UPS "Green Fleet" To Expand With 200 Hybrid Electrics In Addition to 300 Compressed Natural Gas Vehicles

ATLANTA, May 13, 2008 (BUSINESS WIRE) -- UPS (NYSE: UPS) today announced it has ordered 200 hybrid electric
vehicles (HEVs) -- the largest commercial order of such trucks by any
company -- in addition to another 300 Compressed Natural Gas (CNG)
vehicles for its U.S. delivery fleet.

The purchase of the 500 additional vehicles means the UPS
alternative fuel fleet -- already the largest such private fleet in
the United States -- will grow 30 percent from 1,718 to 2,218
low-carbon vehicles.

"Alternative fuel research and development is just one of the ways
that UPS is mitigating climate change risks," said Bob Stoffel, UPS's
corporate sustainability officer. "We also are focused on aggressive
conservation programs and improving network efficiency to cut fuel
use."

UPS's "green fleet" operates in the United States, Germany,
France, Brazil, Canada, Mexico and the United Kingdom and has traveled
nearly 144 million miles since 2000. The fleet includes electric,
hybrid electric, CNG, liquefied natural gas and propane-powered
vehicles. The company also is continuing work with the Environmental
Protection Agency on a hydraulic hybrid delivery vehicle.

"UPS has been utilizing alternative fuel vehicles for more than 70
years and is clearly the industry leader in hybrid electric and CNG
vehicle purchases," said Robert Hall, director of UPS's ground fleet.
"At UPS, it's very important to us to demonstrate our commitment with
action, which is why we have the largest private 'green' fleet in the
industry. And both CNG and HEV vehicles provide substantial reductions
in carbon emissions, which supports our commitment to reducing our
impact on the environment."

The 200 hybrid electric vehicles will be deployed in 2009 and join
50 HEV delivery trucks already in operation. The 200 trucks are
expected to save 176,000 gallons of fuel annually and reduce CO2
emissions by 1,786 metric tons each year. That is the equivalent of
removing almost 100 conventional UPS trucks from the road for a year.

The HEV's hybrid power system allows UPS to save on fuel and
pollution-causing emissions. A battery pack, motor/generator and power
control system are added, which allow electric power to be fed into
the powertrain when conditions demand it, providing further savings.

The HEVs also use what is known as regenerative braking, meaning
the energy produced in stopping the moving vehicle is captured and
returned to the battery system as electrical energy. The efficient,
computer-controlled combination of clean diesel power, electric power
and regenerative braking produces dramatic improvements in fuel
savings and emissions reductions.

The 300 CNG vehicles will be deployed later this year and join
more than 800 such vehicles already in use in the United States. CNG
vehicles run on natural gas, a cost-effective, clean-burning and
readily available fuel. These vehicles are expected to yield a 20
percent reduction in emissions over the cleanest diesel engines
available today.

The CNG/HEV vehicle order follows the April 2008 deployment of 167
new CNG vehicles in Atlanta, Dallas, Los Angeles, Ontario, San Ramon,
Fresno and Sacramento. In addition, UPS added 50 next-generation
hybrid electric delivery trucks in Atlanta, Dallas, Houston and
Phoenix in May 2007.

The chassis for the CNG and HEV trucks are being purchased from
Freightliner Custom Chassis Corporation, with Eaton Corporation
supplying the hybrid power system for the HEVs. The truck bodies are
identical externally to the signature-brown trucks that now comprise
the UPS fleet with additional script markings that will identify them
as CNG and HEV vehicles.

UPS (NYSE:UPS) pursues a wide range of socially responsible and
sustainable business practices designed to reduce our impact on the
environment and improve communities around the world. UPS is included
in the Dow Jones and FTSE4Good Sustainability Indexes, which evaluate
corporations based on economic, environmental and social criteria.
Learn more about UPS's responsible business practices at
sustainability.ups.com.

SOURCE: UPS

UPS
Elizabeth Rasberry, 404-828-4866

Copyright Business Wire 2008