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June 3, 1997

Federal Express Awarded Okinawa Route by Japan's Ministry of Transportation (MOT)

Hong Kong, June 3, 1997 - In a statement released today, Federal Express (FedEx) confirmed that the company has been awarded the rights, beginning with its summer schedule, to fly into Naha International Airport in Okinawa, Japan.

"We are pleased that Japan's Ministry of Transport has granted this operating authority, and we particularly want to thank Governor Ota of Okinawa for his interest in FedEx," Michael L. Ducker, senior vice president, FedEx's Asia Pacific Division, said.

On June 2, 1997, MOT announced that it had awarded FedEx the rights to link Okinawa with its current intra-Asian flight schedule departing from Tokyo's Narita International Airport. The announcement does not include "beyond rights" to load shipments on to FedEx aircraft at its operations at Narita and off-load at, for example, Manila in the Philippines.

"FedEx is now studying plans for launching a direct service to Okinawa in light of the limitations attached to these new Okinawa rights. With these restrictions on beyond rights, we need to conduct a thorough analysis and review our scheduling and destinations before launching new operations," Mr. Ducker added.

Since launching its Asia Pacific Hub in Subic Bay, Philippines in September 1995 and its AsiaOne network, FedEx now connects 13 cities in the region with overnight delivery service. The company continues to review airports and local markets that can be linked to FedEx's regional and global networks.

"We added both Beijing and Shanghai to the AsiaOne network last September, along with direct connectivity with Hong Kong, and we continue to consider other destinations such as Jakarta, Bangkok and Okinawa," Mr. Ducker said.

FedEx currently serves the Asia Pacific market with approximately 4,100 employees serving more than 30 countries and territories. The company provides the most extensive trans-Pacific air lift of any major competitor. Operating its own wide-bodied MD-11, DC-10 and A310 aircraft, FedEx offers over 160 flights per week to Beijing, Hong Kong, Kaohsiung, Kuala Lumpur, Manila, Osaka, Penang, Seoul, Shanghai, Singapore and Subic Bay.

Federal Express is the world's largest express transportation company, providing fast and reliable services for more than 2.8 million items in 211 countries each working day. The company has 41,000 drop-off locations, employs approximately 128,000 people and operates more than 580 aircraft, 38,000 vehicles and 550,000 PowerShip® and FedEx Ship® automated systems in its integrated global network. Federal Express reported revenues of US$10.3 billion for its fiscal year ended May 31, 1996.

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