Company Posts Strong Rebound in 4th Quarter;
               International Operations Make Significant Gains

    ATLANTA, March 2 /PRNewswire/ -- UPS today reported 1997 fiscal results
that reflect both significant improvements within its international operations
and the negative effect of last summer's Teamsters strike in the United
States.
    For the fiscal year ending Dec. 31, 1997, UPS reported total revenues of
$22.46 billion and net income of $909 million.  By contrast, 1996 revenues
totaled $22.37 billion and net income totaled $1.15 billion.
    International operations played a significant role in 1997's results,
closing the year with a loss totaling just $6 million compared to a loss of
$201 million in 1996.
    Overall, the company posted fourth quarter revenues of $6.14 billion and
net income of $351 million, exceeding fourth quarter 1996 revenues of
$5.94 billion and net income of $247 million.
    The solid financial performance during the fourth quarter comes at a time
when UPS was selected for the 15th year in a row as the leader in its industry
in the annual Fortune Magazine poll of the nation's most admired companies.
UPS received an overall score far ahead of any competitor and once again led
not only the package and freight distribution sector but also the entire
transportation industry.
   "We have made a lot of progress in recent months to put UPS back on solid
ground and we are particularly gratified by the performance of our
international operations," commented Jim Kelly, UPS Chairman and CEO.  "I
believe the entire company now is in a better position to compete in the
future than it was a year ago."
    Package delivery volume for 1997 totaled 3.04 billion pieces, or an
average of 12 million a day.  Within that total, average daily U.S. domestic
ground volume declined 4.9% compared to 1996, while average daily U.S. air
express volume increased 4.6%.  Average daily international export volume grew
11.9% compared to 1996.  During the fourth quarter, average daily U.S.
domestic ground volume declined 3.6%, while average daily U.S. air express
volume grew 6.3% and average daily international export volume increased
16.4%.
    In addition to its international gains, UPS saw significant improvement
within its logistics subsidiary.  The UPS Logistics Group, which is comprised
of several different units including UPS Worldwide Logistics, UPS Truck
Leasing and Sonic Air, reported a 23% gain in revenue in 1997 compared to
1996.
    UPS is the largest package delivery company in the world, serving more
than 200 countries and territories and delivering an average 12 million
packages a day.  Headquartered in Atlanta, Ga., the company employs 331,000
people around the globe.

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