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July 24, 1997

Subic Bay Installs New Transponder Landing System

SUBIC BAY, PHILIPPINES, July 24, 1997 - Federal Express Corporation (FedEx) announced today that a new transponder landing system (TLS) has been purchased by the Subic Bay Metropolitan Authority (SBMA) in the Philippines, and is now being installed at the Subic Bay International Airport (SBIA). The TLS is an instrument landing aid which emits radio signals to help pilots determine the exact location of the aircraft before final approach.

SBMA chairman, Richard J. Gorden, signed a US$1.6 million contract in New York in May 1997 with Advanced Navigation & Positioning Corporation, an Oregon-based company that will provide and install the equipment and all its support items.

The new landing aid system will help pilots determine a perfect touchdown regardless of tough terrain surrounding the airport and during any possible unpredictable wind conditions.

The TLS uses radio or identification signals from various ground stations to measure the location of an approaching aircraft. These signals will, in turn, be read by the pilots from the Instrument Landing System (ILS), an aviation instrument already existing in aircraft flown by FedEx into the Subic Bay International Airport.

The initial phase of the installation, which includes identifying the sites for the radio transmitters for the system, is expected to be completed by end of July 1997. Project completion is scheduled before the end of this year.

Once completed and duly certified by the Air Transportation Office (ATO) of the Philippine government, the TLS will place Subic Bay International airport on par with airports around the world using this system, helping it achieve its full potential of becoming a premier all-weather 24-hour international passenger and cargo airport.

"We are confident that the transponder landing system will be a significant benefit for the airport at Subic Bay and for its customers," says Michael L. Ducker, senior vice president of FedEx Asia Pacific Division. "We thank and congratulate Chairman Richard Gordon for his continuous efforts to better the SBMA's services to its major investors and to FedEx".

FedEx currently services the Asia Pacific market with approximately 4,300 employees in more than 30 countries and territories. Operating its own wide-bodied MD-11, DC-10 and A310 aircraft, FedEx offers over 160 flights per week to the following locations: Beijing, Hong Kong, Kaohsiung, Kuala Lumpur, Manila, Osaka, Penang, Seoul, Shanghai, Singapore, Subic Bay, Taipei and Tokyo.

Federal Express is the world's largest express transportation company providing fast and reliable services for more than 2.8 million items in 212 countries each working day. The company employs approximately 130,000 people, has nearly 43,000 drop-off locations, and operates more than 580 aircraft and 38,000 vehicles in its integrated global network. FedEx maintains electronic connections with more than 650,000 users via FedEx PowerShip®, FedEx Ship® and FedEx interNetShipSM. Federal Express reported revenues of U.S.$11.5 billion for its fiscal year ended May 31, 1997.

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