UPS Rates Going UP

As 2009 approaches, we would like to express our sincere appreciation for your continued business. We'd also like to inform you of the changes in small package and less-than-truckload (LTL) freight rates that will take effect January 5, 2009.

UPS published rates will change as follows*: The average UPS Ground and UPS Standard to Canada rate increase and UPS Freight^® LTL General Rate Increase will be 5.9%. Air and International services will increase an average net 4.9% through a combination of a 6.9% increase in rates and a 2% reduction in the Air and International Fuel Surcharge index.

Updated rate and service information will be available at ups.com/rates on the following dates:

• October 24, 2008: Preview UPS Ground, Air and International express rates (Standard to Canada available as well) and accessorials.
• December 18, 2008: Pre-order or download the 2009 UPS Rate and Service Guide. Guides will start shipping at the end of December.
• January 5, 2009: View UPS Freight LTL rates (also posted on www.ltl.upsfreight.com)

We continue to make investments to support your business by enhancing our technology solutions and introducing innovative, industry-leading international services such as UPS Paperless Invoice^SM. Recently, UPS On-Call Pickup^® service was significantly enhanced to provide later package pickup times for 26% of all U.S. businesses. We also expanded our express morning delivery area by an additional 1,200 postal codes. UPS continues to deliver to more countries than anyone from the U.S. by 9:00 a.m. and before noon. UPS Next Day Air^® Early A.M.^® coverage will be expanded in 2009, providing additional earlier delivery times for urgent shipments. In addition, time-in-transit for 4,000 LTL freight lanes was improved this year.

*The impact of these changes on your shipping costs will vary according to your shipping characteristics and the terms of your agreement with UPS and UPS Freight.