Exhibit 99.1

For Immediate Release

Contacts:		Norman Black
		404-828-7593
		Andy Dolny
		404-828-8901

UPS RELEASES 3^RD QUARTER RESULTS

International and Supply Chain Businesses
Show Strength Despite Economic Weakness

     ATLANTA, Oct. 23, 2008 — UPS (NYSE:UPS) today reported diluted earnings per share of $0.96 for its third quarter on a 7.4% increase in revenue. This represents an 8.6% decline from the $1.05 per share reported on an adjusted basis for the comparable 2007 quarter. The company’s international and supply chain businesses demonstrated strength despite a challenging global economic environment.

     Unadjusted diluted earnings per share of $1.02 for the 2007 third quarter included a restructuring charge and related expenses for a supply chain business in France. Diluted earnings per share for this year’s third quarter declined 5.9% compared to this amount.

     “UPS managed the business well in this very tough economic climate,” said Scott Davis, UPS’s chairman and CEO. “We continue to see growth in our international and supply chain businesses while maintaining our focus on cost control and revenue management throughout our organization. UPS also is investing to ensure growth in the future so that the company will be even stronger when the global economy rebounds.”

										3Q 2007
Consolidated Results		3Q 2008				3Q 2007				Adjusted
Revenue		$	13.11	B		$	12.21	B
Operating profit		$	1.63	B		$	1.71	B		$	1.75	B
Operating margin			12.4	%			14.0	%			14.4	%
Average volume per day			14.85	M			15.25	M
Diluted earnings per share		$	0.96			$	1.02			$	1.05

     For the three months ended Sept. 30, 2008, consolidated revenue per piece increased 8.1% while package volume per day declined 2.6%. Operating profit declined 7% to $1.63 billion compared to adjusted operating profit last year. The decline was 4.4% on an unadjusted basis. Operating results were positively impacted by productivity gains and benefits from the two-month lag in fuel surcharges. These impacts were more than offset by economic deceleration and the high cost of fuel, which drove product mix changes.

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Cash Position

     For the first nine months of 2008, free cash flow remained strong at $4.6 billion, including $1 billion in U.S. federal tax refunds related to the company’s withdrawal from the Central States Pension Plan. The company:

	•		Repurchased 48.5 million shares at a cost of $3.3 billion.
	•		Paid $1.8 billion in dividends.
	•		Invested $2.1 billion in capital expenditures.
	•		Ended the quarter with $1.8 billion in cash and short-term investments.

     UPS experienced ample liquidity in the commercial paper market at very favorable rates.

U. S. Domestic Package		3Q 2008				3Q 2007
Revenue		$	7.84	B		$	7.55	B
Operating profit		$	1.12	B		$	1.23	B
Operating margin			14.2	%			16.3	%
Average volume per day			12.9	M			13.4	M

     Average daily U.S. domestic volume declined 3.4%, reflecting on-going weakness in the U.S. economy. Air products posted declines of 6.4% and ground volume decreased 2.8%. Domestic revenue per piece increased 5.8%, led by UPS Next Day Air® rising 11% as a result of higher fuel surcharges and continued focus on revenue management. Third quarter results were positively impacted by about $90 million due to the two-month lag in fuel surcharges.

     During the quarter, UPS expanded its customer service options for air package pick-up, enabling later pick-ups for urgent business needs for about one-quarter of all U.S. businesses.

International Package		3Q 2008				3Q 2007
Revenue		$	2.95	B		$	2.53	B
Operating profit		$	386	M		$	428	M
Operating margin			13.1	%			16.9	%
Average volume per day			1.90	M			1.84	M

     Export volume per day increased 7%, outpacing the market, despite decelerating economic growth in most areas of the world. The company’s broad global network and unique products, such as UPS Paperless^sm Invoice and international UPS Returns®, helped drive this gain. All major regions of the world posted solid volume increases although U.S. imports continued to decline. Revenue per piece was up 11.6%, aided by higher fuel surcharges and favorable foreign currency exchange rates.

     UPS completed a highly successful logistics effort for the Olympic Games in China as the company “delivered” the games to the world.

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     Investment in global infrastructure expansion also continued. In the fourth quarter, UPS will open its new hub in Shanghai. This is the first hub constructed by a U.S. carrier in China and will link all of China via Shanghai to UPS’s international network with direct service to the Americas, Europe and Asia.

