UPS Capital Triples Small Business Lending

ATLANTA, Jan. 31, 2006 - Illustrating its commitment to helping small businesses grow, UPS Capital, the financial services arm of UPS (NYSE:UPS), dramatically increased its lending activity last year through the government-guaranteed 7(a) loan program of the U.S. Small Business Administration.
For the fiscal year that ended Sept. 30, 2005, UPS Capital Business Credit, a unit of UPS Capital, facilitated 248 SBA 7(a) loans valued at more than $153.4 million. That activity placed UPS Capital Business Credit among the SBA’s Top 25 lenders as measured by dollar volume and more than tripled the number of SBA 7(a) loans and dollar volume facilitated in fiscal 2004.

“Small businesses are the engines that drive our economy’s growth and UPS Capital is committed to helping supply the financial fuel for these smaller UPS customers, just as we today facilitate their small package needs” said Bob Bernabucci, president, UPS Capital.

UPS Capital took a number of steps in 2005 to bolster its ability to deliver financial solutions to small companies. For starters, the company added personnel to its nationwide small business lending sales force. It also expanded its geographic participation in the SBA’s Preferred Lender Program (PLP), which slashes the amount of time and effort it takes for business customers to secure SBA loans. UPS Capital Business Credit has been designated a PLP participant in all of the SBA’s 75 districts covering the contiguous United States.

UPS Capital Business Credit also is a leading lender in the government-guaranteed loan programs of the U.S. Department of Agriculture and the Export-Import Bank of the U.S.

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 movement of goods, information and funds. Headquartered in Atlanta, Ga., 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 UPS.com.

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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.

UPS Capital loans are made in California pursuant a Department of Corporations California Finance Lenders License. Government guaranteed loans are offered through UPS Capital Business Credit, a subsidiary of UPS Capital Corporation. UPS Capital Corporation is neither an agent for, nor associate of, UPS Capital Business Credit for the purposes of originating, processing, underwriting or servicing government guaranteed loans (e.g., SBA, USDA or Ex-Im guaranteed loans). Products may not be available in all areas and may be modified based on requirements. Check with your UPS Capital or UPS Capital Business Credit representative for local availability. Credit availability is subject to approval. Insurance is offered through UPS Capital Insurance Agency, Inc. and through the following licensed agency affiliates: UPS Capital Insurance Agency, Inc. of California in California, UPS Capital Insurance Agency, Inc. of Massachusetts in Massachusetts and UPS Capital Insurance Agency, Inc. of Nevada in Nevada and Louisiana. Insurance products may not be available in all jurisdictions. C.O.D. Enhancement Services products are offered through UPS Capital Trade Protection Services, Inc. The C.O.D. Enhancement Services program is governed by the terms and conditions of the contract. Insurance products are governed by the terms and conditions of the policy. Certain limitations and exclusions may apply.

Contact Information

Laurie Mallis

UPS

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