UPS Receives Subpoena in Air Cargo Investigation

The investigation, which was publicly announced in February 2006,relates to the air cargo pricing practices of a number of airlines.

UPS does not believe it is a target of the investigation and willcooperate with the Justice Department.

Except for historical information contained herein, the statementsmade in this release constitute forward-looking statements within themeaning of Section 27A of the Securities Act of 1933 and Section 21Eof the Securities Exchange Act of 1934. Such forward-lookingstatements, including statements regarding the intent, belief orcurrent expectations of UPS and its management regarding the company'sstrategic directions, prospects and future results, involve certainrisks and uncertainties. Certain factors may cause actual results todiffer materially from those contained in the forward-lookingstatements, including economic and other conditions in the markets inwhich we operate, governmental regulations, our competitiveenvironment, strikes, work stoppages and slowdowns, increases inaviation and motor fuel prices, cyclical and seasonal fluctuations inour operating results, and other risks discussed in the company's Form10-K and other filings with the Securities and Exchange Commission,which discussions are incorporated herein by reference.