										3Q 2007
Supply Chain and Freight		3Q 2008				3Q 2007				Adjusted
Revenue		$	2.32	B		$	2.13	B
Operating profit		$	129	M		$	52	M		$	98	M
Operating margin			5.6	%			2.4	%			4.6	%

     All units in this segment contributed to revenue growth of 9%. Operating profit improved more than 30% on 2007 adjusted results; on unadjusted results, the improvement more than doubled.

     The Forwarding and Logistics operations again demonstrated the momentum seen in the first half of the year. Customers have responded well to the enhanced air freight portfolio that UPS unveiled in January.

     UPS Freight Less-Than-Truckload performance was negatively impacted by the slowing U.S. economy. Nonetheless, the company is investing in this business to enhance its value proposition. UPS Freight recently announced time-in-transit improvements on more than 3,000 U.S. lanes. Over the past 18 months, UPS Freight has accelerated transit times on more than 12,000 lanes.

Outlook

     “We’ve taken steps to effectively manage our costs and enhance service levels in an environment that proved substantially worse than we initially anticipated, with significant slowing toward the end of the quarter,” said Kurt Kuehn, UPS’s chief financial officer.

     “Our focus on service, revenue management, cost reduction and our sound financial position will help us manage through these tough business conditions,” Kuehn continued. “We’ve implemented a range of initiatives to ensure our network operation matches demand.”

     The CFO also noted UPS reduced its 2008 capital expenditure budget by $200 million to $2.8 billion and expects to reduce 2009 capital expenditures as well.

     “Based on economic forecasts, we anticipate a challenging environment for a number of quarters going forward,” he added. “We believe the U.S. consumer will be very conservative with spending this year. But we still expect 2008 earnings per share should be toward the lower end of the $3.50-to-$3.70 range that we provided mid-year.”

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     UPS 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.

# # #

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

     UPS routinely posts investor announcements on its web site, investor.shareholder.com /ups, and encourages those interested in the company to check there frequently.

     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.

     In the first quarter of 2007, we recorded a $221 million pre-tax impairment charge related to aircraft and a $68 million pre-tax charge related to cash payouts and the acceleration of stock compensation and certain retiree healthcare benefits for employees who accepted a voluntary separation opportunity. We recorded a $46 million pre-tax charge in the third quarter of 2007 related to the restructuring and disposal of certain operations in France within the Supply Chain & Freight segment. We presented third quarter and year-to-date 2007 operating profit, operating margin, pre-tax income, net income and earnings per share excluding the impact of these items as we believe these adjusted measures better enable shareowners to focus on period-over-period operating performance. The underlying matters that produced the impairment charge and the charge related to the voluntary separation opportunity were unique, and we do not believe they are reflective of the types of charges that will affect future anticipated results. The restructuring charge reflected our exit of certain non-core lines of business in our Supply Chain & Freight operations, and we do not believe this charge is indicative of future operating results of our core forwarding, logistics, and freight operations.

     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 — Third Quarter
(unaudited)

