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March 8, 2000

FedEx to Collaborate with SCS in SCM Solution Services Pact Brings Together IT-Logistics Leader and Major System Integrator Affiliation to Offer Highly Competitive SCM Solutions to Business Clients

TOKYO, March 8 - Federal Express Corporation (FedEx), the world's largest express transportation company, and Sumisho Computer Systems (SCS) announced today that the two companies have agreed to collaborate in providing supply chain management (SCM) solutions to corporate customers in the domestic market.

The agreement will benefit both companies by making it possible for FedEx to broaden its base of Japanese business clients who require SCM solutions, and SCS to enhance its global logistics network. The two companies will jointly work to provide supply chain consultation, system integration services and global logistics networks, to enable customers to enhance business efficiency and increase competitiveness in the global market.

"The combined power of FedEx and SCS offers customers leading-edge systems integration with FedEx's worldwide logistics expertise in an age of globalization and digitization," said David J. Ross, FedEx North Pacific vice president. "Through this collaboration, both companies aim to expand business opportunities, bringing the best e-SCM solutions to Japanese customers."

"It is a great honor of us to work with FedEx," said Hiroji Iwasaki, SCS managing director and general manager of network division. "At SCS, we have experience and in-depth understanding of Japanese customer needs with regards to customs, tax systems, and business requirements. Together with FedEx, we can now provide integrated services to our Japanese customers who are striving for the best SCM solutions for their global operations."

In order to provide a competitive advantage to Japanese manufacturers, such as automobile and electronics, both companies plan to cooperate in developing integrated SCM solutions from procurement to marketing and sales management.

Federal Express Corporation began operations in Japan in 1984 and started overnight service between Tokyo and the U.S. The company gradually expanded its service network to cover Osaka and Nagoya, and now provides same-day delivery service by its own flights utilizing both New Tokyo International Airport (NRT) and Kansai International Airport (KIX). In 1995, FedEx opened its Asia Pacific Hub in Subic Bay, the Philippines, and launched AsiaOne, its new intra-Asia overnight delivery network connecting major commercial and financial centers in the region. FedEx Japan has 1,500 employees, 18 Stations and four World Service Centers nationwide.

Sumisho Computer Systems (SCS) is industry-leading solutions provider in Japan, with over 1,300 employees. Established since 1969, the company provides wide range of information services such as software development, information processing service, communication and networking services, systems integration services, systems management services and sales of package software and hardware products. The company is well known for its successful "ProActive" ERP package for large and mid-size corporate customers, which is tailored to meet the business customs and customer needs that are unique to Japan. Currently, about 1,300 domestic businesses in various industries use the ProActive ERP package.

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