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FedEx Archives: 2002 Press Releases

( BW)(PA-FEDEX-GROUND)(FDX) FedEx Ground Completes National Expansion of FedEx Home Delivery; Small-Package Ground Carrier Delivers on its Promise to Provide Residential Service to Virtually the Entire U.S.

    Business Editors/Transportation Writers
    NOTE TO MEDIA: Multimedia assets available

    PITTSBURGH--(BUSINESS WIRE)--Sept. 17, 2002--FedEx Ground, a subsidiary of FedEx Corporation (NYSE:FDX), today announces the opening of 50 new FedEx Home Delivery terminals, expanding coverage for the industry's only dedicated residential delivery service to virtually the entire U.S. population. These new openings mark the completion of FedEx Ground's accelerated expansion plan to meet customer demand for a residential shipping alternative and demonstrate the company's commitment to long-term growth.

"With FedEx Home Delivery now available nationwide, we are able to provide FedEx customers with a complete ground solution to meet their residential shipping needs," said T. Michael Glenn, executive vice president of Market Development and Corporate Communications for FedEx Corp. "This expansion reinforces our commitment to grow business through new service offerings and increased cross-selling of services."
Designed to meet the needs of catalogers and online retailers, FedEx Home Delivery has been an important contributor to FedEx Ground's strong volume growth. For the quarter ended May 31, 2002 (fourth quarter, fiscal 2002), FedEx Ground reported a 21 percent year-over-year increase in average daily package volume, one-third of which was attributed to FedEx Home Delivery. After launching the service in March 2000, FedEx Ground accelerated its rollout of FedEx Home Delivery by more than a year in response to demand by residential shippers.

    "With a fully expanded network and unmatched service options, FedEx Home Delivery has significant growth potential," said Daniel J. Sullivan, president and chief executive officer of FedEx Ground. "In the past year alone, the number of shippers has tripled to our current customer base of more than 22,000."

    Delivering Unmatched Service, Flexibility and Value

    FedEx shippers such as Tupperware and Shop at Home and their residential customers have benefited from FedEx Home Delivery's cost-effective, customer-friendly service and premium shipping options, as well as the ground residential delivery industry's first Money-Back Guarantee. The latest expansion enables business-to-consumer shippers like these to reach their customers virtually anywhere in the U.S. with this innovative residential shipping solution.

Tupperware Corporation, the $1.1 billion multinational company supplying premium food storage, preparation and serving items, began shipping with FedEx Home Delivery when the service first was introduced.

"As a long-time user of FedEx services, I knew the FedEx name was synonymous with consistent, personalized deliveries," said Mitch Felts, distribution director for Tupperware. "Timing and presentation are crucial in the direct selling industry and FedEx Home Delivery has proved its ability to meet and exceed the needs of our customers. The service has more than established itself as a viable option in the residential delivery business -- it has grown into a considerable force."
Shop at Home, Inc., the nationally televised shopping service based in Nashville, Tenn., has been using FedEx Home Delivery since March 2001.

    "Most appealing for us is that more of our customers receive face-to-face deliveries with the standard evening and Saturday delivery hours," said Robert Wales, executive vice president of operations for Shop at Home, Inc. "Not only does FedEx Home Delivery offer a superior quality residential delivery service, but also they have provided a number of customized solutions to issues unique to our business. I am pleased that this final expansion will allow our customers throughout the United States to receive their purchases via FedEx Home Delivery."

    About FedEx Home Delivery and FedEx Ground

    Launched by FedEx Ground in March 2000, FedEx Home Delivery is the only ground service dedicated exclusively to residential delivery and was the first to offer a Money-Back Guarantee. Created to provide a better ground delivery solution for the residential market, FedEx Home Delivery offers shippers and customers the most comprehensive level of service, including standard evening and Saturday delivery as well as premium service options including signature, day-specific and guaranteed appointment delivery.

FedEx Ground has a network of more than 500 distribution hubs and local pickup-and-delivery terminals throughout the United States and Canada. In this latest FedEx Home Delivery expansion, FedEx Ground co-located 49 of the 50 new FedEx Home Delivery terminals with existing FedEx Ground terminals to better leverage its network infrastructure. FedEx Ground reported annual revenue of $2.7 billion in fiscal year 2002.

About FedEx Corporation

With annual revenues of $21 billion, FedEx Corp. is the premier global provider of transportation, 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.

New Terminal Openings

The 50 new facilities are located in the following cities:



Alabama              Kentucky              New Mexico
Evergreen            Bowling Green         Farmington
                     Hazard                Roswell
Alaska               Paducah
Anchorage                                  New York
                     Louisiana             Long Island
Arizona              Alexandria            Plattsburgh
Yuma                                       Watertown
                     Michigan
Colorado             Cadillac              North Dakota
Grand Junction       Gaylord               Fargo
                     Iron Mountain         Grand Forks
Hawaii
Honolulu             Minnesota             Oklahoma
                     Brainerd              Enid
Idaho                Mankato
Pocatello            Willmar               South Dakota
Twin Falls                                 Rapid City
                     Mississippi
Illinois             McComb                Texas
Effingham                                  Abilene
                     Missouri              Amarillo
Iowa                 Rolla                 Beaumont
Fort Dodge                                 Brownsville
Mason City           Montana               Bryan
Ottumwa              Billings              Lubbock
Spencer                                    Lufkin
                     Nebraska              Midland
Kansas               Grand Island          Victoria
Dodge City                                 Waco
Independence
Salina                                     Virginia
                                           Emporia

Certain statements in this press release may be considered forward-looking statements, such as statements relating to management's views with respect to future events and financial performance. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic and competitive conditions in the markets we serve, matching capacity to volume levels and other factors which can be found in FedEx Corp.'s and its subsidiaries' press releases and filings with the SEC.

All press materials related to this announcement are available on the Internet at fedex.com.

    --30--jr/sf*

    CONTACT: FedEx Corporation
             Allison Sobczak, 412/859-5498 (Media)
             Jim Clippard, 901/818-7468 (Investor)
             www.fedex.com

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