		Three Months Ended
		September 30,								Change
		2008				2007				$				%
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
U.S. Domestic Package		$	7,841			$	7,545			$	296				3.9	%
International Package			2,949				2,529				420				16.6	%
Supply Chain & Freight			2,323				2,131				192				9.0	%
Total revenue			13,113				12,205				908				7.4	%
Operating expenses:
Compensation and benefits			6,425				6,253				172				2.8	%
Other			5,056				4,244				812				19.1	%
Total operating expenses			11,481				10,497				984				9.4	%
Operating profit:
U.S. Domestic Package			1,117				1,228				(111	)			-9.0	%
International Package			386				428				(42	)			-9.8	%
Supply Chain & Freight			129				52				77				148.1	%
Total operating profit			1,632				1,708				(76	)			-4.4	%
Other income (expense):
Investment income			(13	)			14				(27	)			-192.9	%
Interest expense			(104	)			(53	)			(51	)			96.2	%
Total other income (expense)			(117	)			(39	)			(78	)			200.0	%
Income before income taxes			1,515				1,669				(154	)			-9.2	%
Income tax expense			545				593				(48	)			-8.1	%
Net income		$	970			$	1,076			$	(106	)			-9.9	%
Net income as a percentage of revenue			7.4	%			8.8	%
Per share amounts
Basic earnings per share		$	0.96			$	1.02			$	(0.06	)			-5.9	%
Diluted earnings per share		$	0.96			$	1.02			$	(0.06	)			-5.9	%
Weighted-average shares outstanding
Basic			1,006				1,051				(45	)			-4.3	%
Diluted			1,013				1,058				(45	)			-4.3	%
As adjusted income data:
Operating profit:
U.S. Domestic Package		$	1,117			$	1,228			$	(111	)			-9.0	%
International Package			386				428				(42	)			-9.8	%
Supply Chain & Freight (1)			129				98				31				31.6	%
Total operating profit			1,632				1,754				(122	)			-7.0	%
Income before income taxes (1)		$	1,515			$	1,715			$	(200	)			-11.7	%
Net income (2)		$	970			$	1,107			$	(137	)			-12.4	%
Basic earnings per share (2)		$	0.96			$	1.05			$	(0.09	)			-8.6	%
Diluted earnings per share (2)		$	0.96			$	1.05			$	(0.09	)			-8.6	%

Certain prior year amounts have been reclassified to conform to the current year presentation.

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

		Three Months Ended
		September 30,								Change
		2008				2007				$ / #				%
Revenue (in millions):
U.S. Domestic Package:
Next Day Air		$	1,696			$	1,666			$	30				1.8	%
Deferred			818				782				36				4.6	%
Ground			5,327				5,097				230				4.5	%
Total U.S. Domestic Package			7,841				7,545				296				3.9	%
International Package:
Domestic			598				535				63				11.8	%
Export			2,165				1,831				334				18.2	%
Cargo			186				163				23				14.1	%
Total International Package			2,949				2,529				420				16.6	%
Supply Chain & Freight:
Forwarding and Logistics			1,619				1,486				133				9.0	%
Freight			598				546				52				9.5	%
Other			106				99				7				7.1	%
Total Supply Chain & Freight			2,323				2,131				192				9.0	%
Consolidated		$	13,113			$	12,205			$	908				7.4	%
Consolidated volume (in millions)			950				960				(10	)			-1.0	%
Operating weekdays			64				63
Average Daily Package Volume (in thousands):
U.S. Domestic Package:
Next Day Air			1,117				1,238				(121	)			-9.8	%
Deferred			859				874				(15	)			-1.7	%
Ground			10,971				11,291				(320	)			-2.8	%
Total U.S. Domestic Package			12,947				13,403				(456	)			-3.4	%
International Package:
Domestic			1,106				1,102				4				0.4	%
Export			792				740				52				7.0	%
Total International Package			1,898				1,842				56				3.0	%
Consolidated			14,845				15,245				(400	)			-2.6	%
Average Revenue Per Piece:
U.S. Domestic Package:
Next Day Air		$	23.72			$	21.36			$	2.36				11.0	%
Deferred			14.88				14.20				0.68				4.8	%
Ground			7.59				7.17				0.42				5.9	%
Total U.S. Domestic Package			9.46				8.94				0.52				5.8	%
International Package:
Domestic			8.45				7.71				0.74				9.6	%
Export			42.71				39.27				3.44				8.8	%
Total International Package			22.75				20.39				2.36				11.6	%
Consolidated		$	11.16			$	10.32			$	0.84				8.1	%

Certain prior year amounts have been reclassified to conform to the current year presentation.

