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June 19, 2001

FedEx Integrates Import/Export Facilities at Kansai International Airport

TOKYO, June 19, 2001 -- FedEx Express, the world's largest express transportation company, announced today that it has integrated its import/export facilities at Kansai International Airport.

The new FedEx facility, with a total floor space of 3,580 sq. m and workforce of 144 employees, is 1.3 times the combined size of its previous import and export facilities. The facility will be equipped with two belt conveyors, with the capability of handling 6,000 packages per hour.

The new facility will also have a JEA (Japan Export Automation) system, and JEB (Japan Express Broker) system, both developed by FedEx. These systems are linked directly to the air cargo information processing system, NACCS (Nippon Automated Cargo Clearance System), which will result in greatly simplified customs clearance processing.

As a result of increased efficiency, FedEx will launch the same-day delivery service of non-documents from Asia for four cities in the Osaka area (Osaka, Higashi Osaka, Moriguchi, and Kadoma).

The new facility will also make possible pre-clearance of exports beginning October 1st this year in line with new customs procedure deregulation. This will make it possible to complete customs clearance preparation before the cargo arrives at Kansai International Airport, further reducing processing time. Thus, JEA integrated with NACCS, will result in greater reduction of time consumed by customs processing. With this initiative, FedEx will aim to improve its customer services in western Japan, including later cut-off times.

The import/export facility integration is the result of a plan to reorganize facilities to handle increasing cargo volumes at Kansai International Airport in response to the airport's need for higher efficiency. The volume of cargo handled by FedEx at Kansai International Airport has been currently increasing by over 20% annually, and by boosting efficiency with the newly built facility, FedEx intends to further enhance its customer service.

"The volume of cargo handled at Kansai International Airport is definitely on the increase," says David J. Ross, Vice President of FedEx North Pacific Region. "But FedEx, which promises customers speed and reliability, cannot extend its delivery times simply because cargo volumes have increased. By unifying our facilities, we will be able to increase work efficiency, and continue to provide our customers with the same reliable service they have been experiencing from us."

"Since the opening of the Kansai International Airport in 1994, FedEx has been expanding its business steadily, with the support of increasing cargo volume at the airport. FedEx will continue to see Western Japan as one of our most important markets, and aim to expand and enhance our service", he continues

FedEx Express began operations in Japan in 1984. Since starting overnight service between Tokyo and the U.S., the company has gradually expanded its service network to cover Osaka and Nagoya, and now provides same-day delivery service with its own flights through 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 currently has 1,600 employees, 50 drop-off locations including 5 fully-staffed World Service Centers, 5 Authorized ShipCenters, 22 Drop Boxes and 18 Stations nationwide.

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