Exhibit 99.1

For Immediate Release

Contacts:		Norman Black, Public Relations 404-828-7593 Andy Dolny, Investor Relations 404-828-8901

UPS RELEASES 2Q RESULTS

Earnings Decline Caused by Economic Weakness, Fuel Costs;
Supply Chain & Freight Continues to Exceed Expectations

     ATLANTA, July 22, 2008 — UPS (NYSE:UPS) today reported a 6.7% revenue increase in the second quarter but an 18.3% decline in diluted earnings per share to $0.85 compared to $1.04 the prior year. Increasing fuel costs and a stagnant U.S. economy caused the earnings decline in both the U.S. Domestic and International Package segments.

     In contrast, the Supply Chain and Freight segment posted a substantial improvement in profitability.

     “Although operating conditions in the second quarter were challenging, UPS firmly believes the long-term growth fundamentals for our company and for our industry are very favorable,” said Scott Davis, UPS chairman and CEO. “We are helping our customers manage through this difficult period while doing everything we can inside UPS to adapt to current conditions.”

Consolidated Results		2Q 2008				2Q 2007
Revenue		$	13.00	B		$	12.19	B
Operating profit		$	1.45	B		$	1.77	B
Operating margin			11.2	%			14.5	%
Average volume per day			15.0	M			15.0	M
Diluted earnings per share		$	0.85			$	1.04

     For the three months ended June 30, 2008, UPS delivered consolidated volume of 959 million packages, essentially unchanged from the second quarter last year. Revenue rose to $13.0 billion and revenue per piece increased 5.9%. Results were negatively affected by a 67% increase in fuel expense, a reduction in premium product volumes and weakness in U.S. imports.

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Cash Position

     For the first six months of 2008, free cash flow remained strong at $3.4 billion, including approximately $1 billion in U.S. federal cash tax benefits related to the company’s withdrawal from the Central States Pension Plan. The company also:

•

Purchased 34.8 million shares at a cost of $2.4 billion.

•

Paid dividends totaling $1.3 billion.

•

Invested $1.4 billion in capital expenditures.

•

Ended the quarter with $1.7 billion in cash and short-term investments.

U.S. Domestic Package		2Q 2008				2Q 2007
Revenue		$	7.71	B		$	7.58	B
Operating profit		$	0.90	B		$	1.19	B
Operating margin			11.7	%			15.7	%
Average volume per day			13.1	M			13.2	M

     The slow U.S. economy caused average daily volume in the United States to decline 1.3% in the quarter and also contributed to a more pronounced reduction in premium products than in the previous quarter. Volumes per day declined 6.1% for Next Day Air^®, 2.3% for deferred air and 0.7% for ground. Consolidated revenue per piece rose 3.1%, increasing for all services.

     These factors, along with the rapid increase in fuel cost and the impact of the two-month lag in the application of the fuel surcharge, were responsible for the declines in second quarter operating results.

     During the quarter, UPS and DHL announced they were working on a 10-year agreement through which UPS would provide air lift for DHL’s express, deferred and international volume within the U.S. and between the U.S., Canada and Mexico.

International Package		2Q 2008				2Q 2007
Revenue		$	2.95	B		$	2.50	B
Operating profit		$	407	M		$	475	M
Operating margin			13.8	%			19.0	%
Average volume per day			1.93	M			1.80	M

     International results were negatively impacted by higher fuel costs, declining U.S. import volume and slower growth in premium services in the major regions of the world.

     Export volume increased an industry-leading 10.2%, aided by the calendar effect of an early Easter, which boosted growth rates by approximately 2%. However, volume growth slowed significantly through the quarter.

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     During the period, UPS continued its global investments. In the United Kingdom, the company completed network integration of Tamworth, its largest ground hub outside the U.S. In Asia, UPS announced construction of an intra-Asia hub in Shenzhen, China; initiated five weekly flights to Nagoya, Japan, and concluded the buyout of its joint venture partner in Korea.

Supply Chain and Freight		2Q 2008				2Q 2007
Revenue		$	2.34	B		$	2.11	B
Operating profit		$	148	M		$	98	M
Operating margin			6.3	%			4.6	%

     Segment revenue increased almost 11% with operating profit climbing more than 50%. Results were driven by the continued strong performance of the Forwarding and Logistics businesses. During the quarter, UPS announced an expansion of its logistics campus in Burlington, Ontario, to address healthcare and high-tech customers’ needs.

