx Corp. (NYSE:FDX), will reorganize its company structure, implement a new branding strategy and introduce new international shipping tools, to provide better access and convenience to customers. These changes allow companies of all sizes to depend on the FedEx portfolio of services to help them compete faster and more efficiently around the world.

    "Our customers increasingly look to global sourcing and selling to simplify their supply chains and open new markets," said G. Edmond Clark, president and chief executive officer of FedEx Trade Networks. "The time is right for us to make improvements in infrastructure and introduce new technologies and services that allow FedEx Trade Networks to be the leading facilitator of trans-continental trade."

    Branding and Organizational Changes

    As of July 8, FedEx Trade Networks (FTN) will make the following changes:


--	Tower Group International, Inc., an FTN subsidiary, will change its name to FedEx Trade Networks Transport & Brokerage, Inc. This unit will continue to offer customers superior customs brokerage, international freight forwarding, and other services to assist with international shipping.
--	FedEx Trade Networks will create a new subsidiary, FedEx Trade Networks Trade Services, Inc., which incorporates the duty and tax data services of current subsidiary, Worldtariff, will offer new international consulting services, and introduce a new set of integrated international shipping resources known as Global Trade Tools. FTN has hired Mark Neville, previously the partner in charge of the KPMG Trade and Customs Practice, to lead the new Trade Services unit.

International Shipping Tools for Large Customers

Global Trade Tools(SM) is a set of applications designed to streamline, automate, and simplify the international shipping process for large customers who require the special capabilities of FTN. Global Trade Tools is directly integrated into a customer's supply chain management or logistics system, providing a timely solution to previously paper-intensive and lengthy international shipment processing. Customers supply shipment information via a direct computer link and Global Trade Tools "processes" the international transactions. Its features include everything from Harmonized System (HS) classification to document preparation.

In addition to the integration resources offered to large customers by FTN, FedEx Express offers FedEx(R) Global Trade Manager, a web-based application designed to help small and medium sized businesses. FedEx Express is the first to offer a carrier-provided online duty and tax estimator, available through FedEx(R) Global Trade Manager, which can be accessed via fedex.com.

Other Significant Developments


--	FedEx Trade Networks acquired the express customs clearance operations of Fritz Companies, Inc. in Memphis, Tenn., Oakland, Calif., Anchorage, Alaska and Springfield, Mo., in 2002, making FTN America's largest customs broker. These newly acquired operations support the international services of FedEx Express.
--	FedEx Trade Networks created new alliances with freight forwarders in Europe (Frans-Maas) and Asia (S-Net Holdings) in 2002, offering improved service and expanded geographic coverage.
--	The company introduced two new services in 2002, FedEx Trade Networks Ocean-Ground Distribution(SM) and FedEx Trade Networks Air-Ground Distribution(SM), which offer ocean or air transportation from Asia and Europe to multiple points within the US, combined with services offered by other FedEx operating companies, including FedEx Freight, FedEx Ground and FedEx Express.
--	FedEx Trade Networks formed a strategic alliance with NextLinx Corporation (NextLinx) in 2000, a leading provider of global trade management solutions. The alliance included an equity investment by FedEx Corp. and a special licensing agreement with FTN. NextLinx is a supplier of content and technology for Global Trade Tools.

FedEx Trade Networks will now offer services through its new Transport & Brokerage and Trade Services units as well as Caribbean Transportation Services, Inc., the largest heavyweight airfreight forwarder between the U.S. and Puerto Rico. Caribbean Transportation Services, which also offers service to the Dominican Republic, will retain its current identity.

About FedEx

With annual revenues of $20 billion, FedEx Corp. (NYSE:FDX) is the premier global provider of transportation, logistics, e-commerce and supply chain management services. The company offers integrated business solutions through a network of subsidiaries operating independently, including FedEx Express, the world's largest express transportation company; FedEx Ground, North America's second-largest provider of small-package ground delivery service; FedEx Freight, the largest U.S. provider of regional less-than-truckload freight services; FedEx Custom Critical, the world's largest provider of expedited time-critical shipments; and FedEx Trade Networks, a provider of customs clearance, international freight forwarding and trade facilitation.



Fact Sheet
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                         FedEx Trade Networks

                            G. Edmond Clark
                 President and Chief Executive Officer

A subsidiary of FedEx Corp., which simplifies international logistics
for companies of all sizes. Core competencies offered include Customs
Brokerage, International Freight Forwarding and Trade Facilitation.


