UPS EXPANDING GLOBAL NETWORK OF FIELD STOCKING LOCATIONS

Forges Strategic Alliance in India; Opens Customer Support Center in the Philippines

ATLANTA, May 5, 2009 — UPS (NYSE: UPS) today announced plans to boost its global post sales service options by significantly expanding its field stocking location (FSL) network in India and by establishing an Asia Post Sales Customer Support Center in Clark, Philippines.

“Despite current economic conditions, Asia continues to be a global manufacturing hub and market research indicates Asia's contract logistics market could overtake North America’s in the next five years,” said Brad Mitchell, president of UPS Logistics & Distribution. “UPS is expanding its post sales solutions in the Asia Pacific region to fulfill these market needs.”

UPS’s network of field stocking locations provides critical logistics support to companies that must respond quickly to customer service needs, such as high-tech electronic firms.

UPS will expand its presence in India with plans for more than 130 FSL’s through an agency agreement with AFL, one of India’s leading logistics and domestic transportation service providers. The expanded network will benefit customers requiring close-to-customer field stocking facilities and a transportation network to support same-day, Next Flight Out and next-business-day delivery of critical service parts. The sourcing time for customers is greatly reduced as they gain immediate access to strategically-located central distribution centers and FSL’s across India.

“India is a priority market for UPS’s contract logistics business,” Mitchell added. “With this enhancement, UPS is well-positioned to support the after-market needs of local businesses as well as multi-national corporations. It gives our global customers improved access to one of the world’s largest economies.”

AFL will use UPS’s post sales technology to manage customers’ forward stocking inventory at multiple locations, with the ability to view inventory located in FSLs worldwide. The UPS post sales solution also provides value-added services such as inventory planning and returns management services in India and globally.

In addition to expanding its FSL network in India, UPS also is enhancing its customer service through a new Asia Service Parts Logistics (SPL) Customer Support Center in Clark, Philippines. Operating 24x7, the center provides UPS’s SPL customers in Asia with prompt support and full visibility into their critical orders with real-time status throughout the entire cycle.

UPS’s SPL network is the world’s largest with more than 700 field stocking locations in 120 countries. This global footprint, which is fully integrated with the company’s global transportation network, enables UPS customers to locate their products closer to their customers and suppliers. By combining comprehensive service capabilities with operational excellence and best-in-class technology, UPS helps customers achieve an optimized service parts supply chain.