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Overnite Becomes UPS Freight


Transit Times Improved, Technology Upgrades Underway

ATLANTA, Feb. 28, 2006 - UPS (NYSE:UPS) today unveiled UPS FreightSM, marking another key step in the continued integration of Overnite® Corporation into the UPS brand.

Customers will begin seeing the new uniforms and newly branded trucks May 1. The rebranding includes a move to the UPS logo; new colors - a gray reminiscent of the Overnite gray combined with UPS’s signature brown, and the launch in May of a new Web site for shipping and tracking. The facilities and fleet, which includes 22,000 trailers, will be rebranded to UPS Freight over the course of several years. UPS Freight will continue to operate independently of the UPS package delivery network.

The transition to UPS Freight has led to the deployment of new technology, most significantly the introduction of UPS’s DIAD, the hand-held computer used by drivers that will improve tracking and customer responsiveness.

The rebranding of Overnite will serve as a visible demonstration of UPS’s strategy to provide its customers with a full range of supply chain solutions. UPS acquired Overnite, a leading less-than-truckload (LTL) and truckload (TL) carrier, and its Motor Cargo® subsidiary, a regional carrier that operates in the western United States, in August 2005.

“We are taking the best of Overnite Transportation and Motor Cargo and melding it with UPS’s expertise and capabilities for the benefit of customers,” said Leo Suggs, Overnite’s CEO and president. “UPS is known for its technology, its operational expertise and its extensive service options and reliability. We are bringing those same features to our LTL customers. The UPS brand combined with t he talents and skills of our employees will increase our ability to attract new customers and creat e greater value for existing customers. It’s a potent combination.”

The transition to UPS Freight will include the completion of the restructuring of Overnite and Motor Cargo into a single integrated freight network. In the past year alone, transit times across 3,360 lanes nationwide have been improved. Over the next several months, Motor Cargo’s operations in 10 western states will be fully integrated into the UPS Freight network, leading to a significant number of additional lane enhancements, improved service and enhanced geographic reach.

“This is a huge opportunity for UPS customers,” added Kurt Kuehn, UPS senior vice president, worldwide sales and marketing. “Our traditional small package customers are excited about the freight capabilities we now can offer and we expect freight services to become an increasingly important part of why customers turn to UPS. In addition, this will allow UPS to achieve our goal of growing the overall business and sustaining our competitive advantage in the global marketplace.”

UPS conducted a successful sales pilot at the end of 2005 in which UPS’s package delivery sales force sold ground freight services. The pilot clearly demonstrated the synergy between Overnite and UPS customers and the opportunity to sell a combined solution of small package and ground freight services. UPS will have completed training for the rest of the small package sales force in time for the May 1 rebranding.

In addition to rebranding Overnite Transportation and Motor Cargo facilities and fleets, other highlights include:

Tracking of freight shipments via the web will be available in May and on this fall.
Rollout of the DIAD during 2006, which will greatly enhance shipment visibility.
Opening of a new hub in Newburgh, N.Y., improving transit time between the Northeast and Mid-Atlantic regions.
Renaming the product portfolio to consist of three main service categories: UPS Freight LTL, UPS Freight Truckload and Specialty Solutions.
UPS Freight LTL. In addition to the standard time-in-transit, customers who need faster transit times or day and time-definite commitments can choose additional options: guaranteed or urgent.
UPS Freight Truckload will offer Dedicated Capacity and Dedicated Fleet options.
Specialty Solutions is the unit that will continue to provide ancillary services such as Trade Show services, temperature-controlled freight movements and other freight management services.
UPS Freight is the go-to-market name for UPS Ground Freight, Inc., an operating subsidiary of UPS. Based in Richmond, Va., UPS Ground Freight, Inc. serves customers in the LTL and TL segments with operations in the United States, Canada, Mexico, Puerto Rico and Guam.

UPS is the world’s largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the flow of goods, information and funds. Headquartered in Atlanta, UPS serves more than 200 countries and territories worldwide. UPS’s stock trades on the New York Stock Exchange (UPS), and the company can be found on the Web at

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Except for historical information contained herein, the statements made in this release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements, including statements regarding the intent, belief or current expectations of UPS and its management regarding the company’s strategic directions, prospects and future results, involve certain risks and uncertainties. Certain factors may cause actual results to differ materially from those contained in the forward-looking statements, including economic and other conditions in the markets in which we operate, governmental regulations, our competitive environment, strikes, work stoppages and slowdowns, increases in aviation and motor fuel prices, cyclical and seasonal fluctuations in our operating results, and other risks discussed in the company’s Form 10-K and other filings with the Securities and Exchange Commission, which discussions are incorporated herein by reference.


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