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Mon, Aug 28, 2006

FedEx Express and ALPA Announce Tentative Labor Agreement

Four-Year Contract Requires Ratification by Pilots

FedEx Express and the Air Line Pilots Association, Int'l. have jointly announced that they reached a tentative agreement (TA) on a new labor contract on Saturday evening. Negotiations have been conducted under the guidance of the National Mediation Board since October 2005 and both parties acknowledged the Board's support.

The new agreement is subject to review and finalization of contract language, which is expected to be completed shortly. Terms of the tentative agreement are not being released as they first must be reviewed and approved by the FedEx ALPA Master Executive Council (MEC). If approved, the TA will be subject to a ratification vote by about 4,700 FedEx pilots and if ratified, the four-year contract would become amendable in 2010.

"We're gratified that the collective bargaining process has produced solid contract improvements that acknowledge our pilot group's contributions to FedEx and we appreciate the Company's commitment to these negotiations," said Captain David Webb, chairman of the ALPA FedEx MEC.

"We look forward to presenting the tentative agreement to our governing body and membership."

"We at FedEx Express appreciate the time and effort both sides have put into reaching a resolution that is not only fair to our pilots and their families but also fair to the company and our other employees and shareowners," said David J. Bronczek, president and chief executive officer of FedEx Express.

The 4,700 professional FedEx pilots, representing the air division of the FedEx brand and helping generate nearly two-thirds of FedEx Corporation's annual revenue, fly to cities on five continents.

Founded in 1931 and celebrating its 75th anniversary this year, ALPA represents 61,000 pilots at 40 airlines in the U.S. and Canada.

FMI: www.fedex.comwww.alpa.org

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