FedEx Launches Industry's First Direct Connection Between Mainland China and Europe; New Service Enhances Worldwide Business Connectivity to Global Commerce

Business Wire, March 3, 2005

SHANGHAI, China -- FedEx Express, a subsidiary of FedEx Corp. (NYSE:FDX) and the world's largest express transportation company, has launched the express air cargo industry's first direct flight from mainland China to Europe. The flights, which will provide daily service from Shanghai, China to Frankfurt, Germany using a MD-11 freighter, provide numerous benefits for FedEx customers worldwide.

"Again, FedEx leads the express industry in connecting our global customers with the world's fastest growing market, China. The new flights emphasize the importance of China on the world business stage and the flourishing trade and political ties between China and the European nations," said Michael L. Ducker, executive vice president-international, FedEx Express. "This past year, Europe became China's number-one trading partner, and this new flight strengthens our leadership in facilitating trade between Asia, Europe and North America. These trade benefits are the direct result of the liberalization of China's aviation market and support our belief that the elimination of trade barriers encourages global economic growth."

The new China-Europe flight forms an important link in the FedEx network, connecting the U.S., Asia and Europe. It is part of a new westbound around-the-world flight that originates and terminates in Memphis, Tennessee, U.S.A., and provides connections via the FedEx AsiaOne(R) network to and from Japan, and more than 130 cities in northern and eastern China. Additionally, the flight links key manufacturing regions in Germany into the FedEx global network, while other parts of Europe connect with the FedEx EuroOne(R) network via the FedEx hub at Charles de Gaulle International Airport in Paris. Benefits for customers and global trade include:

--The doubling of air cargo capacity on westbound flights from Asia to Europe, with approximately 850,000 pounds of additional capacity available;

--The extension of cut-off times for cities in eastern China by up to six hours, giving customers extended time in the day to coordinate business worldwide;

--The simultaneous introduction of four weekly direct flights from Cologne, Germany to Memphis, which add a 20 percent increase in westbound trans-Atlantic capacity and provide more European cities with next day service to the U.S.;

--Service improvements, including reduced transit times and later customer pick-ups, for customers in the industrial heartland of Germany, as well as key markets in Belgium and the Netherlands;

--Greater capacity on trans-Pacific and trans-Atlantic routes, which encourages U.S. outbound and inbound trade and ensures that FedEx customers remain competitive in the global marketplace.

"The addition of a direct China-Europe connection to an already-enhanced FedEx European network gives FedEx customers at both ends of the trade route the fastest and most reliable service to one of the biggest marketplaces in the world," Ducker said. "Europe's demand for high-technology, high-value and time-sensitive products make air freight almost indispensable for fast and efficient trans-continental coverage."

As of March 25, 2005, FedEx will have authority to operate 23 flights a week out of China - more all-cargo flights to and from China than any other U.S. airline. Just last week, the U.S. Department of Transportation tentatively awarded FedEx three additional China flights, which would bring the total number of weekly FedEx China flights to 26 as of March 25, 2006.

About FedEx Corp.

FedEx Corp. (NYSE:FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $27 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its more than 250,000 employees and contractors to remain "absolutely, positively" focused on safety, the highest ethical and professional standards and the needs of their customers and communities. For more information, visit fedex.com.

About FedEx Express

FedEx Express, a subsidiary of FedEx Corp., connects areas that generate 90% of the world's gross domestic product in one to three business days with door-to-door, customs-cleared service and a money-back guarantee. The company's unmatched air route authorities and infrastructure make it the world's largest express transportation company, providing fast, reliable and time-definite transportation of approximately 3.2 million packages to more than 220 countries and territories each working day. FedEx Express employs more than 137,000 employees and has approximately 50,000 drop-off locations, 663 aircraft and more than 41,000 motorized vehicles in its integrated global network.

TRADE FACTS

--Asia-Europe Trade: As of November 2004, cumulative trading volumes between Asia and Europe rose 34.7% year-on-year reaching US$159.3 billion. This exceeds the goal of US$150 billion set by the European Union-China Summit in 2003 two years earlier than expected(1).