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September 21, 1999

FedEx signs agreement with Shenzhen Airport (Group) Co.

Launches first air express service for Shenzhen Huangtian International Airport

Shenzhen, September 21, 1999 - Federal Express Corporation (FedEx), the world's largest air express transportation company, today signed a Ground-Handling Agreement with Shenzhen Airport (Group) Co. Starting November 2, 1999, FedEx will operate five weekly flights to and from Shenzhen's Huangtian International Airport.

The agreement was signed by Eddy Chan, FedEx's regional vice president for Mid-Pacific, China and Taiwan, and Mr Lu Shenghai, president of Shenzhen Airport (Group) Co. at Wuzhou Guest House, Shenzhen. Among the distinguished guests witnessing the signing ceremony were Shenzhen Vice Mayor Zhuo Qing Rui; Wang Wengui, Shenzhen Municipal Transportation Bureau Director General; Buo Deyuan, vice president of Shenzhen Investment Holding Corporation; Zeng Lihuang, director of Shenzhen Municipal Border Office; and Michael Ducker, FedEx Asia Pacific Division President.

"As the important gateway for southern China, Shenzhen will be an integral part of our China, Asia Pacific and global express transportation networks," said Mr. Ducker. "We are grateful for the support of Shenzhen Municipal Transportation Bureau, Shenzhen Airport Customs and Shenzhen Airport (Group) Co. in helping to launch the new FedEx Shenzhen flight. This new service will provide substantial benefits to the exporters and importers of the Pearl Delta Region by connecting southern China to over 210 economies worldwide via our integrated global network."

FedEx will operate DC-10 and MD-11 aircraft on its five weekly flights linking Shenzhen to the U.S., China's largest export country, as well as 17 major Asia Pacific commercial cities via the FedEx Asia Pacific Hub in Subic Bay, Philippines.

"We are confident that our new services will contribute significantly to sustained economic growth in southern China -- Shenzhen and Guangdong in particular," commented Mr. Chan. "Shenzhen has spared no efforts in stimulating the development of its industries, particularly the high-tech sector. These high-tech companies can now rely on FedEx to provide them with fast and reliable, door-to-door service worldwide."

This new Shenzhen flight further extends FedEx's network in China where the company currently operates express services to Beijing and Shanghai. As the only U.S. express transportation company flying its own aircraft to and from destinations in China, FedEx began its services to Beijing and Shanghai in March 1996.

"We're pleased to finalize this agreement with FedEx," said Mr. Lu in his speech. "With the new service, we expect to consolidate Shenzhen Airport's position as a major air cargo center in Southern China and a significant international transshipment center in the region."

Opened at the end of 1991, the Shenzhen Huangtian International Airport established an air cargo center. It is equipped with the most advanced container cargo processing systems. These systems can handle up to 250,000 tons annually. The cargo center covers 30,000 square meters, with a special transport plane hanger and an additional area of 200,000 square meters reserved for other cargo facilities. In 1997, the Civil Aviation Administration of China (CAAC) named Shenzhen airport one of the top four air cargo centers in north China. The cargo transportation volume in Shenzhen airport ranked fourth in 1996 across China. In 1998, passengers numbered 5.15 million. Shenzhen connects to 56 cities through 23 airlines.

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