About FedEx

FedEx Archives: 1997 Press Releases

( BW)(FEDERAL-EXPRESS)(FDX) Federal Express and Caliber System Antitrust Review Period Expires

    Business Editors

    MEMPHIS, Tenn.--(BUSINESS WIRE)--Dec. 8, 1997--Federal Express Corp. (NYSE:FDX) announced today that the 30-day waiting period required under the Hart-Scott-Rodino Antitrust Improvements Act for its agreement to acquire Caliber System Inc. expired Friday, Dec. 5, 1997. This completes the regulatory review under this Act.
    Stockholder meetings for Caliber System Inc. and for Federal Express are scheduled for Jan. 9, 1998 and Jan. 12, 1998, respectively.
    The combination of the two companies will permit their customers to take advantage of a broader portfolio of transportation, logistics and supply chain management services.
    Federal Express connects areas that generate 90% of the world's gross domestic product in 24-48 hours with door-to-door, customs-cleared service with a money-back guarantee. The company's unmatched air route authorities and infrastructure make it the world's largest express transportation company, providing fast and reliable services for more than 2.9 million items in 212 countries each working day. The company employs approximately 137,000 people and has more than 42,500 drop-off locations, 590 aircraft and 38,500 vehicles in its integrated global network. FedEx maintains electronic connections with more than 750,000 users via FedEx Powership(R), FedEx Ship(R) and FedEx interNetShip(SM).

    NOTE TO EDITORS: Federal Express press releases are available on
    the World Wide Web at http://www.fedex.com .

    FACT SHEET

    ACQUISITION

    On Oct. 5, 1997, the Board of Directors of Federal Express
    Corporation and the Directors of Caliber System Inc. approved a
    transaction that would result in FedEx and Caliber becoming
    wholly-owned subsidiaries of a newly formed holding company, FDX
    Corporation. The combined company will be a $15 billion
    powerhouse in global transportation, logistics and supply chain
    management.

    TRANSACTION

    If the transaction is completed, Caliber shareholders will
    receive 0.8 shares of FDX common stock for each share of Caliber
    common stock. The FedEx common stock held by FedEx stockholders
    will be automatically converted into an equal number of shares of
    FDX common stock.

    STRATEGIC BENEFITS

    FedEx and Caliber believe that the combination of the two
    companies will permit their customers to take advantage of a
    broader portfolio of services and choices at a level of excellence
    unmatched by any competitor. FDX was formed as the new parent
    company for both FedEx and Caliber because, in the judgment of
    FedEx management, it would be the most efficient way to
    strategically manage the operations of the two companies, while
    continuing to operate the distinct business units separately.

    FDX CORPORATION

    Following the transaction, FDX will become the new parent
    company for both FedEx and Caliber. FDX will derive all
    of its revenues from the operations of FedEx and
    Caliber and their respective subsidiaries. Shares of FDX
    will be listed on the New York Stock Exchange.

    With two independent networks serving the express and non-express
    markets through five distinct business units, FDX Corporation
    will be able to offer:

    -- fast, reliable and time-definite express delivery;

    -- expedited surface delivery of critical freight-shipments;

    -- business-to-business non-express delivery of packages;

    -- regional less-than-truckload (LTL) freight service; and

    -- information and logistics solutions.

    The newly formed FDX Corporation companies will employee
    approximately 170,000 people worldwide.

    CALIBER SYSTEMS INC.

    Caliber Systems Inc., with 33,500 employees and contractors and
    500 facilities worldwide, is a leading provider of value-added
    transportation, logistics and related information services. Its
    operating companies include RPS Inc., a business-to-business
    non-express package carrier; Viking Freight Inc., a supplier of
    regional freight service in the West; Caliber Logistics Inc., a
    contract logistics provider; Roberts Express Inc., a
    critical-shipment carrier; and Caliber Technology Inc., a
    producer of system-wide information services. Caliber System Inc.
    reported revenues of $2.7 billion for the year ended
    Dec. 31, 1996.

     --30--LB/na*

     CONTACT: Federal Express, Memphis
             Bill Margaritis or Greg Rossiter (Media), 901/395-5007
              or
              Becky Halvorson, (Investment Community), 901/395-3468

     KEYWORD: TENNESSEE
     INDUSTRY KEYWORD: TRANSPORTATION MERGERS/ACQ