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

		Nine Months Ended
		September 30,								Change
		2008				2007				$				%
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
U.S. Domestic Package		$	23,290			$	22,676			$	614				2.7	%
International Package			8,656				7,414				1,242				16.8	%
Supply Chain & Freight			6,843				6,210				633				10.2	%
Total revenue			38,789				36,300				2,489				6.9	%
Operating expenses:
Compensation and benefits			19,447				18,921				526				2.8	%
Other			14,763				12,548				2,215				17.7	%
Total operating expenses			34,210				31,469				2,741				8.7	%
Operating profit:
U.S. Domestic Package			2,975				3,361				(386	)			-11.5	%
International Package			1,214				1,274				(60	)			-4.7	%
Supply Chain & Freight			390				196				194				99.0	%
Total operating profit			4,579				4,831				(252	)			-5.2	%
Other income (expense):
Investment income			58				56				2				3.6	%
Interest expense			(342	)			(163	)			(179	)			109.8	%
Total other income (expense)			(284	)			(107	)			(177	)			165.4	%
Income before income taxes			4,295				4,724				(429	)			-9.1	%
Income taxes			1,546				1,701				(155	)			-9.1	%
Net income		$	2,749			$	3,023			$	(274	)			-9.1	%
Net income as a percentage of revenue			7.1	%			8.3	%
Per share amounts
Basic earnings per share		$	2.69			$	2.85			$	(0.16	)			-5.6	%
Diluted earnings per share		$	2.67			$	2.84			$	(0.17	)			-6.0	%
Weighted average shares outstanding
Basic			1,021				1,060				(39	)			-3.7	%
Diluted			1,028				1,066				(38	)			-3.6	%
As adjusted income data:
Operating profit:
U.S. domestic package (1)		$	2,975			$	3,573			$	(598	)			-16.7	%
International package (1)			1,214				1,343				(129	)			-9.6	%
Supply chain and freight (1)			390				250				140				56.0	%
Total operating profit			4,579				5,166				(587	)			-11.4	%
Income before income taxes (1)		$	4,295			$	5,059			$	(764	)			-15.1	%
Net income (2)		$	2,749			$	3,238			$	(489	)			-15.1	%
Basic earnings per share (2)		$	2.69			$	3.05			$	(0.36	)			-11.8	%
Diluted earnings per share (2)		$	2.67			$	3.04			$	(0.37	)			-12.2	%

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

		Nine Months Ended
		September 30,								Change
		2008				2007				$ / #				%
Revenue (in millions):
U.S. Domestic Package:
Next Day Air		$	4,982			$	5,003			$	(21	)			-0.4	%
Deferred			2,412				2,376				36				1.5	%
Ground			15,896				15,297				599				3.9	%
Total U.S. Domestic Package			23,290				22,676				614				2.7	%
International Package:
Domestic			1,803				1,563				240				15.4	%
Export			6,332				5,412				920				17.0	%
Cargo			521				439				82				18.7	%
Total International Package			8,656				7,414				1,242				16.8	%
Supply Chain & Freight:
Forwarding and Logistics			4,817				4,337				480				11.1	%
Freight			1,707				1,583				124				7.8	%
Other			319				290				29				10.0	%
Total Supply Chain & Freight			6,843				6,210				633				10.2	%
Consolidated		$	38,789			$	36,300			$	2,489				6.9	%
Consolidated volume (in millions)			2,877				2,890				(13	)			-0.4	%
Operating weekdays			192				191
Average Daily Package Volume (in thousands):
U.S. Domestic Package:
Next Day Air			1,166				1,248				(82	)			-6.6	%
Deferred			882				903				(21	)			-2.3	%
Ground			11,036				11,156				(120	)			-1.1	%
Total U.S. Domestic Package			13,084				13,307				(223	)			-1.7	%
International Package:
Domestic			1,111				1,097				14				1.3	%
Export			789				728				61				8.4	%
Total International Package			1,900				1,825				75				4.1	%
Consolidated			14,984				15,132				(148	)			-1.0	%
Average Revenue Per Piece:
U.S. Domestic Package:
Next Day Air		$	22.25			$	20.99			$	1.26				6.0	%
Deferred			14.24				13.78				0.46				3.3	%
Ground			7.50				7.18				0.32				4.5	%
Total U.S. Domestic Package			9.27				8.92				0.35				3.9	%
International Package:
Domestic			8.45				7.46				0.99				13.3	%
Export			41.80				38.92				2.88				7.4	%
Total International Package			22.30				20.01				2.29				11.4	%
Consolidated		$	10.92			$	10.26			$	0.66				6.4	%

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

		Preliminary
		Year-to-Date
(amounts in millions)		September 30, 2008
Net cash from operations		$	6,969
Capital expenditures			(2,108	)
Proceeds from disposals of PP&E			104
Net change in finance receivables			(132	)
Other investing activities			(268	)
Free cash flow		$	4,565

Amounts are subject to reclassification.

Certain prior year amounts have been reclassified to conform to the current year presentation