FedEx Freight, FedEx National LTL Announce General Rate Increase

MEMPHIS, Tenn.--(BUSINESS WIRE)--FedEx Freight and FedEx National LTL, the less-than- truckload (LTL) subsidiaries of FedEx Corp. (NYSE: FDX) will implement a 5.59 percent general rate increase (GRI) effective April 2, 2007. Rates for other operating companies within FedEx Corp., specifically FedEx Express and FedEx Ground, are not affected. FedEx Freight is a leading U.S. provider of regional and inter-regional LTL freight services. FedEx National LTL is a leading provider of long-haul LTL freight services.

“Whether operating fast cycle logistics or planned distribution, shippers have told us they require a high degree of certainty, shipment integrity and actionable information. In order to meet these customer needs, FedEx Freight and FedEx National LTL are continuing to invest in our people, equipment, facilities and technology”

“Whether operating fast cycle logistics or planned distribution, shippers have told us they require a high degree of certainty, shipment integrity and actionable information. In order to meet these customer needs, FedEx Freight and FedEx National LTL are continuing to invest in our people, equipment, facilities and technology,” said Dennie Carey, senior vice president, marketing, FedEx Freight.

In the past year, FedEx Freight has improved service in almost 3,000 lanes, added safety features to new, environmentally compliant tractors and made it easier to access both its regional and long-haul service via the internet. Since acquiring the business assets of Watkins Motor Lines in September, FedEx National LTL has re-engineered its operations to focus on the long-haul market with a highly engineered network, similar to FedEx Freight’s operations in the regional market.

The increase will apply to interstate and intrastate traffic, and selected shipments between the United States and Mexico and Canada. Various additional adjustments will include minimum and accessorial charges, as well as additional adjustments in select lanes and service areas. After April 2, the new base rate and rules tariffs for FedEx Freight will be available on the company’s Web site, www.fedex.com/us/freight/main/ and new base rates and rules tariffs for FedEx National LTL will be available at http://fedex.com/us/national/main/. Customers may access rate quotes via these sites.

About FedEx Freight

Within FedEx Corp., the FedEx Freight Segment had annual revenues of $3.6 billion in fiscal year 2006. The Segment includes FedEx Freight, a leading U.S. provider of regional next-day and second-day and interregional LTL freight services. FedEx Freight is known for exceptional service, reliability and on-time performance. Through a comprehensive network of nearly 330 service centers and advanced information systems, FedEx Freight provides service to virtually all U.S. ZIP codes, including Alaska and Hawaii. The carrier's regional and interregional LTL service is supported by a no-fee money-back guarantee on all eligible continental U.S. shipments. Internationally, the company serves Canada, Mexico, Puerto Rico, Central and South America, the Caribbean, Europe and Asia. With corporate offices in Memphis, Tenn., the FedEx Freight Segment also includes FedEx National LTL, a leading provider of long-haul LTL services throughout North America; FedEx Freight Canada, an LTL operating company serving most points in Canada; FedEx Custom Critical, North America's largest time-specific, critical shipment carrier; and Caribbean Transportation Services, the leading provider of airfreight forwarding services between the United States and Puerto Rico. For more information, visit the FedEx web site, www.fedex.com.

About FedEx Corp.

FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $34 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 275,000 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 www.fedex.com.

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