FedEx Ground Selects Site for New Portland Area Distribution Hub

New facility will serve growing Northwest region and help continue company’s strong growth record

As part of an ongoing national expansion plan, FedEx Ground, a subsidiary of FedEx Corp., (NYSE: FDX), has chosen a 77-acre site in Troutdale to build a distribution hub that will be double the size of the existing operation in Portland, Oregon. A formal ground breaking ceremony took place on October 29.

The 415,000 square-foot facility will be built in the new Troutdale Reynolds Industrial Park and will cost about $100 million including land, construction and material-handling equipment. Scheduled to open in 2010, the hub will feature the latest automated material handling technology designed to initially process 25,000 packages per hour and eventually 45,000 packages per hour when it reaches full capacity after a projected expansion. The workforce at opening is projected to include more than 500 full-time and part-time employees and about 200 independent contractor opportunities, many of which will transfer from the current facility.

The new FedEx Ground hub is part of a nationwide network expansion to boost daily package volume capacity and further enhance the speed and service capabilities of its network. Since embarking on the multi-year expansion program in 2002, FedEx Ground has opened seven new hubs featuring the most advanced material handling systems and expanded and/or relocated more than 500 local facilities.

The network enhancements have resulted in accelerating ground service delivery by one day or more in more than half of the United States. FedEx Ground delivers more than 50% of packages in two days or less and more than 80% of packages in three days or less. Additionally, average daily packages volumes have increased by more than 50% from 2.1 million in 2003 to more than 3.3 million today.

“Enhancing our distribution capability in the Northwest is an important step in our ongoing efforts to increase the size, speed and efficiency of our network,” said John F. Hiltz, vice president of the Western Division for FedEx Ground. “This significantly larger facility will enable us to meet the growing demand of local shippers and transport shipments across the country. The city of Troutdale officials have been very receptive as we worked through the purchase and we look forward to establishing our presence in the community.”

The Troutdale site was chosen because of its ease of access to major highways, its proximity to customers’ distribution centers and a strong local labor pool from which to recruit employees.

About FedEx Ground

FedEx Ground specializes in cost-effective, small-package ground shipping, offering dependable business-to-business delivery or convenient residential service. With a network of more than 500 distribution hubs and local pickup-and-delivery terminals, FedEx Ground has a workforce of more than 70,000 employees and independent contractors who operate 20,000 motorized vehicles delivering over 3.3 million packages daily throughout the United States, Canada and Puerto Rico. The company reported annual revenue of $6.7 billion in fiscal year 2008.

Corporate Overview

FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $39 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its more than 290,000 employees and contractors to remain “absolutely, positively” focused on safety, the highest ethical and professional standards and the needs of their customers and communities. For more information, visit news.fedex.com.

Certain statements in this press release may be considered forward-looking statements, such as statements relating to management’s views with respect to future events and financial performance. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions in the global markets in which we operate, new U.S. domestic or international government regulation, the impact from any terrorist activities or international conflicts, our ability to effectively operate, integrate and leverage acquired businesses, the impact of changes in fuel prices and currency exchange rates, our ability to match capacity to shifting volume levels and other factors which can be found in FedEx Corp.’s and its subsidiaries’ press releases and filings with the SEC.
Contacts

FedEx Ground
David Westrick, 412-859-5435
Public Relations Coordinator
david.westrick {at} fedex(.)com