Press release dated February 29, 2008

Exhibit 99.1

For Immediate Release

Contacts:

Norman Black, Public Relations

404-828-7593

Mark Vale, Investor Relations

404-828-6703

UPS REPORTS REVISED RESULTS

2007 Adjusted Diluted EPS Reduced to $4.11

On Revisions to Tax Calculation

ATLANTA, Feb. 29, 2008 – On Jan. 30, 2008, UPS (NYSE: UPS) reported an 8% increase in adjusted diluted earnings per share to $4.17 for the full year of 2007. Following the release of this information, in completing the company’s financial statements for 2007, UPS identified a state income tax benefit of $65 million that was incorrectly recorded in the fourth quarter.

The tax benefit was related to UPS’s withdrawal from the Central States multi-employer pension plan. This error was discovered by the Company during its regular internal review process prior to the filing of its Form 10-K for 2007. Correcting this error has reduced adjusted diluted earnings per share to $4.11 for the full year, a 6.5% increase over the prior year.

The correction has no impact on revenue, operating profit (loss), income (loss) before taxes or segment results for the fourth quarter or the full year of 2007, nor does it impact cash flow or liquidity.

For the 4^th quarter, UPS originally reported adjusted diluted earnings per share of $1.13. The revised adjusted diluted earnings per share are $1.07.

On an unadjusted basis, UPS previously reported a loss per diluted share of $2.46 for the quarter and a diluted profit per share of $0.42 for the full year. Those figures now are a loss of $2.52 per share and a profit of $0.36, respectively.

UPS’s previous estimates for 2008 earnings per share remain unchanged at $0.94-to-$0.98 for the first quarter and $4.30-to-$4.50 for the full year, as does the company’s estimated effective tax rate for 2008 of approximately 36%.

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.

# # #

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.

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. Additionally, in the fourth quarter of 2007, we recorded a $6.100 billion charge in our U.S. Domestic Package segment in connection with our withdrawal from the Central States, Southeast and Southwest Areas Pension Fund. We presented fourth quarter and full-year 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, the pension withdrawal 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 - Fourth Quarter

(unaudited)


	Three Months Ended
	December 31,						Change
	2007			2006			$			%
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
U.S. Domestic Package	$	8,309		$	8,129		$	180		2.2	%
International Package		2,867			2,444			423		17.3	%
Supply Chain & Freight		2,216			2,055			161		7.8	%

Total revenue		13,392			12,628			764		6.1	%

Operating expenses:
Compensation and benefits		12,824			6,504			6,320		97.2	%
Other		4,821			4,315			506		11.7	%

Total operating expenses		17,645			10,819			6,826		63.1	%

Operating profit (loss):
U.S. Domestic Package		(4,892	)		1,296			(6,188	)	N/A
International Package		557			514			43		8.4	%
Supply Chain & Freight		82			(1	)		83		N/A

Total operating profit (loss)		(4,253	)		1,809			(6,062	)	N/A

Other income (expense):
Investment income		43			15			28		186.7	%
Interest expense		(83	)		(55	)		(28	)	50.9	%

Total other income (expense)		(40	)		(40	)		—		0.0	%


Income (loss) before income taxes		(4,293	)		1,769			(6,062	)	N/A

Income tax expense (benefit)		(1,652	)		641			(2,293	)	N/A

Net income (loss)	$	(2,641	)	$	1,128		$	(3,769	)	N/A


Net income (loss) as a percentage of revenue		-19.7	%		8.9	%

Per share amounts
Basic earnings (loss) per share	$	(2.52	)	$	1.05		$	(3.57	)	N/A
Diluted earnings (loss) per share	$	(2.52	)	$	1.04		$	(3.56	)	N/A
Weighted-average shares outstanding
Basic		1,047			1,076			(29	)	-2.7	%
Diluted		1,047			1,081			(34	)	-3.1	%

As adjusted income data:
Operating profit (loss):
U.S. Domestic Package (1)	$	1,208		$	1,296		$	(88	)	-6.8	%
International Package		557			514			43		8.4	%
Supply Chain & Freight		82			(1	)		83		N/A

Total operating profit		1,847			1,809			38		2.1	%

Income before income taxes (1)	$	1,807		$	1,769		$	38		2.1	%
Net income (2)	$	1,131		$	1,128		$	3		0.3	%
Basic earnings per share (2)	$	1.08		$	1.05		$	0.03		2.9	%
Diluted earnings per share (2)	$	1.07		$	1.04		$	0.03		2.9	%

(1)

Fourth quarter 2007 adjusted operating profit and income before income taxes exclude a $6.100 billion charge in the U.S. Domestic Package segment related to the withdrawal from the Central States, Southeast and Southwest Areas Pension Fund upon ratification of our national master agreement with the International Brotherhood of Teamsters.