     UPS Freight LTL revenue grew 7.2%, but shipments declined 2.3% as a consequence of the stagnant U.S. economy. UPS Freight expanded its reliability guarantee on shipments to and from Canada and introduced time-in-transit enhancements to 1,000 lanes in the United States.

Outlook

     “Slow U.S. economic activity and fuel price increases hit us and our customers during the quarter,” said Kurt Kuehn, UPS’s chief financial officer. “Even though economists do not predict a recovery until 2009, we anticipate that the second half of 2008 will generate modestly better results than the first half, assuming business conditions do not worsen. Therefore, we are providing earnings-per-share guidance for 2008 within a range of $3.50 to $3.70. This translates to a range of $1.78-to-$1.98 for the second half compared to $1.72 for the first half.”

     Kuehn pointed out that comparisons to last year’s results would be more difficult in the third quarter and moderate in the fourth.

     “We are taking the necessary steps to control costs, add value for customers and grow our business while adjusting to the realities of today’s challenging environment,” Kuehn added.

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     UPS (NYSE: UPS) is the world’s largest package delivery company and a global leader in supply chain and freight services. With more than a century of experience in transportation and logistics, UPS is a leading global trade expert equipped with a broad portfolio of solutions. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide. The company can be found on the Web at UPS.com. To get UPS news direct, visit pressroom.ups.com/RSS.

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     EDITOR’S NOTE: UPS Chairman and CEO Scott Davis and CFO Kurt Kuehn will discuss second quarter results with investors and analysts during a conference call at 8:30 a.m. EDT today. That call is open to listeners through a live Webcast. To access the call, go to www.shareholder.com/UPS and click on “Earnings Webcast.”

     We supplement the reporting of our financial information determined under generally accepted accounting principles (GAAP) with certain non-GAAP financial measures, including, as applicable, “as adjusted” operating profit, operating margin, pre-tax income, net income and earnings per share. We believe that these adjusted measures provide meaningful information to assist investors and analysts in understanding our financial results and assessing our prospects for future performance. We believe these adjusted financial measures are important indicators of our recurring operations because they exclude items that may not be indicative of or are unrelated to our core operating results, and provide a better baseline for analyzing trends in our underlying businesses. Furthermore, we use these adjusted financial measures to determine awards for our management personnel under our incentive compensation plans. We also provide the amount of our free cash flow to supplement our cash flow determined under GAAP. We define free cash flow as net cash from operating activities adjusted for capital expenditures, proceeds from disposals of property, plant and equipment, net change in finance receivables and other investing activities. We believe free cash flow is an important measure in assessing the generation of cash for discretionary investments and dividends.

     Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. These adjusted financial measures should not be considered in isolation or as a substitute for GAAP operating profit, operating margin, net income and earnings per share, the most directly comparable GAAP financial measures. These non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results and the preceding reconciliations to corresponding GAAP financial measures, provide a more complete understanding of our business. We strongly encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

     Except for historical information contained herein, the statements made in this release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements, including statements regarding the intent, belief or current expectations of UPS and its management regarding the company’s strategic directions, prospects and future results, involve certain risks and uncertainties. Certain factors may cause actual results to differ materially from those contained in the forward-looking statements, including economic and other conditions in the markets in which we operate, governmental regulations, our competitive environment, strikes, work stoppages and slowdowns, increases in aviation and motor fuel prices, cyclical and seasonal fluctuations in our operating results, and other risks discussed in the company’s Form 10-K and other filings with the Securities and Exchange Commission, which discussions are incorporated herein by reference.

