New and Expanded Facilities Highlight FedEx Freight Growth in Strategi

New and Expanded Facilities Highlight FedEx Freight Growth in Strategic Locations

    Business Editors/Transportation Writers

    MEMPHIS, Tenn.--(BUSINESS WIRE)--Feb. 14, 2005--

Company Opens New Facility in Southern California; Announces Plans for a New Complex in Northern California; and Expands Capacity at Two Mid-Atlantic Consolidation Centers
    FedEx Freight, a leading provider of regional and interregional less-than-truckload (LTL) services in the U. S. and a subsidiary of FedEx Corp. (NYSE: FDX), has started the new year aggressively by expanding capacity at two key regional facilities in the mid-Atlantic region; opening a new facility in Southern California; and moving forward with plans to construct a major consolidation center near Sacramento, Calif., by 2006.
    "Expanding capacity in our larger facilities and opening new centers in strategic locations remain important business objectives as FedEx Freight continues its rapid growth across North America," said Douglas G. Duncan, president and CEO of FedEx Freight. "These ongoing investments in our infrastructure are designed to meet increasing customer demand for our services."
    Enhancing the company's breadth and depth of service throughout California - where FedEx Freight already maintains 25 full-service facilities - is a new 52,000-sq. ft. center in Gardena with 92 service doors on a 13-acre site, more than double the size of the former 40-door center. Nearly 150 employees work at the new center.
    The company also will expand its presence in the Northern California region as it moves forward with plans to construct a 152-door facility on a 51-acre site in West Sacramento. The new 115,000-sq. ft. center will replace the current 17-acre, 127-door complex. More than 450 employees are assigned to the current Sacramento center.
    Both the new Gardena service center and the future West Sacramento complex will enable FedEx Freight to build and coordinate the movement of more direct loads to other company facilities in the region and beyond, which will enhance service and reduce shipment handling.
    Mid-Atlantic facilities undergoing expansion include the Youngstown, Ohio, center, which has increased in size from 102 to 154 doors - 52, 000-sq. ft. to 75,000-sq. ft. - making it one of the largest operations in the company. Meeting increased demand along the busy I-80 and I-76 corridors in Ohio and Pennsylvania, the expanded center is situated on 30 acres.
    The FedEx Freight consolidation center in Pocono Summit, Pa., near Wilkes-Barre, serves as a major I-80 connection point for freight bound to and from the New York City metropolitan area, New England and points west. Formerly equipped with 151 service doors, the facility now operates 196 doors with more than 77,000-sq. ft. of dock and office space on a 52-acre complex. In addition, a five-bay vehicle service garage with two fuel lanes is under construction and slated for completion this spring.
    Each state-of-the-art facility is or will be equipped with new dock computers, which enhance visibility for customers tracking shipment progress via fedex.com or other means as shipments are scanned during the unloading and loading processes.

    About FedEx Freight

    Within FedEx Corp., the FedEx Freight Segment had annual revenues of $2.7 billion in fiscal year 2004. The Segment includes FedEx Freight, a leading U.S. provider of regional next-day and second-day and interregional LTL freight services. With corporate offices in Memphis, Tenn., FedEx Freight is known for exceptional service, reliability and on-time performance. Through a comprehensive network of service centers and advanced information systems, FedEx Freight provides service to virtually all U.S. ZIP codes, including Alaska and Hawaii.
    The carrier's regional and interregional LTL service is supported by a no-fee money-back guarantee on all eligible continental U.S. shipments. Internationally, the company serves Canada, Mexico, Puerto Rico, Central and South America, the Caribbean, Europe and Asia. The FedEx Freight Segment also includes FedEx Custom Critical, North America's largest time-specific, critical shipment carrier; and Caribbean Transportation Services, the leading provider of airfreight forwarding services between the United States and Puerto Rico. For more information, visit the FedEx web site, fedex.com.

--30--AWG/na*

CONTACT: FedEx Freight, Memphis Debra Phillips, 901-434-3122 debra.phillips@fedex.com www.fedex.com

KEYWORD: TENNESSEE MEXICO INTERNATIONAL CANADA LATIN AMERICA ASIA PACIFIC EUROPE INDUSTRY KEYWORD: AIRLINES TRANSPORTATION PRODUCT SOURCE: FedEx Corp.

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