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July 13, 1998

Federal Express adds five new flights to meet increased demand at new Hong Kong Airport

Weekly frequencies raised from 16 to 21 to boost capacity by 25 percent

HONG KONG, JULY 13, 1998 - Federal Express Corporation (FedEx), the world's largest air express transportation company, announced today that it has started operating five new weekly flights between Hong Kong and the FedEx Asia Pacific hub in Subic Bay, Philippines. This is in order to meet the increased demand for express services at its new facilities at the Hong Kong International Airport at Chek Lap Kok (CLK).

"The successful start-up of our express facilities at the Asia Airfreight Terminal (AAT) since opening day has substantially enhanced our efficiency, enabling us to deliver faster and more reliable service for customers in Hong Kong, and for shipments from around the region and the world," said Michael L. Ducker, president of FedEx Asia Pacific Division.

"The five new weekly flights, which started last Saturday, are on top of FedEx's previous 16 weekly flights and utilizes existing aircraft already operating in Asia. We have added this 25 percent capacity to ensure that customers receive the excellent service they have come to expect," said Ducker.

Hong Kong is linked to FedEx's Asia Pacific Hub at Subic Bay, Philippines via its unique AsiaOne network which provides unmatched connectivity among 16 cities throughout Asia. With the additional service, FedEx is doubling its daily frequencies from 1 to 2 flights between Hong Kong and Subic Bay, enabling more shipments between Hong Kong and other parts of Asia, as well as the rest of the world.

"Our dedicated express facilities at the new CLK airport in Hong Kong enable FedEx to sort, customs clear and distribute shipments under one roof, greatly streamlining our inbound shipment handling process. Also, our Electronic Data Interchange (EDI) technology system facilitates more efficient customs clearance capabilities. As a result, we have been able to save up to two hours in processing inbound shipments here at the new airport in CLK compared to the previous process at Kai Tak," Ducker explained.

Ducker noted that FedEx refined its operations at CLK through extensive trial runs and simulations prior to the opening of CLK in conjunction with the Airport Authority and customs authority. FedEx was the first foreign flag and first cargo carrier to make an inaugural flight in the CLK airport during a full-scale trial test of the airport's facilities in the mid-June.

Occupying a 2,500-square-meter warehouse space at AAT, FedEx's facilities at CLK house a dedicated sorting operation and a dual conveyor belt system with the capacity to handle 9,000 documents and 6,000 boxes per hour. The company has also leased a 750-square-meter office space for employees from its gateway operations department. Approximately 100 employees are working at the airport facility.

FedEx currently serves more than 30 countries and territories in the Asia Pacific market with approximately 5,000 employees. The company provides the most extensive trans-Pacific airlift of any major competitor. Operating its own wide-bodied MD-11, DC-10 and A310 aircraft, FedEx offers over 260 flights per week to the following locations: Bangkok, Beijing, Cebu, Hong Kong, Jakarta, Kaohsiung, Kuala Lumpur, Manila, Osaka, Penang, Seoul, Shanghai, Singapore, Subic Bay, Taipei, and Tokyo, as well as to destinations in the U.S.

Federal Express, a subsidiary of transportation powerhouse FDX Corporation, connects areas that generate 90 percent of the world's gross domestic product in 24 to 48 hours 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 more than 3 million items in 211 countries each working day. FedEx has more than 141,000 employees, 43,500 drop-off locations, 610 aircraft and 40,500 vehicles in its integrated global network. The company maintains electronic connections with more than a million customers via FedEx PowerShip®, FedEx Ship®, and FedEx interNetShipSM. Federal Express reported revenues of US$13.3 billion for its fiscal year ended May 31, 1998.

* Certain restrictions apply

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