FedEx Trade Networks Transport & Brokerage

Gerald P. Leary
Executive Vice President, FTN
President, Transport & Brokerage

Formerly Tower Group International, FedEx Trade Networks Transport &
Brokerage offers the best options in customs brokerage, international
freight forwarding and other international trade solutions.


FedEx Trade Networks Trade Services

Mark K. Neville
Vice President, FTN
President, Trade Services

FedEx Trade Networks Trade Services will incorporate duty and tax data
services of current subsidiary, WorldTariff, and will offer new trade
consulting services as well as a new set of international shipping
applications known as Global Trade Tools(SM).


Caribbean Transportation Services
  A FedEx Trade Networks Company(SM)

Rick Faieta
President & CEO

A FedEx Trade Networks subsidiary and the largest heavyweight
airfreight forwarder between the U.S. and Puerto Rico, which also
offers service to the Dominican Republic.

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Alliances

Frans-Maas: Koninklijke Frans Maas Groep N.V. is an international
logistics company with a broad spectrum of services. Frans Maas offers
a complete range of international freight-forwarding activities and
logistics services, including goods flow management in complex supply
chain management projects. Frans Maas serves the entire continent of
Europe, operating a network of 178 group-owned locations in 26
countries with 7,500 employees.

S-Net Holdings: S-Net Freight (Holdings) Pte Ltd (S-Net) is a
Singapore-based forwarder providing global air transportation,
logistics management and customs brokerage services for
business-to-business shipments. Established in 2001, S-Net provides
its services from 22 locations in 13 Asian countries.

CDS: Capital Distribution Services (CDS) founded in 1990, is an
established ocean freight forwarder. CDS pioneered ocean forwarding in
China. CDS has offices in 38 locations in 15 countries.

NextLinx: NextLinx Corporation is a leading global trade management
solutions provider, assisting companies in automating and accelerating
the exporting, importing and shipping of any product to any country in
the world. It was the first to build the industry's most comprehensive
and accurate source of information; applications and transaction
services for landed costs, government trade regulations and logistics
execution available instantaneously over the Internet.


New Services

Global Trade Tools(SM): A set of trade applications designed to
streamline international trade management for large exporters. When
customers integrate Global Trade Tools into their supply chain
management or logistics system, they automate, simplify and expedite
the international shipping process, with real time access to
world-class trade data when and where they need it. By providing
decision support data and automated shipping support, Global Trade
Tools allows customers to save time and money. Its features include:

	   --  Harmonized System (HS) classification assistance so shippers
        can determine the proper HS number needed to classify goods
        for customs clearance at the shipment destination.

	   --  Duty and tax information that allows shippers to calculate
        taxes that apply to imports between 42 countries, including
        customs duties, excise taxes, Value Added Taxes (VAT), Most
        Favored Nation (MFN) duty rates and preferential import
        programs.

	   --  Denied Party Screening, which simplifies the search for
        unacceptable trading partners, as identified by US federal
        agencies.

FedEx Trade Networks Ocean-Ground Distribution(SM) / FedEx Trade
Networks Air-Ground Distribution(SM): Introduced in February 2002,
these two new services are fully integrated transportation options,
which allow customers to choose from a variety of transportation
options offered by the FedEx family of companies. By bundling these
services, FedEx Trade Networks can use ocean or air transportation to
provide customers with customized and cost-effective solutions that
enable them to ship from Asia and Europe to multiple destinations
within North America, all backed by FedEx reliability and visibility.
These services are most suitable for customers whose variety of
transportation needs may range from deferred to express. FedEx Trade
Networks Ocean-Ground Distribution and FedEx Trade Networks Air-Ground
Distribution include services from FedEx Express, FedEx Ground, and
FedEx Freight.

Headquarters       Memphis, Tenn.

Founded            February 2000

Service Area       Worldwide, from over 330 locations

Workforce          More than 3,400 employees

Media Contact      Jennifer McGowan
                   305/392-3982
                   jmcgowan@fedex.com

    --30--AC/na*

    CONTACT: FedEx
             Public Relations:
             Jennifer McGowan, 305/392-3982
             jmcgowan@fedex.com
             www.fedex.com

    KEYWORD: TENNESSEE CALIFORNIA ALASKA MISSOURI INTERNATIONAL EUROPE
CANADA ASIA PACIFIC LATIN AMERICA AFRICA/MIDDLE EAST
    INDUSTRY KEYWORD: AIRLINES TRANSPORTATION
    SOURCE: FedEx