ATLANTA--(BUSINESS WIRE)--July 31, 2006--UPS (NYSE:UPS) today released its fourth annual Corporate Sustainability Report tracking the company's progress on balancing a variety of economic, social and environmental objectives.

The report, based on 2005 data, shows UPS has continued to pursue its business sustainability goals by posting improvements in several important areas such as improved environmental practices throughout its operations, reduced on-the-job injury rates and increases in global employee volunteerism and charitable giving.

The full text of UPS's Corporate Sustainability Report is available at www.sustainability.ups.com.

"UPS has thrived for nearly 100 years, in part because we strive to operate a business based upon measurable and manageable sustainable practices," said Mike Eskew, UPS's chairman and CEO. "We continue to review processes and introduce new initiatives that will help us move toward our centennial goals in 2007."

UPS was the first company in its industry to issue a sustainability report and to publicize its goals for business practices that enhance communities and protect the environment. In doing so, UPS also had to develop several industry-specific metrics that appropriately measure business impacts.

The first Corporate Sustainability Report -- "Operating in Unison" -- was issued in 2003 using year-end 2002 data. The vision, strategy and goals outlined in that initial document were set for 2007, UPS's 100th anniversary. UPS is providing online annual updates through 2007, then will print a special centennial sustainability report in 2008.

The 2005 Corporate Sustainability Report compiles economic, social and environmental data. This year's highlights include:

Economic Sustainability

-- Named the most socially responsible company in FORTUNE magazine's "America's Most Admired" survey. UPS also ranked first in its industry in this survey for the 22nd time, and ranked first in the industry for the magazine's "Global Most Admired" survey.

-- Included in the Dow Jones Sustainability Index for the fourth consecutive year and the FTSE4Good Index for the second consecutive time.

-- Listed on the inaugural list of 2005 Global 100 Most Sustainable Corporations in the World.

Social Responsibility

-- Encouraged participation in the third annual UPS Global Volunteer Week, during which more than 20,000 employees volunteered 100,000 hours in more than 45 countries.

-- Contributed US$44.8 million to charities and relief efforts around the world in 2005. This included US$3 million in aid to those areas devastated by the tsunamis across southeast Asia, US$2 million to support relief and recovery efforts for the victims of the devastating earthquake that struck south Asia in October 2005 and US$1.25 million toward relief efforts for those affected by Hurricane Katrina.

-- Contributed US$57.4 million to United Way. This is the fifth time UPS and its employees have been the top contributor.

Environmental Stewardship

-- Continued to enhance its fleet with a "rolling laboratory" philosophy, using the alternative-fuel fleet as a way to learn how new technologies and advancements that can be adapted for use in a large delivery operation.

-- Introduced an additional electric vehicle in the Manhattan, N.Y. fleet.

-- Announced a partnership with the U.S. Environmental Protection Agency and others to build and test the world's first fully hydraulic hybrid urban delivery vehicle.

-- Deployed a compressed natural gas vehicle in Paris, France.

-- Installed "sleep" software to conserve energy on 11,000 computers in Atlanta, Ga.; Louisville, Ky.; Towson, Md., and Mahwah, N.J.

-- Added "green" power as part of the energy supply at 14 facilities in California.

-- Recycled 4.2 million pounds of electronic equipment from UPS operations. To date, UPS has recycled 16.9 million pounds of electronic waste.

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 view the full text of UPS's Corporate Sustainability Report, please visit www.sustainability.ups.com.

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.

Copyright Business Wire 2006

UPS

UPS

UPS is a global leader in logistics, offering a broad range of solutions including transporting packages and freight; facilitating international trade, and deploying advanced technology to more efficiently manage the world of business. Headquartered in Atlanta, UPS serves 10.6 million customers daily in more than 220 countries and territories worldwide.

For more information, please visit UPS.com or the company’s Sustainability website, ups.com/sustainability. View and subscribe to UPS Horizons, our sustainability newsletter, by visiting ups.com/sustainabilitynewsletter.

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