(2)	Fourth quarter 2007 net income and earnings per share amounts exclude the after-tax impact of the pension withdrawal charge described in (1), which totaled $3.772 billion. Adjusted diluted earnings per share is based on weighted-average shares outstanding of 1.054 billion.

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

United Parcel Service, Inc.

Selected Operating Data - Fourth Quarter

(unaudited)


	Three Months Ended December 31,				Change
	2007		2006		$ / #			%
Revenue (in millions):
U.S. Domestic Package:
Next Day Air	$	1,735	$	1,724	$	11		0.6	%
Deferred		983		977		6		0.6	%
Ground		5,591		5,428		163		3.0	%

Total U.S. Domestic Package		8,309		8,129		180		2.2	%
International Package:
Domestic		614		529		85		16.1	%
Export		2,076		1,757		319		18.2	%
Cargo		177		158		19		12.0	%

Total International Package		2,867		2,444		423		17.3	%
Supply Chain & Freight:
Forwarding and Logistics		1,574		1,479		95		6.4	%
Freight		525		468		57		12.2	%
Other		117		108		9		8.3	%

Total Supply Chain & Freight		2,216		2,055		161		7.8	%

Consolidated	$	13,392	$	12,628	$	764		6.1	%


Consolidated volume (in millions)		1,079		1,074		5		0.5	%
Operating weekdays		61		62

Average Daily Package Volume (in thousands):
U.S. Domestic Package:
Next Day Air		1,367		1,337		30		2.2	%
Deferred		1,194		1,201		(7	)	-0.6	%
Ground		13,018		12,821		197		1.5	%

Total U.S. Domestic Package		15,579		15,359		220		1.4	%
International Package:
Domestic		1,241		1,196		45		3.8	%
Export		862		768		94		12.2	%

Total International Package		2,103		1,964		139		7.1	%


Consolidated		17,682		17,323		359		2.1	%


Average Revenue Per Piece:
U.S. Domestic Package:
Next Day Air	$	20.81	$	20.80	$	0.01		0.0	%
Deferred		13.50		13.12		0.38		2.9	%
Ground		7.04		6.83		0.21		3.1	%
Total U.S. Domestic Package		8.74		8.54		0.20		2.3	%
International Package:
Domestic		8.11		7.13		0.98		13.7	%
Export		39.48		36.90		2.58		7.0	%
Total International Package		20.97		18.77		2.20		11.7	%
Consolidated	$	10.20	$	9.70	$	0.50		5.2	%

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)


	Year Ended
	December 31,						Change
	2007			2006			$			%
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
U.S. Domestic Package	$	30,985		$	30,456		$	529		1.7	%
International Package		10,281			9,089			1,192		13.1	%
Supply Chain & Freight		8,426			8,002			424		5.3	%

Total revenue		49,692			47,547			2,145		4.5	%

Operating expenses:
Compensation and benefits		31,745			24,421			7,324		30.0	%
Other		17,369			16,491			878		5.3	%

Total operating expenses		49,114			40,912			8,202		20.0	%

Operating profit (loss):
U.S. Domestic Package		(1,531	)		4,923			(6,454	)	N/A
International Package		1,831			1,710			121		7.1	%
Supply Chain & Freight		278			2			276		N/A

Total operating profit		578			6,635			(6,057	)	-91.3	%

Other income (expense):
Investment income		99			86			13		15.1	%
Interest expense		(246	)		(211	)		(35	)	16.6	%

Total other income (expense)		(147	)		(125	)		(22	)	17.6	%


Income before income taxes		431			6,510			(6,079	)	-93.4	%
Income tax expense		49			2,308			(2,259	)	N/A


Net income	$	382		$	4,202		$	(3,820	)	-90.9	%

Net income as a percentage of revenue		0.8	%		8.8	%

Per share amounts
Basic earnings per share	$	0.36		$	3.87		$	(3.51	)	-90.7	%
Diluted earnings per share	$	0.36		$	3.86		$	(3.50	)	-90.7	%

