Date: May 23, 2007

UPS “Green Fleet” Expands with 50 Hybrid Electric Vehicles

UPS issued the following news release for vehicles that will utilize Eaton’s hybrid power system

ATLANTA UPS (NYSE:UPS) today announced its fleet of alternative-fuel vehicles - already the industry's largest - had expanded with the deployment of 50 next-generation hybrid electric delivery trucks.

The 50 hybrid electric vehicles (HEVs) will operate in Atlanta, Dallas, Houston and Phoenix. These new trucks join roughly 20,000 low-emission and alternative-fuel vehicles already in use.

"We're excited to be among the first to deploy the latest in HEV technology because it promises a 45% increase in fuel economy in addition to a dramatic decrease in vehicle emissions," said Robert Hall, Director of UPS Ground Fleet Engineering.

The 50 new HEV package cars are expected to reduce fuel consumption by roughly 44,000 gallons over the course of a year compared to an equivalent number of traditional diesel trucks. The hybrids also should reduce by 457 metric tons the amount of CO2 gases released annually into the atmosphere.

The new hybrid power system allows UPS to use a smaller diesel engine than would be required in a conventional delivery truck, thus saving on fuel and pollution-causing emissions. A battery pack, motor/generator and power control system are added, which allows electric power to be fed into the powertrain when conditions demand it, providing further savings.

The hybrid electric vehicles also use what is known as regenerative braking, meaning the energy generated when stopping the moving vehicle is captured and returned to the battery system as electrical energy. The efficient, computer-controlled combination of clean diesel power, electric power and regenerative braking allows dramatic improvements in fuel savings and emissions reductions.

The HEV fleet will feature two different size vehicles from Workhorse Custom Chassis and Freightliner LLC and a hybrid power system from Eaton Corporation. The external truck bodies will be identical to the company's other signature brown trucks, although they will feature additional script on the side identifying them as hybrid electrics. The trucks will operate with lithium ion batteries, which offer a faster re-charging capability and last longer than batteries
used in previous generations of HEVs. Additionally, these vehicles are much quieter than conventional UPS trucks.

UPS has agreed to work with the U.S. Energy Department over the course of 2007 to share the vehicles' fuel economy, emissions and other performance data.

The UPS alternative fuel fleet currently includes trucks powered by compressed natural gas, liquefied natural gas, propane and electricity. UPS also has been testing hydrogen fuel cell vehicles and hydraulic hybrid technology in partnership with the Environmental Protection Agency and others. Just since 2000, the alternative-fuel fleet has traveled more than 126 million miles.

UPS was the first package delivery company to introduce a HEV into daily operations with a research program it launched in early 1998. In 2001, the company deployed the industry's first hybrid electric package car into regular service in Huntsville, Ala., where the truck worked a 31-mile route with about 160 pickups and deliveries each day. UPS then introduced its second generation HEV to its Kalamazoo, Mich., fleet in 2004, while at the same time deploying the first hydrogen fuel cell delivery trucks into regular service.

While continuing to develop its alternative fuel fleet - UPS has invested more than $15 million in the effort - the company also has purchased and is operating more than 19,000 low emission conventional vehicles. These vehicles have regular gas- and diesel-powered engines but employ the very latest technology and manufacturing techniques to reduce emissions as much as possible.

"Our long-term goal is to minimize dependence on fossil fuels and we will get there by deploying a wide variety of new automotive technologies in our fleet," Hall said.

UPS, which is celebrating its 100th birthday this year, is the world's largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the movement of goods, information and funds. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide. UPS's stock trades on the New York Stock Exchange (UPS) and the company can be found on the Web at UPS.com. To get UPS news direct, visit pressroom.ups.com/RSS.

Contacts:

Heather Robinson, UPS (404) 828-6384

Gary Klasen, Eaton External Communications (216) 523-4736