UPS Granted Air Rights to Expand Service to Japan

Will Provide Connections to U.S. and China

TOKYO.- The U.S. Departments of State and Transportation today reached an agreement that will allow UPS (NYSE: UPS) and other air carriers to expand air operations to and from Japan.

The agreement provides UPS the authority to operate six daily flights between the U.S. and Nagoya, Japan, in addition to its daily service to Tokyo and Osaka. Nagoya, the fourth largest city in Japan, offers UPS significant opportunities to continue expanding its business in Asia. In addition, UPS will be able to connect these flights to its new air hub in Shanghai, China.

“With the world’s second largest gross domestic product, Japan is a tremendous opportunity for UPS’s customers worldwide,” said Alan Gershenhorn, president of UPS International. “The new access that comes with this landmark agreement will allow UPS to better serve customers in Japan and around the world and gain an even stronger foothold in the region.”

“I want to specifically recognize the U.S. and Japan delegations that worked many years to reach this agreement,” he continued. “We congratulate U.S. Deputy Assistant Secretary of State John Byerly and MLIT Deputy Director General Ryuhei Maeda and their entire teams for their hard work in achieving this success.”

“With the establishment of our hub in Shanghai and its formal opening next year, the opening of air lanes between Nagoya and Shanghai will improve our services to customers throughout Asia, especially China and Japan,” added Ken Torok, President, UPS Asia Pacific.

UPS has operated in Japan since 1987 and transitioned to a wholly owned international express delivery operation in 2004. The company’s operations cover 15 metropolitan areas, offering express delivery, customs brokerage and supply chain management services. UPS currently offers 78 weekly flights to and from Tokyo and Osaka.

Japan is one of the more than 40 countries and territories UPS serves in Asia. The company operates air hubs in Taipei, Hong Kong, Singapore and the Philippines and will formally open its hub in Shanghai in 2008.

UPS, which is celebrating its 100th anniversary in 2007, 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. To get UPS news direct, visit pressroom.ups.com/RSS.