United Parcel Service, Inc.
Selected Financial Data — Second Quarter
(unaudited)

		Three Months Ended
		June 30,								Change
		2008				2007				$				%
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
U.S. Domestic Package		$	7,714			$	7,579			$	135				1.8	%
International Package			2,948				2,500				448				17.9	%
Supply Chain & Freight			2,339				2,110				229				10.9	%
Total revenue			13,001				12,189				812				6.7	%
Operating expenses:
Compensation and benefits			6,522				6,327				195				3.1	%
Other			5,025				4,097				928				22.7	%
Total operating expenses			11,547				10,424				1,123				10.8	%
Operating profit:
U.S. Domestic Package			899				1,192				(293	)			-24.6	%
International Package			407				475				(68	)			-14.3	%
Supply Chain & Freight			148				98				50				51.0	%
Total operating profit			1,454				1,765				(311	)			-17.6	%
Other income (expense):
Investment income			14				28				(14	)			-50.0	%
Interest expense			(104	)			(61	)			(43	)			70.5	%
Total other income (expense)			(90	)			(33	)			(57	)			172.7	%
Income before income taxes			1,364				1,732				(368	)			-21.2	%
Income tax expense			491				628				(137	)			-21.8	%
Net income		$	873			$	1,104			$	(231	)			-20.9	%
Net income as a percentage of revenue			6.7	%			9.1	%
Per share amounts
Basic earnings per share		$	0.86			$	1.04			$	(0.18	)			-17.3	%
Diluted earnings per share		$	0.85			$	1.04			$	(0.19	)			-18.3	%
Weighted-average shares outstanding
Basic			1,021				1,060				(39	)			-3.7	%
Diluted			1,029				1,066				(37	)			-3.5	%

United Parcel Service, Inc.
Selected Operating Data — Second Quarter
(unaudited)

		Three Months Ended
		June 30,								Change
		2008				2007				$ / #				%
Revenue (in millions):
U.S. Domestic Package:
Next Day Air		$	1,648			$	1,684			$	(36	)			-2.1	%
Deferred			789				792				(3	)			-0.4	%
Ground			5,277				5,103				174				3.4	%
Total U.S. Domestic Package			7,714				7,579				135				1.8	%
International Package:
Domestic			622				517				105				20.3	%
Export			2,145				1,834				311				17.0	%
Cargo			181				149				32				21.5	%
Total International Package			2,948				2,500				448				17.9	%
Supply Chain & Freight:
Forwarding and Logistics			1,635				1,465				170				11.6	%
Freight			596				549				47				8.6	%
Other			108				96				12				12.5	%
Total Supply Chain & Freight			2,339				2,110				229				10.9	%
Consolidated		$	13,001			$	12,189			$	812				6.7	%
Consolidated volume (in millions)			959				962				(3	)			-0.3	%
Operating weekdays			64				64
Average Daily Package Volume (in thousands):
U.S. Domestic Package:
Next Day Air			1,183				1,260				(77	)			-6.1	%
Deferred			878				899				(21	)			-2.3	%
Ground			10,999				11,071				(72	)			-0.7	%
Total U.S. Domestic Package			13,060				13,230				(170	)			-1.3	%
International Package:
Domestic			1,127				1,077				50				4.6	%
Export			798				724				74				10.2	%
Total International Package			1,925				1,801				124				6.9	%
Consolidated			14,985				15,031				(46	)			-0.3	%
Average Revenue Per Piece:
U.S. Domestic Package:
Next Day Air		$	21.77			$	20.88			$	0.89				4.3	%
Deferred			14.04				13.77				0.27				2.0	%
Ground			7.50				7.20				0.30				4.2	%
Total U.S. Domestic Package			9.23				8.95				0.28				3.1	%
International Package:
Domestic			8.62				7.50				1.12				14.9	%
Export			42.00				39.58				2.42				6.1	%
Total International Package			22.46				20.40				2.06				10.1	%
Consolidated		$	10.93			$	10.32			$	0.61				5.9	%

United Parcel Service, Inc.
Selected Financial Data — Year to Date
(unaudited)

