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April 5, 2000

FedEx doubles Hong Kong's intra-Asia capacity to handle greater package volume

Flies wide-bodied MD-11 to cater to the ever-increasing demand for heavyweight shipments in Asia

HONG KONG, April 5, 2000 - Federal Express Corporation (FedEx), the world's largest express transportation company, announced today that it has nearly doubled its intra-Asia capacity for the Hong Kong market. This initiative demonstrates FedEx's commitment to further strengthening its express service in Hong Kong.

Beginning April 3, FedEx now flies wide-bodied MD-11 aircraft on each of its weekly ten frequencies between Hong Kong and its regional hub at Subic Bay. This has enabled FedEx to substantially increase its weekly capacity from 900,000 pounds to 1.7 million pounds. This additional capacity will ensure that FedEx continues to provide its Hong Kong customers with service of superior reliability for their intra-Asia shipments. In the past, FedEx operated both A310 and MD-11 aircraft.

"FedEx is committed to providing fast and reliable international express service for Hong Kong customers. By flying our own MD-11 aircraft, we are in full control of our loading capacity and thus are able to provide our customers with a much higher level of assurance for heavyweight shipments, such as electronics and textiles," said Eddy Chan, Vice President, FedEx China and Mid-Pacific.

According to the latest statistics from Airports Council International, Hong Kong was named the second-busiest air cargo hub in 1999. The volume of shipments into and out of Hong Kong has been rising, largely because of the gradual recovery of the Asian economies as well as the exponential growth of electronic commerce around the world. "The demand for express service has become so strong that we need a bigger aircraft. The needs of companies operating in and doing business with Hong Kong are continuously evolving, and we always work closely with our customers to ensure that we stay ahead in anticipating their needs. Our increase in capacity will definitely benefit Hong Kong as a whole, and in particular express shippers who move big packages and heavy freight consignments between Hong Kong and other Asian countries," continued Mr. Chan.

Flying a total of 34 dedicated frequencies to and from Hong Kong per week, FedEx is the largest all-cargo express carrier in Hong Kong providing fast and reliable international express service for local customers. With its intra-Asia capacity increase, FedEx is well-positioned to handle greater package volume so as to better serve Hong Kong express shippers.

"FedEx is very pleased and excited about our latest service enhancement. We believe that this will not only strengthen our unparalleled AsiaOne service but also further increase our competitiveness in the express transportation industry and support our customers to compete well into the 21st century," added Chan.

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