Communications/EmailJuly 2006All articles appearing in Industry News are reprinted with permission. Industry News is a FedEx Publication. All rights reserved. 2006

July 13, 2006 | Page 1 of 5

“ I will make every FedEx experience outstanding.”

(continued on next page)

TopfoldIndustry headlines and newsmakers

FedEx Freight is on the Move!Everything is big in Texas. And for agrowing FedEx Freight leadership team,that’s a good thing. For the first time in itsshort history, our company held acombined leadership meeting July 10-13

in Grapevine, Texas. The sprawlingGaylord Texan convention center nearDallas proved an appropriate – andnecessary – venue to accommodatenearly 1,500 company managers andleaders from Memphis, San Jose,Harrison, Colorado Springs, Mexico andhundreds of service centers across thecountry.

Special guests included FrederickSmith, chairman, president and CEO ofFedEx Corporation, Doug Duncan, PatReed and the entire Freight leadershipteam. The three-day event providedopportunities for attendees to review

FY06 accomplishments, participate in educationsessions and hear more about the company’sstrategic direction this fiscal year and beyond.

The theme of the inaugural Annual LeadershipSummit was Changing What’s Possible. Ourstrong financial performance, increasing marketshare and overall impact on the transportation

industry all affirm our team is drivento do just that. Stay tuned for moremeeting details in future editions ofIndustry News! n FedEx FreightCorporate Communications,July 13, 2006

July 13, 2006 | Page 2 of 5

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2006 Annual Leadership Summit

Around the SystemA brief review of headlines generated by FedEx and its operating companies

FedEx to Send Record 74 Drivers to National Truck Driving ChampionshipsMEMPHIS, Tenn. – A record 74 drivers from 38 states representing the FedEx Corp. operating companieswill compete in the National Truck Driving Championships (NTDC) in New Orleans Aug. 15-19.

Each FedEx driver earned the right to compete in the NTDC by capturing first-place honors in state-leveltruck driving championships. The American Trucking Associations (ATA) sponsors the NTDC, designed torecognize industry leadership in safety and to promote professionalism among truck drivers.

“At FedEx, our commitment to service extends beyond delivering every shipment on time. Our entire teamof 76,000-plus drivers, couriers and contractors is also dedicated to safely sharing the road with othermotorists and to keeping safety the highest priority in everything they do,” said Frederick W. Smith,chairman, president and chief executive officer, FedEx Corp. “The accomplishments of these 74 statetrucking driving champions exemplify the superior professionalism and dedication found at FedEx.”

The FedEx state champions, who have nearly 1,300 years of professional driving experience among them,have safely driven more than 68 million miles collectively during their careers -- enough to circle the globeapproximately 8,500 times. Thirty of the FedEx competitors have driven for 20 years or more, and 31 ofthem have each accumulated at least one million miles of safe driving.

At the NTDC, the FedEx drivers will compete against nearly 400 others for national titles in eight differentclasses of vehicles and for the National Grand Champion title. The drivers accumulate points bydemonstrating their driving skills and knowledge of the industry through a written exam, personal interview,pre-trip inspection and field test.

July 13, 2006 | Page 3 of 5

Communications/EmailJuly 2006All articles appearing in Industry News are reprinted with permission. Industry News is a FedEx Publication. All rights reserved. 2006

The 2006 FedEx National Truck Driving Championship team includes:Driver State Domicile Special Awards

3-Axle ClassTony Allen NC GreensboroDewell Barnard GA AtlantaDavid Behrer NH LondonderryReese Butler MT BillingsBrian Clark IN IndianapolisTim Cohen CT Hartford Rookie of the YearBobby Cross DE BridgevilleTom Dake WI Green BayPat Delp NM Albuquerque Rookie of the YearJim Emerine OH Toledo Grand ChampionMike Gwin AR TexarkanaDavid Fountain VT WillistonMilton Hebert LA Lafayette Best Pre-Trip InspectionRyan Kelley IA Mason City Grand ChampionEverett Macmaster ME PortlandJoe Mangiaracino MO St. ClairMark McLean NY Newburgh Grand ChampionRon Pease UT Salt Lake City Grand ChampionRandy Reed OK TulsaDan Shamrell OR Portland Best Pre-Trip InspectionJeff Thompson KS Kansas City Grand Champion

4-Axle ClassRichard Bailey MI WarrenDan Bruch NM AlbuquerqueRobert Hargrove OK TulsaLes Paine WA SeattleRay Ramsey CT HartfordBrian Walton CO DenverJohn Willinger KY Louisville

5-Axle ClassRon Ackerland ND FargoRoland Bolduc CT Windsor Locks Grand ChampionMike Clark OK TulsaCody Dangel UT Salt Lake CityPaul Frisby CO DenverToby Kort NE North Platte Best Written ExamDan Ledbetter NV RenoMark Leino MN Duluth

Driver State Domicile Special Awards

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5-Axle Sleeper ClassJim Hall TX AustinTim James TN Memphis

Flatbed ClassFred Jones MD Baltimore Rookie of the YearJohn Smith MS TupeloTroy Swenson SD Watertown

Straight Truck ClassMatt Alberts NC GreensboroCarroll Bean VT BurlingtonAngelo Bernal NM FarmingtonTravis Boardman DE BridgevilleAndy Bryant TN KingsportMark Dietsche OR Salem Grand ChampionJames Fisher MI ToledoBrent Glasenapp WI MilwaukeeChuck Jensen UT Salt Lake CityBernard Llave CA San DiegoChris Morgan LA Baton Rouge Grand ChampionNick Nunley TX Lubbock Best Pre-Trip InspectionBill Pudney MN MinneapolisPorter Robinson MO Brookfield

