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( BW)(PA-FEDEX-GROUND)(FDX) FedEx Ground Unveils New $80 Million Package Delivery Technology; New Data-Collection System to Give Shippers More Detailed Tracking

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    PITTSBURGH--(BUSINESS WIRE)--Oct. 16, 2000--FedEx Ground, the second largest small-package ground carrier in North America and an operating unit of FedEx Corp. (NYSE:FDX), is rolling out a new data-collection system.
    The $80-million project, the largest non-facility investment in company history, includes the installation of new on-van computers; enhanced handheld scanners for electronically capturing delivery information, including signatures; wireless Local Area Networks (LANs) at every FedEx Ground facility; and wearable ring scanners.
    Collectively, this new technology will provide ground shippers with even greater package visibility through more detailed tracking and faster delivery confirmation, including signature proof of delivery (P.O.D.). FedEx Ground is the only small-package ground carrier that provides free P.O.D. signatures on the Internet.
    This project complements the carrier's three-year, $500-million expansion plan, announced in January 1999, to boost the package-processing capacity of its distribution network by 50 percent.
    "In the FedEx tradition, we are committed to developing and integrating into our network the most advanced technology for constantly improving service to our customers," said Ivan Hofmann, executive vice president and chief operating officer of FedEx Ground. "This project gives FedEx Ground customers more of what they need to succeed in the new economy -- timely, accurate information."

    Real-Time Delivery Data

    In July 2000, more than 9,000 FedEx Ground contract drivers who comprise the FedEx Ground pickup-and-delivery fleet received new state-of-the-art handheld scanning computers, called STAR II.
    Designed exclusively for FedEx Ground by Symbol Technologies (NYSE:SBL), the new scanning computers will electronically capture signatures and be used to record delivery addresses. STAR II replaces handheld scanners that were adopted by FedEx Ground in 1990 -- the first to be used in the ground industry.
    Simultaneously, FedEx Ground is equipping all pickup-and-delivery vans with new in-vehicle computers that will constantly transmit delivery data captured by STAR II scanners to the company's central mainframe computer. Data will be uploaded after every delivery stop over the BellSouth Intelligent Wireless NetworkSM (NYSE:BLS), a nationwide packet-radio wide area network. In rural delivery areas, satellite communications will be used.
    To transmit delivery information to every local pickup-and-delivery terminal, FedEx Ground has installed a wireless local area network (LAN) at each of its facilities nationwide. As a van returns to its home terminal, delivery data captured by the STAR II scanner will be automatically uploaded via the LAN for use in evening check-in.
    Through its application of state-of-the-art technology for capturing and recording delivery information, FedEx Ground will be able to offer same-day proof of delivery (P.O.D.) to customers who call 1-800-Go-FedEx(R). Shippers also will have faster access to P.O.D. information -- including electronic signatures -- via the World Wide Web at www.fedex.com.

    Increased Package Visibility

    The new FedEx Ground data-collection system also will provide greater package visibility by doubling the number of en route package scans, primarily at the point of trailer and van loading. The company will accomplish this through the application of radio-frequency-enabled ring scanners, which FedEx Ground package handlers will wear while loading.
    "These additional scans will give shippers the most complete and accurate en route tracking in the small-package ground industry," said Hofmann.
    About 1,200 ring scanners are now in use at more than 100 facilities in the FedEx Ground network. The company plans to be using the wearable scanning technology at all 369 FedEx Ground sites by May 2001.
    Full implementation of FedEx Ground's new data-collection system is scheduled to be completed in September 2001.

    FedEx Ground, a subsidiary of FedEx Corporation (NYSE: FDX), is the second largest small-package ground carrier in North America. The company recorded annual revenue of more than $2 billion in fiscal year 2000.

    With annual revenues of $19 billion, FedEx Corp. is the premier global provider of transportation, logistics, e-commerce and supply chain management services. The company offers integrated business solutions through a network of subsidiaries operating independently, including: FedEx Express, the world's largest express transportation company; FedEx Ground, North America's second largest provider of small-package ground delivery service; FedEx Logistics, an integrated logistics, technology and transportation-solution company; FedEx Custom Critical, the world's largest provider of expedited time-critical shipments; and FedEx Trade Networks, a provider of customs brokerage, consulting, information technology and trade facilitation solutions. More than 2.5 million customers are connected electronically through the FedEx information network and approximately two-thirds of its U.S. domestic transactions are now handled on-line.


    CONTACT: FedEx Ground
             Betsy Momich, 412/747-4214

    PHOTO: bb1

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