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UPS Now Delivering Packages with Industry's 1st Hybrid Electric Vehicle

Submitted by: UPS

Categories: Environment

Posted: Nov 05, 2001 – 11:00 PM EST


Culminates Three Years of Research and Design;
Chairman-elect Outlines Company's Environmental Vision

Nov. 05 /CSRwire/ - UPS (NYSE: UPS) today unveiled plans to complete testing of the industry's first hybrid electric delivery vehicle.

In a keynote speech here to the Clean Air Technologies 2001 International Conference on Urban Air Pollution, UPS Chairman-elect Mike Eskew announced the vehicle is currently being used to pick up and deliver packages at 158 locations on a 31-mile route in Huntsville, Ala. Eskew also said that on-road testing of the vehicle will be completed in February.

"Our goal with this project is to significantly reduce exhaust emissions and increase fuel economy, improve mechanical and operational reliability and provide clean, efficient auxiliary power," Eskew said. "Our overall objective is to lessen our imprint on the environment."

Eskew addressed the environmental challenges of operating the largest private transportation network and the central philosophy that guides UPS, which he referred to as "enlightened commitment."

"We think of enlightened commitment as doing good for the environment by doing good for our business," Eskew said. "We can only accomplish this by never being satisfied with the status quo and by searching for ways to integrate our environmental concerns and objectives into the core of our operations."

Development of a hybrid electric delivery vehicle is the latest in a long line of initiatives that combine environmental stewardship with technological and market innovations. UPS began the research and design phase of its HEV project three years ago. The company teamed up with PEI Electronics, a premier developer of hybrid electric technology for the military, in late 2000 to develop a prototype vehicle to operate in UPS's fleet. UPS is the only package delivery company to have an HEV package car in operation.

UPS, the world's largest express carrier and package delivery company, operates the largest private fleet of compressed natural gas (CNG) vehicles in the United States and has a total alternative fuel fleet of more than 1,800 vehicles. Also included in the company's alternative fuel fleet are all-electric vans, liquefied natural gas tractors and propane delivery vehicles.

In 1998, the company launched the industry's first Reusable Next Day Air envelope, which is manufactured using a bleach-free process and is made of 100 percent recycled fiber, of which 80 percent is post-consumer fiber. At the same time, the company worked jointly with the Alliance for Environmental Innovation to completely revise the rest of its express packaging to significantly reduce the amount of natural resources needed in production.

Based in Atlanta, Ga., UPS operates in more than 200 countries and territories and employs 359,000 people worldwide. Visit www.pressroom.ups.com for more information about UPS's HEV project and other environmental initiatives.

PEI Electronics
Based in Huntsville, Ala., PEI (www.pei-idt.com), an Integrated
Defense Technologies company, is an electronics firm dedicated to the design and production of advanced electronics systems and products. For more than four decades, PEI has played a key role in the development of innovative electronics for space, defense and commercial applications.

As the prime contractor in this effort, PEI's role in this project has been to supply the hybrid power train hardware and software and to perform the systems integration that coordinates and calibrates the operation of the HEV's engine, batteries and drive motor to make the vehicle run properly. Other suppliers who worked closely with PEI in the development process include UQM Technologies, Inc. (AMEX: UQM), which provided the high performance motors and electronic motor controllers for the vehicle. UQM Technologies (www.uqm.com) is a leading developer and manufacturer of power dense, high efficiency motors, generators and power electronic inverters.

Editor's Note:
The Clean Air Technologies 2001 conference is sponsored by the South Coast Air Quality Management District (www.aqmd.gov). To read Mike Eskew's full speech to the conference, visit the UPS Pressroom at www.pressroom.ups.com.

Full graphic representations of HEV technology are available on the UPS Pressroom as well.

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 involve certain risks and uncertainties, including statements regarding the intent, belief or current expectations of UPS and its management regarding the company's strategic directions, prospects and future results. 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.

Learn more about UPS's environmental initiatives.

For more information, please contact:

Paula Fulford United Parcel Service of America
Phone: (404) 828-4242

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