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Mon, Jan 31, 2005

UPS Secures 11 Boeing MD-11 Freighters

15 Of 28 MD-11s Now In Service For Big Brown

UPS says it will acquire 11 pre-owned Boeing MD-11 aircraft to expand the capacity of its air network.

The additional aircraft bring the number of MD-11s in UPS's fleet and on order to 28. Fifteen of the 28 planes now are in service.

UPS will take delivery of the first of these 11 aircraft during this year's first quarter, with the remaining deliveries extending through 2007. The sale was arranged by Focus Aviation on behalf of Central Air Leasing and at one time, the 11 were flown by Swiss. Financial details were not disclosed. The acquisition will not require any adjustment to capital spending plans.

"The MD-11 has the technology, solid performance and strong operating economics that make it a wonderful fit for our international network," said Bob Lekites, vice-president of UPS Airlines and international operations.

The MD-11 has the capacity to carry approximately 190,000 pounds of cargo and a range of nearly 3,900 nautical miles. Although the MD-11 serves as UPS's primary workhorse on international routes, the addition of these planes will support the growth of the entire integrated global network. UPS's domestic overnight and international air businesses have been growing strongly. During the fourth quarter of 2004, for example, US domestic overnight volume grew 4.1% and average daily international export volume rose 13.5%, with Asia export volume up 34% and export volume out of China up 125% compared to the prior year.

"We continually evaluate and adjust the company's air network to meet the needs of our customers," Lekites added. "Our strong growth has increased our need for large aircraft and the MD-11 is part of that solution."

FMI: www.UPS.com

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