Leo Suggs of UPS Freight to Retire; New Senior Leadership Named

RICHMOND, July 31, 2006 - Leo Suggs, the president of UPS Freight, has announced he will retire at the end of this year and effective immediately will devote the next five months to a broad service quality initiative at the national trucking concern.

UPS has named Gordon Mackenzie, most recently the senior vice president and chief operating officer of UPS Freight, as president. Mackenzie had held the position of chief operating officer since he joined Overnite Transportation in 1996. UPS acquired Overnite in August of 2005 and subsequently rebranded the unit as UPS Freight.

Before joining Overnite, Mackenzie served as senior vice president and chief operating officer of Preston Trucking Company Inc., from 1993 to 1996. He also held various executive positions with Standard Trucking Company, Ryder/PIE Nationwide, Inc., and Transcon Lines, Inc.

Suggs, who has devoted almost 50 years of his life to the trucking industry, was named the chief executive officer of Overnite Transportation in 1996 and has been instrumental in Overnite’s transition to UPS Freight. Prior to joining Overnite, Suggs served as president and chief executive officer of Preston Trucking from 1993 to 1996 after having worked previously in various executive positions at Yellow Corp. and Ryder/PIE. Suggs began his career as a warehouseman while in college in North Carolina.

“Leo Suggs played a pivotal role in building Overnite into one of the four largest less-than-truckload carriers in the United States and he stayed on board with us to ensure a smooth integration and continued growth,” said Mike Eskew, UPS’s chairman and CEO. “The addition of UPS Freight bolstered our service portfolio and we expect Leo’s contributions during the balance of the year to help us further grow the business and serve our customers.”

Jack Holmes, a senior UPS manager who headed the UPS Freight transition team, will replace Mackenzie as senior vice president of operations at UPS Freight. Holmes has 27 years of experience at UPS.

Holmes began his UPS career in 1979 in West Chester, Pa., as a part-time employee. He became a package car driver in 1982 and was promoted to management in Philadelphia in 1983. He served in various operations, engineering and safety assignments in Alabama, Georgia, Utah and in the Chicago area before accepting his current position in 2005.

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.

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Norman Black

UPS

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