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August 28, 2000

FedEx Announces Five Service Enhancements for New Fiscal Year

Reaffirms Its Leading Position in the Taiwan International Express Market

TAIPEI, August 28, 2000 - As Taiwan's trade market becomes more prosperous and export volume/value keeps soaring, FedEx, with a growth rate exceeding the industry average of 20 % over the last three years, announced five service enhancements for its fiscal year 2001 at a media briefing today. By adding an array of competitive services for customers in Taiwan, these initiatives have further reaffirmed its market leadership of providing customers with fast and reliable express transportation service.

  1. New daily connections between Europe and Asia extend the cut-off time to Europe for 2 hours from 3:00PM to 5:00PM.
  2. For customers in the Greater Taipei area who wish to send express parcels to North America (west coast excluded), FedEx has extended the cut-off time to 4:00PM. Under the principle of not changing the flight schedule, FedEx has re-engineered its ground operation to make the service possible.
  3. With daily flights from Kaohsiung to Taipei, goods of southern Taiwan are now to be cleared in Kaohsiung, which significantly extends the cut-off time to 3:00PM.
  4. FedEx's Authorized Shipping Centers provide high quality and reliable International Priority(IP) services for package up to 25 kg. FedEx's partners include Eslite Bookstores, Kodak Express and Sir Speedy.
  5. FedEx will hold its "True Heart Ambassador Campaign Year 2000" in the coming month, demonstrating FedEx's continued commitment in maintaining good relationships with customers and improving its couriers' service quality.

Beginning August 28, FedEx will re-engineer its transportation network to meet the increasing demand between Europe and Asia. There will be five direct MD-11 flights per week between the FedEx EuroOne hub at Charles de Gaulle (CDG) to the FedEx AsiaOne hub at Subic Bay (SFS). Additionally, ten weekly A310 flights will connect Europe, the Middle East, India and Asia, forming a "criss-cross" pattern between FedEx's hubs at CDG, Dubai, Mumbai, Bangkok and SFS. This service enables Taiwan customers to deliver their goods to Europe with extended cut-off time of 5:00PM, making FedEx Taiwan the first express company that offers daily flights to Europe with the latest cut-off time in the market.

Jimmy Chen, Managing Director of FedEx Taiwan, pointed out that "The express market in Taiwan is expanding rapidly. FedEx has enjoyed growth rates exceeding the industry average of 20 % over the last three years. We are highly confident of the Taiwan express market and have continuously expanded our staff and infrastructure. Our staff has now been expanded to over 800 employees, and vehicles have been increased to over 250. Currently, FedEx headquarters in Taiwan is also undergoing expansion construction. Most importantly, the transshipment center in Terminal 2 is currently under construction. Once completed, the FedEx transshipment center will be enlarged from 1,682 square feet to over 5,000 square feet. This expansion will significantly help to increase the handling capacity of Taiwan as a transshipment center and to promote the integral role of Taiwan transshipment center in the island's trade-based economy."

FedEx is very optimistic about the international express market. According to Boeing forecast, the annual growth rate for world air passenger travel will grow by an average of 4.7% over the next 20 years, while air cargo is projected to grow at 6.4% during this time period. The Civil Aeronautics Administration (CAA) figures indicate that Taiwan' s local air cargo market (mail excluded) has shown an annual growth rate of 16.22% since 1993. Both indicators show that the outlooks of the international and local express industry are optimistic.

To respond to the market's time-definite needs, FedEx keeps improving to provide faster and more reliable services, which include:

Starting September 4, FedEx will extend its cut-off time for U.S. East Coast from 3:00PM to 4:00PM for customers in the Greater Taipei area. "In order to fulfill FedEx's commitment to its customers, FedEx successfully extended the cut-off time by re-engineering its ground operations. Our FedEx team has done an excellent job in making these service enhancements for valued Taiwanese customers possible." said Jimmy.

Beginning mid-September, goods will be able to be cleared in Kaohsiung Airport, for all destinations of Asia, America or Europe. This procedure will significantly extend the cut-off time in Kaohsiung from 11:30AM to 3:00PM. Tainan customers can also enjoy a later cut-off time extended from 10:30 AM to 2:00PM. FedEx provides daily flights from Kaohsiung to Taipei from Monday to Friday, enabling Southern Taiwan customers to enjoy even more time definite and reliable services. FedEx will be the first and the only integrated carrier offering service to and from the Kaohsiung Airport, benefiting customers in the Southern as well as the entire Taiwan area.

According to a recent study released by ACNielsen on individuals who used drop-off services in the last three months, the top six key factors influencing their decisions to use or not to use drop-off services are safety/reliability, delivery time, tracking services, convenient location, price and the express companies' reputation. Most of the shipments are light shipments and over 60% of drop-offs are for business purposes. Based on the survey results, FedEx now provides customers with shipping centers with high quality and convenient services to meet the needs of the small and medium enterprises and personal shippers. The shipping centers offer International Priority services for shipments up to 25kg. FedEx's partners include Eslite Bookstore, Kodak Express and Sir Speedy,

Beginning September, FedEx will hold its annual "True Heart Ambassador" campaign. The campaign will last for one month aiming at encouraging its couriers to provide courteous, helpful and friendly services. Last year's campaign was well received by customers, receiving over 12,000 votes. This year, FedEx will hold this campaign for the third year based on the spirit of "FedEx will continue to work hard in return for your true heart encouragement."

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