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January 26, 2000

Federal Express Appoints Sole Operator in Shanghai

SHANGHAI, January 26, 2000 - Federal Express Corporation (FedEx), the world's largest express transportation company, has appointed the Shanghai branch company of Tianjin-based Da Tian W. Air Service Corporation (DTW Co. Ltd.) as its sole operator in Shanghai. The cooperation of the two powerhouses in the express transportation industry aims to provide unparalleled international express transportation services for customers who need to be connected with the world in Shanghai, the biggest economic and trade center in China.

The cooperation agreement between FedEx and Da Tian in Shanghai will come into effect on February 5, 2000. " We pick the date because this is the first day of the Year of Dragon. 'The dragon travels a thousand miles a day' is a traditional Chinese saying. We are confident that the cooperation with Da Tian will witness a fast development of express transportation industry and provide world-class international express service to Shanghai customers." said Eddy Chan, Regional Vice President for FedEx China and Mid-Pacific. FedEx's former agreement with three other agencies will be terminated thereafter.

The appointment in Shanghai is a further step towards a tighter cooperation relationship between FedEx and DTW Co. Ltd, who have set up a joint venture, Federal Express-DTW Co., Ltd. in Beijing. The new joint venture, which went into official operation on November 1, 1999, is dedicated to providing unparalleled international express transportation services for customers with shipping requirements to and from China.

"With a strong network and a proven track record in the Chinese marketplace, Da Tian proves to be an ideal partner," continued Eddy Chan, "Together we aspire to achieve the same goals, " he said: " to provide the best possible customer service to customers, to provide quality employee training and career advancement opportunities and to act as an upstanding corporate citizen that contributes to the community."

"Da Tian is pleased to extend its cooperation with FedEx and together we hope to further develop the international express business in Shanghai." said Wang Shusheng, Da Tian President, "We are confident that Federal Express-DTW Co. Ltd. will prove to be a successful partnership for years to come."

Together with its operators, FedEx China has experienced significant development in 1999. The company's services are now available in 144 cities in China, as compared to 97 cities in 1998.

In mid-October last year, FedEx launched an industry-first simplified Chinese web page in China, allowing shippers and viewers to surf the site and track the status of shipments in their own language (www.fedex.com). On November 2, 1999, FedEx initiated a five-time weekly Shenzhen flight, connecting southern China to FedEx's international network of 209 countries. FedEx also opened an express handling facility at the Huangtian International Airport in Shenzhen, the first of its kind in China. Concurrently, FedEx increased its flight schedule to Beijing and Shanghai from four to five times weekly.

Founded in 1992, Da Tian W. Air Service Corporation is based in Tianjin, with branches in 16 cities in China. Specializing in forwarding, charter operation and dangerous goods handling, the company was ranked one of China's top five forwarding companies in 1997.

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