Weighted average shares outstanding
Basic		1,057			1,085			(28	)	-2.6	%
Diluted		1,063			1,089			(26	)	-2.4	%
As adjusted income data:
Operating profit:
U.S. domestic package (1)	$	4,781		$	4,923		$	(142	)	-2.9	%
International package (1)		1,900			1,710			190		11.1	%
Supply chain and freight (1)		332			2			330		N/A

Total operating profit		7,013			6,635			378		5.7	%
Income before income taxes (1)	$	6,866		$	6,510		$	356		5.5	%
Net income (2)	$	4,369		$	4,202		$	167		4.0	%
Basic earnings per share (2)	$	4.13		$	3.87		$	0.26		6.7	%
Diluted earnings per share (2)	$	4.11		$	3.86		$	0.25		6.5	%

(1)	2007 adjusted operating profit and income before income taxes exclude the following:

—

an impairment charge on Boeing 727 and 747 aircraft, and related engines and parts, of $221 million ($159 million U.S. Domestic Package and $62 million International Package), due to the acceleration of the planned retirement of these aircraft.

—

a charge related to the special voluntary separation opportunity (“SVSO”), which was accepted by 195, or 30%, of the eligible employees. We recorded a charge to expense of $68 million ($53 million U.S. Domestic Package, $7 million International Package, and $8 million Supply Chain & Freight), to reflect the cash payout and the acceleration of stock compensation and certain retiree healthcare benefits under the SVSO program.

—

a $46 million charge related to the restructuring and disposal of certain operations in France within the Supply Chain & Freight segment.

—

$6.100 billion charge in the U.S. Domestic Package segment related to the withdrawal from the Central States, Southeast and Southwest Areas Pension Fund upon ratification of our national master agreement with the International Brotherhood of Teamsters.

(2)	2007 net income and earnings per share amounts exclude the after-tax impact of the charges described in (1), which totaled $3.987 billion.

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

United Parcel Service, Inc.

Selected Operating Data - Year to Date

(unaudited)


	Year Ended December 31,				Change
	2007		2006		$ / #			%
Revenue (in millions):
U.S. Domestic Package:
Next Day Air	$	6,738	$	6,778	$	(40	)	-0.6	%
Deferred		3,359		3,424		(65	)	-1.9	%
Ground		20,888		20,254		634		3.1	%

Total U.S. Domestic Package		30,985		30,456		529		1.7	%
International Package:
Domestic		2,177		1,950		227		11.6	%
Export		7,488		6,554		934		14.3	%
Cargo		616		585		31		5.3	%

Total International Package		10,281		9,089		1,192		13.1	%
Supply Chain & Freight:
Forwarding and Logistics		5,911		5,681		230		4.0	%
Freight		2,108		1,952		156		8.0	%
Other		407		369		38		10.3	%

Total Supply Chain & Freight		8,426		8,002		424		5.3	%

Consolidated	$	49,692	$	47,547	$	2,145		4.5	%

Consolidated volume (in millions)		3,969		3,945		24		0.6	%
Operating weekdays		252		253

Average Daily Package Volume (in thousands):
U.S. Domestic Package:
Next Day Air		1,277		1,267		10		0.8	%
Deferred		974		993		(19	)	-1.9	%
Ground		11,606		11,537		69		0.6	%

Total U.S. Domestic Package		13,857		13,797		60		0.4	%
International Package:
Domestic		1,132		1,108		24		2.2	%
Export		761		689		72		10.4	%

Total International Package		1,893		1,797		96		5.3	%

Consolidated		15,750		15,594		156		1.0	%


Average Revenue Per Piece:
U.S. Domestic Package:
Next Day Air	$	20.94	$	21.14	$	(0.20	)	-0.9	%
Deferred		13.69		13.63		0.06		0.4	%
Ground		7.14		6.94		0.20		2.9	%
Total U.S. Domestic Package		8.87		8.73		0.14		1.6	%
International Package:
Domestic		7.63		6.96		0.67		9.6	%
Export		39.05		37.60		1.45		3.9	%
Total International Package		20.26		18.70		1.56		8.3	%
Consolidated	$	10.24	$	9.88	$	0.36		3.6	%

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