FedEx Responds to Europe-Asia Trade Growth by Doubling Capacity

PARIS, France - June 1, 2005 - Citing rapidly increasing trade activity between the European Union and Asia, FedEx Express, a division of FedEx Corp. (FDX: NYSE), today announced plans to add an additional daily flight from Europe to India beginning in Fall 2005.

The new flight, using a wide-bodied MD-11 freighter, will double current FedEx Express capacity, adding more than 850,000 lbs. per week to support fast-growing demand for European products.

“Asian demand for European products has been strong over the past five years,” said Dr. Gene Huang, chief economist at FedEx Express, speaking to reporters at the FedEx hub at Paris ’ Charles de Gaulle airport.

According to Huang, more than 17 percent of EU exports are sent to Asia and exports to Asia grew by 23 percent in 2004. The average annual growth rate for Europe-to-Asia exports for 2000-2004 was 13 percent.

“The new flight will depart from our hub at Charles de Gaulle International airport in Paris for India ,” said Michael L. Ducker, executive vice president, FedEx Express. “Together with recent enhancements to our FedEx European network, it gives our customers at both ends of this important trade route fast and reliable service between two of the largest marketplaces in the world.

“Customers recognize our commitment and experience in the Indian market.” said Ducker. “FedEx was the first to fly all-cargo flights into India . Today, largely due to our investment in technology and innovative service solutions, we lead the way in addressing our customers’ industry-sector needs.

“As India ‘s economy continues to grow, we are seeing increased movement of goods by air express from the garment, pharmaceutical, electronics and IT sectors. We applaud the Indian Government’s recent growth and investment-oriented budget, their commitment to Open Skies deals and the reduction in duties on imports of machinery and technology vital to the expansion of the leather and footwear industry. We believe the economic benefits that trade liberalization can deliver to India will further cement the nation’s position in the global marketplace.”

About FedEx

FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $29 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 250,000 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 fedex.com.

About FedEx Express

FedEx Express, a subsidiary of FedEx Corp., connects areas that generate 90% of the world’s gross domestic product in one to three business days with door-to-door, customs-cleared service and a money-back guarantee. The company’s unmatched air route authorities and infrastructure make it the world’s largest express transportation company, providing fast, reliable and time-definite transportation of approximately 3.2 million packages to more than 220 countries and territories each working day. FedEx Express employs more than 137,000 employees and has approximately 50,000 drop-off locations, 663 aircraft and more than 41,000 motorized vehicles in its integrated global network.