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Straight Truck Class (continued)Sergio Romero NV Las Vegas Rookie of the YearNiel Smith IL Chicago SummitJeff Steele CO DenverScott Watts AK Anchorage Grand Champion

Tank Truck ClassTim Banasiak IL PeruTim Danehy CT StratfordJere Rions SD Sioux Falls Rookie of the Year

Twins ClassJim Butler MT Billings Grand ChampionRandy Byrd MS JacksonBrian Gardner IA Des MoinesJoe Jackson CT HartfordJohn Janousek ND FargoDarrell Kimbrell AL BirminghamJerry Lambert OR PortlandDon Logan KS Topeka Rookie of the YearCharlie Lovato NM FarmingtonPat McGovern CO DenverOmar Talavera NV Las VegasManuel Trevino TX Harlingen

The 2006 FedEx National Truck Driving Championship team includes (continued):Driver State Domicile Special Awards Driver State Domicile Special Awards

In 2005, FedEx sent a record 68 driving professionals from 35 states to compete in the national safety skillscompetition. A FedEx Freight driver captured the National Champion title in the Twins class, and four otherFedEx drivers earned top-three finishes in their respective vehicle classes.

In addition to industry-wide recognition, FedEx drivers who compete in and win at the national championshipsare eligible for a variety of awards through the FedEx safe driving initiative, The Chairman’s Challenge. Thisprogram provides the corporation with an opportunity to further reward drivers for their commitment to safety.n Business Wire, July 8, 2006

FedEx Drivers Headed to Nationals (year over year comparison)

19

42

121

July 10,2006

Total74

FedExFreight

FedExGround

FedExCustomCritical

FedExExpress15

37

15

12005

Total68

Bulls or Bears, Sets or SinglesA glance at economic conditions and other factors affecting our company and industry

June Payrolls Rise 121,000; Unemployment Rate Holds at 4.6%U.S. payrolls rose by 121,000 in June and the unemployment rate held at 4.6%, matching last month’s four-year low, the Labor Department reported Friday. The jobs gain was less than the 175,000 forecast by analysts,Bloomberg reported. It followed a revised 92,000 rise in May that was bigger than the 75,000 originallyreported.

Manufacturing employment gained 15,000 jobs, while construction employment fell by 4,000, the weakestsince June of last year. Service-industry employment, which includes retailers, banks and government agencies,rose 106,000 in June following a 95,000 increase in May.

The unemployment-rate gauge is based on a survey of households. The number of payroll jobs added isdetermined by a separate survey of business and government establishments. Because employment levelsdrive so much economic activity, an increase in employment can help consumer confidence and spendingpatterns, which affect trucking demand. n TTNews.com, July 7, 2006

Trucking Industry Reaches Major Freight Transportation Milestone The U.S. trucking industry increased its share of the nation’s freight pool, hauling more goods than ever in2005, the American Trucking Associations reported Wednesday. ATA’s American Trucking Trends 2005-2006,the industry’s almanac on U.S. trucking, reports that the trucking industry hauled 68.9 percent of the totalvolume of freight transported in the United States in 2005.

This equates to an all-time high carrying load of 10.7 billion tons, and $623 billion in revenue, representing84.3 percent of the nation’s freight bill. “These numbers show clearly that trucking is the driving force behindour great economy and a vital transportation link for domestic and international products,” said ATA Presidentand CEO Bill Graves. “Nearly every good consumed in the United States is put on a truck at some point,” hesaid.

American Trucking Trends, an annual state of the industry report, shows that trucking’s record numbersmirrored the performance of the U.S. economy, which “reached new heights” in 2005. Trends, produced byATA, reported that more than 26 million trucks of all classes played a part in reaching the forecast milestone.Of this number, 2.7 million were typical Class 8 tractor-trailer combinations operated by 565,000 interstatemotor carriers.

Class 8 trucks drove 117.8 billion miles of the total 388 billion miles of all weight classes used for businesspurposes in 2004. The nation’s truck fleet consumed 51.4 billion gallons of fuel, both diesel and gasoline. Thetrucking industry is on pace to spend nearly $100 billion on diesel fuel alone this year, up from $87.7 billion in2005. Commercial trucks paid $32.8 billion in federal and state highway-user taxes in 2004.

The trucking industry continues as a major employer in the United States, with more than 8.6 million peopleemployed in trucking-related jobs in 2004. Of these, 3.28 million are professional truck drivers.

Trucking also played an important role in trade exchanged between the United States and our largest tradingpartners Canada and Mexico. Trucks transported 81.9 percent of the value of trade between the United Statesand Mexico in 2004 and 65.7 percent of the value of trade between the United States and Canada.

American Trucking Trends 2005-2006, provides information on U.S. truck tonnage, employment, freightrevenues, shipment value, engine sales, modal share and international trucking. Topics explored also includesafety statistics, cost per mile analysis, top trailer manufacturers, highway-user taxes, U.S. motor carrier sizeand distribution, trucking employment by state, international trucking, fuel consumption and emissions data. n

TruckingInfo.com, July 6, 2006

July 13, 2006 | Page 5 of 5

Communications/EmailJuly 2006All articles appearing in Industry News are reprinted with permission. Industry News is a FedEx Publication. All rights reserved. 2006