		Six Months Ended
		June 30,								Change
		2008				2007				$				%
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
U.S. Domestic Package		$	15,449			$	15,131			$	318				2.1	%
International Package			5,707				4,885				822				16.8	%
Supply Chain & Freight			4,520				4,079				441				10.8	%
Total revenue			25,676				24,095				1,581				6.6	%
Operating expenses:
Compensation and benefits			13,022				12,668				354				2.8	%
Other			9,707				8,304				1,403				16.9	%
Total operating expenses			22,729				20,972				1,757				8.4	%
Operating profit:
U.S. Domestic Package			1,858				2,133				(275	)			-12.9	%
International Package			828				846				(18	)			-2.1	%
Supply Chain & Freight			261				144				117				81.3	%
Total operating profit			2,947				3,123				(176	)			-5.6	%
Other income (expense):
Investment income			71				42				29				69.0	%
Interest expense			(238	)			(110	)			(128	)			116.4	%
Total other income (expense)			(167	)			(68	)			(99	)			145.6	%
Income before income taxes			2,780				3,055				(275	)			-9.0	%
Income taxes			1,001				1,108				(107	)			-9.7	%
Net income		$	1,779			$	1,947			$	(168	)			-8.6	%
Net income as a percentage of revenue			6.9	%			8.1	%
Per share amounts
Basic earnings per share		$	1.73			$	1.83			$	(0.10	)			-5.5	%
Diluted earnings per share		$	1.72			$	1.82			$	(0.10	)			-5.5	%
Weighted average shares outstanding
Basic			1,029				1,065				(36	)			-3.4	%
Diluted			1,036				1,070				(34	)			-3.2	%
As adjusted income data:
U.S. domestic package (1)		$	1,858			$	2,345			$	(487	)			-20.8	%
International package (1)			828				915				(87	)			-9.5	%
Supply chain and freight (1)			261				152				109				71.7	%
Total operating profit			2,947				3,412				(465	)			-13.6	%
Income before income taxes (1)		$	2,780			$	3,344			$	(564	)			-16.9	%
Net income (2)		$	1,779			$	2,131			$	(352	)			-16.5	%
Basic earnings per share (2)		$	1.73			$	2.00			$	(0.27	)			-13.5	%
Diluted earnings per share (2)		$	1.72			$	1.99			$	(0.27	)			-13.6	%

United Parcel Service, Inc.
Selected Operating Data — Year to Date
(unaudited)

		Six Months Ended
		June 30,								Change
		2008				2007				$ / #				%
Revenue (in millions):
U.S. Domestic Package:
Next Day Air		$	3,286			$	3,337			$	(51	)			-1.5	%
Deferred			1,594				1,594				—				0.0	%
Ground			10,569				10,200				369				3.6	%
Total U.S. Domestic Package			15,449				15,131				318				2.1	%
International Package:
Domestic			1,205				1,028				177				17.2	%
Export			4,167				3,581				586				16.4	%
Cargo			335				276				59				21.4	%
Total International Package			5,707				4,885				822				16.8	%
Supply Chain & Freight:
Forwarding and Logistics			3,198				2,851				347				12.2	%
Freight			1,109				1,037				72				6.9	%
Other			213				191				22				11.5	%
Total Supply Chain & Freight			4,520				4,079				441				10.8	%
Consolidated		$	25,676			$	24,095			$	1,581				6.6	%
Consolidated volume (in millions)			1,927				1,930				(3	)			-0.1	%
Operating weekdays			128				128
Average Daily Package Volume (in thousands):
U.S. Domestic Package:
Next Day Air			1,191				1,253				(62	)			-4.9	%
Deferred			894				918				(24	)			-2.6	%
Ground			11,069				11,089				(20	)			-0.2	%
Total U.S. Domestic Package			13,154				13,260				(106	)			-0.8	%
International Package:
Domestic			1,114				1,095				19				1.7	%
Export			788				723				65				9.0	%
Total International Package			1,902				1,818				84				4.6	%
Consolidated			15,056				15,078				(22	)			-0.1	%
Average Revenue Per Piece:
U.S. Domestic Package:
Next Day Air		$	21.55			$	20.81			$	0.74				3.6	%
Deferred			13.93				13.57				0.36				2.7	%
Ground			7.46				7.19				0.27				3.8	%
Total U.S. Domestic Package			9.18				8.91				0.27				3.0	%
International Package:
Domestic			8.45				7.33				1.12				15.3	%
Export			41.31				38.70				2.61				6.7	%
Total International Package			22.07				19.81				2.26				11.4	%
Consolidated		$	10.80			$	10.23			$	0.57				5.6	%

United Parcel Service, Inc.
Reconciliation of Free Cash Flow
(unaudited)

		Preliminary
		Year-to-Date
(amounts in millions)		June 30, 2008
Net cash from operations		$	5,019
Capital expenditures			(1,387	)
Proceeds from disposals of PP&E			71
Net change in finance receivables			(66	)
Other investing activities			(254	)
Free cash flow		$	3,383

Amounts are subject to reclassification.