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September 15, 1997

CAAC and FedEx Working Together to Advance China's Aviation Industry

BEIJING, September 15, 1997 - Federal Express Corporation (FedEx) and the Civil Aviation Administration of China (CAAC) are cooperating to further improve China's air safety capabilities in a program sponsored by FedEx. Within this program, 15 Chinese air traffic controllers left Beijing in early September 1997 to pursue advanced technical training in radar air traffic control at Embry Riddle Aeronautical University in Daytona Beach, Florida in the United States.

"We are honored to have the opportunity to work together with CAAC to advance air traffic management in China. Training in the latest aviation technology will bolster CAAC's efforts to make China's air traffic control systems the best in the world," said Marco Chan, managing director and general manager of FedEx operations in China, speaking to the departing air traffic controllers at a FedEx-hosted luncheon.

Mr. Li, CAAC's assistant director, said: "This training program is a good omen for successful cooperation between CAAC and FedEx. We believe that this training will help CAAC provide higher quality service to FedEx and other airlines." The air traffic controllers are the second group that FedEx has sponsored. Previously, 15 controllers participated in a similar program in September 1996.

FedEx is the only US-based express transportation company with aviation rights to fly to China, and the company currently operates four flights per week to Beijing and Shanghai.

FedEx currently serves the Asia Pacific market with approximately 4,300 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 250 flights per week to the following locations: Bangkok, Beijing, Hong Kong, Kaohsiung, Kuala Lumpur, Manila, Osaka, Penang, Seoul, Shanghai, Singapore, Subic Bay, Taipei, and Tokyo, as well as destinations in the U.S.

Federal Express is the world's largest express transportation company providing fast and reliable services for more than 2.9 million items in 212 countries each working day. The company employs approximately 137,000 people, has more than 42,500 drop-off locations, and operates more than 590 aircraft and 38,500 vehicles in its integrated global network. FedEx maintains electronic connections with more than 750,000 users via FedEx PowerShip^®, FedEx Ship^® and FedEx interNetShip^SM. Federal Express reported revenues of US$11.5 billion for its fiscal year ended May 31, 1997.