UPS Freight Extends Reliability Guarantee to Canada

On-Time Performance at No Additional Cost

RICHMOND, June 2, 2008 - UPS Freight (NYSE:UPS), which introduced its on-time performance guarantee in the United States in January, has expanded the guarantee to shipments moving in both directions across the Canada-U.S. border.

“The reliability guarantee is a direct result of UPS’s experience with freight, brokerage and customs clearance as well as our in-bond freight expertise,” said Rick Smith, UPS Freight’s Director-Canada. “It’s also a clear sign to our customers of the confidence we have in the changes made at UPS Freight.”

The new reliability guarantee, offered at no additional cost, applies to direct shipments between points in the United States (48 contiguous states) and points served by UPS Freight service centers in Calgary, Edmonton, Halifax, Moncton, Montreal, Toronto, Vancouver, Windsor and Winnipeg. It is being offered at a time of continued strong trade growth between the two countries; the U.S. Transportation Department says surface transportation trade totaled $45 billion in February, up 18% over the prior year.

The on-time service guarantee is available effective June 30 for less-than-truckload (LTL) customers on both sides of the border who ship using the current UPS Freight UPGF525 tariff. The new guarantee promises that customers can request a waiver of their freight charges if their shipment fails to arrive as scheduled. Detailed terms of the guarantee can be found in the tariff.

UPS Freight’s Canadian service includes: a pre-arrival system that speeds clearance at border crossings, minimizing delays; electronic transmission of customs documentation; complete online tracking from origin to destination with instant access to all customs documents, and customs delay alerts and 24-hour access to all shipping information.

Since acquiring the former Overnite Transportation Co. in April 2005, UPS has enhanced UPS Freight’s service portfolio and reliability, optimized its delivery network and invested significantly in new technology. As a result, the LTL and truckload carrier is aligned with the global operations and performance standards of UPS’s small package and supply chain services.

To improve the experience of UPS Freight’s customers, the company has equipped drivers with hand-held computers to track shipments from origin to destination, implemented a Dispatch Reservation System and purchased new rolling stock equipped with extensive decking systems and load bars to minimize the risk of damage. UPS Freight also has applied its Web-based tracking and proactive notification systems - Quantum View® and UPS WorldShip® - to allow freight customers to integrate their databases and shipping systems and more accurately plan for inbound and outbound shipments.

“Under UPS, we are achieving new levels of performance, transitioning into a value-added premium carrier,” said UPS Freight President Jack A. Holmes.

UPS Freight is one of the largest less-than-truckload (LTL) carriers and a leading truckload (TL) service provider in the United States with over 215 service centers and 17,400 employees. UPS Freight’s reliable, modern fleet of approximately 29,000 tractors and trailers offers a full range of regional and long-haul capabilities. UPS Freight also serves Canada, Mexico, Puerto Rico, Guam and the U.S. Virgin Islands. For more information visit www.upsfreight.com.