UPS FREIGHT EXTENDS RELIABILITY GUARANTEE TO CANADA

RICHMOND, June 2, 2008 – UPS Freight (NYSE:UPS), which introduced its
on-time performance guarantee in the United States in January, has expanded
the guarantee to shipments moving in both directions across the Canada-U.S.
border.

“The reliability guarantee is a direct result of UPS’s experience
with freight, brokerage and customs clearance as well as our in-bond
freight expertise,” said Rick Smith, UPS Freight’s Director-Canada. “It’s
also a clear sign to our customers of the confidence we have in the changes
made at UPS Freight.”

The new reliability guarantee, offered at no additional cost, applies
to direct shipments between points in the United States (48 contiguous
states) and points served by UPS Freight service centers in Calgary,
Edmonton, Halifax, Moncton, Montreal, Toronto, Vancouver, Windsor and
Winnipeg. It is being offered at a time of continued strong trade growth
between the two countries; the U.S. Transportation Department says surface
transportation trade totaled $45 billion in February, up 18% over the prior
year.

The on-time service guarantee is available effective June 30 for
less-than-truckload (LTL) customers on both sides of the border who ship
using the current UPS Freight UPGF525 tariff. The new guarantee promises
that customers can request a waiver of their freight charges if their
shipment fails to arrive as scheduled. Detailed terms of the guarantee can
be found in the tariff.

UPS Freight's Canadian service includes: a pre-arrival system that
speeds clearance at border crossings, minimizing delays; electronic
transmission of customs documentation; complete online tracking from origin
to destination with instant access to all customs documents, and customs
delay alerts and 24-hour access to all shipping information.

Since acquiring the former Overnite Transportation Co. in April 2005,
UPS has enhanced UPS Freight's service portfolio and reliability, optimized
its delivery network and invested significantly in new technology. As a
result, the LTL and truckload carrier is aligned with the global operations
and performance standards of UPS's small package and supply chain services.

To improve the experience of UPS Freight’s customers, the company has
equipped drivers with hand-held computers to track shipments from origin to
destination, implemented a Dispatch Reservation System and purchased new
rolling stock equipped with extensive decking systems and load bars to
minimize the risk of damage. UPS Freight also has applied its Web-based
tracking and proactive notification systems – Quantum View® and UPS
WorldShip® -- to allow freight customers to integrate their databases and
shipping systems and more accurately plan for inbound and outbound
shipments.

“Under UPS, we are achieving new levels of performance, transitioning
into a value-added premium carrier,” said UPS Freight President Jack A.
Holmes.

UPS Freight is one of the largest less-than-truckload (LTL) carriers
and a leading truckload (TL) service provider in the United States with
over 215 service centers and 17,400 employees. UPS Freight’s reliable,
modern fleet of approximately 29,000 tractors and trailers offers a full
range of regional and long-haul capabilities. UPS Freight also serves
Canada, Mexico, Puerto Rico, Guam and the U.S. Virgin Islands. For more
information visit upsfreight.com.