FedEx Installs Post Office Drop Boxes in Fort Lauderdale

Business Wire, April 10, 2001

Business Editors

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--April 10, 2001

Broward County serves as test market for historic agreement

FedEx Corp. (NYSE:FDX) today installed the first FedEx Express drop box at a U.S. Postal Service location in Fort Lauderdale, Fla., launching the second phase of its drop box test market installation.

More than 30 drop boxes will be installed at post offices in Fort Lauderdale and other cities in Broward County this week beginning with today's installation at 1900 West Oakland Park Boulevard.

FedEx plans to begin the national roll-out of the drop box program in June 2001 and, over the course of the next 18 months, expects to place more than 10,000 drop boxes at post offices in approximately 120 U.S. metropolitan areas. FedEx installed the first test drop boxes in Charlotte, N.C. the week of March 5 as the first part of a two-phase test market roll out.

"The new FedEx Express drop boxes at local Postal Service locations will provide Fort Lauderdale customers, large and small alike, with greater choice, flexibility and convenience," said David F. Rebholz, FedEx Express executive vice president of operations and systems support. "The city's robust tourism industry as well as the presence of large technology companies make Fort Lauderdale an excellent test market for this historic alliance."

The additional FedEx drop boxes will provide more convenient self-service locations for the most popular express services, including FedEx First Overnight(R), FedEx Priority Overnight(R), FedEx Standard Overnight(R), and FedEx International Priority(R). FedEx will pay annual fees to the Postal Service for drop-box placements. After initial implementation, the Postal Service may make similar arrangements with other overnight shippers.

The Postal Service drop box program will expand the FedEx network of drop-off locations, which allows customers to drop off FedEx Express packages at about 36,000 self-service drop boxes plus 1,214 staffed FedEx World Service Centers(R) and 8,001 staffed FedEx Authorized ShipCenters(R) nationwide. The FedEx retail network serves more than 20 million customers each year, many of whom exclusively use the retail network to meet their shipping needs.

FedEx and the U.S. Postal Service have also executed an air transportation agreement that will launch in August 2001. FedEx Express will provide airport-to-airport movement of containers holding Postal Service Priority Mail, Express Mail and First-Class Mail. FedEx Express will provide air transportation for approximately 3.5 million pounds of Priority Mail, Express Mail and First-Class Mail every business day - the equivalent of about 30 wide-body DC10 aircraft filled with Postal Service shipments.

The two service agreements are expected to generate approximately $1 billion a year for FedEx, or about $7 billion over the term of the seven-year contracts.

About FedEx

With annual revenues of $20 billion, FedEx Corp. is the premier global provider of transportation, e-commerce and supply-chain management services. The company offers integrated business solutions through a network of subsidiaries operating independently, including FedEx Express, the world's largest express transportation company; FedEx Ground, North America's second largest provider of small-package ground delivery service; FedEx Freight, a leading provider of regional less-than-truckload freight services; FedEx Custom Critical, the world's largest provider of expedited, time-critical shipments; and FedEx Trade Networks, a provider of customs brokerage, consulting, information technology and trade facilitation solutions.

NOTE TO EDITORS: FedEx press releases are available on the World Wide Web at http://www.fedex.com.