UPS Shenzhen Intra-Asia Hub on Track to Open for Business in Q1 2010

Shenzhen, July 30, 2009

UPS and Shenzhen Customs Sign MOU that Enables 24/7 Customs Clearance at Hub

UPS (NYSE:UPS) and the Shenzhen Customs authority signed a memorandum of understanding (MOU) today to seal the terms of their partnership at the soon-to-be-completed UPS intra-Asia hub. Located at China's Shenzhen International Airport, the hub will not only serve as a gateway for UPS customers to easily access markets in the region, but will also be a major boost to the development of the air freight industry in the special economic zone. The MOU was signed by Wu Qiang, Director, Shenzhen Airport Customs and K.M. Liu, Senior Vice President, Transportation Group, UPS Asia Pacific Region in the presence of Zhang Siping, Vice Mayor of Shenzhen.

"We believe the new hub will greatly boost export developments in the Pearl River Delta region and increase the total volume of freight transportation and employment level," said Shi Fushen, Deputy Director General, Shenzhen Customs Provincial HQ. "As the UPS hub will play a significant role in the economic development of the region, we believe it will also boost the development of Shenzhen’s air freight industry. We will fully support UPS’s development in Shenzhen."

Through the MOU, Shenzhen Customs will offer a full suite of customs services at the UPS intra-Asia hub. It will support the setting up of a bonded warehouse. UPS and Shenzhen Customs will also jointly develop a risk management system to enhance and increase the efficiency of customs clearance processes while ensuring rigorous supervision.

Apart from the customs operations at the hub, the MOU also enables express cross-border clearance at the Hong Kong/Shenzhen highway port for UPS vehicles heading towards or exiting the hub. This will help reduce traveling time and cost when connecting with the Hong Kong airport.

"China remains UPS’s number one priority in our international business strategy, and we believe the Pearl River Delta holds enormous economic opportunities as it develops further," said K.M. Liu. "We are extremely grateful to Shenzhen Customs for their support and cooperation and look forward to working with them."

Recognized as one of the key construction projects by the Shenzhen government, the UPS Shenzhen Intra-Asia hub has been given priority by Shenzhen Customs. A working team has been set up by Shenzhen Customs to support the hub’s development in the area of customs clearance. Both parties have worked closely in the planning and construction phases of the project. The close working relationship has contributed greatly to the progress of the hub.

The UPS Shenzhen Intra-Asia Hub which broke ground on October 24, 2008 is built at a cost of US$180 million (RMB1.24 billion) and will initially employ more than 400 people. When completed, the UPS intra-Asia hub will have a bonded warehouse with round-the-clock customs facilities seven days a week to handle international cargo and express shipments. This feature will benefit enterprises in the Pearl River Delta region by giving them the advantage of speedy customs clearance, especially for critical service parts of a manufacturing process. In addition, the strategic location of UPS’s Shenzhen Intra-Asia Hub will enable shorter transit time between burgeoning Asian trade lanes. The hub will operate with a sorting capacity of 18,000 items per hour which is expandable to 36,000 items per hour.