Rising Fuel Prices Affect Near-Term Outlook

MEMPHIS, Tenn., May 09, 2008 (BUSINESS WIRE) -- FedEx Corp. (NYSE: FDX) today announced that earnings for the
fourth quarter ending May 31, 2008 are expected to be in the range of
$1.45 to $1.50 per diluted share, compared to the previous forecast of
$1.60 to $1.80.

"Since we provided earnings guidance for the fourth quarter in
March when the crude oil price was slightly above $100 per barrel, our
estimated fuel costs for the quarter have increased more than 7
percent, or $100 million from our previous estimate, and the weak
economy has restrained demand for U.S. domestic express package and
LTL freight services," said Alan B. Graf, Jr., FedEx Corp. executive
vice president and chief financial officer. "While we have dynamic
fuel surcharges in place, they cannot keep pace in the short-term with
rapidly rising fuel prices. This revised outlook assumes no additional
increases to the current fuel price environment and no further
weakening of the economy."

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 $37 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, legal challenges
or changes related to FedEx Ground's owner-operators, 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.

SOURCE: FedEx Corp.

FedEx Corp.
Media Contact:
Jess Bunn, 901-818-7463
or
Investor Contact:
Mickey Foster, 901-818-7468
Home Page: fedex.com

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