Anyone with information that may be helpful to the company's efforts to reach out to the Amish or who would like more information about this important recall is urged to call 717-939-0466, 1-800-692-6016, or email kerosenerecall@ppcterminals.com.

Since the company first learned of the possible contamination on Wednesday, Pittsburgh Terminals Corp. has contacted all 37 of its kerosene distributors, conducted extensive sampling of its products, notified other suppliers in the affected area, set up 16 collection centers, held two press conferences and prepared warning notices for widespread public distribution.

The company stresses that anyone who purchased kerosene from a retailer in western Pennsylvania, eastern Ohio, northern West Virginia or southwestern New York between May 1, 2008, and August 19, 2008, should not use the kerosene. Instead, the company is urging customers to immediately return the potentially contaminated kerosene to one of the Kerosene Recall Collection Centers listed below. Customers will be fully reimbursed for the kerosene and the returned container upon completion of a simple form.

The process for collection is very simple:

1. Take your container of potentially contaminated kerosene to a collection center during open business hours and leave it with an attendant.

2. Fill out a simple form which will enable Pittsburgh Terminals Corp. to reimburse you for the kerosene and your container.

3. If you need directions, visit the company's website at www.ppcterminals.com for MapQuest directional links to each collection point.

    PA Collection Centers:

    Reed Oil Company           Days of Collection:   M-F: 7:30 A.M.-5:00 P.M.
    511 Montgomery Avenue                              S: 8:00 A.M.-11:00 A.M.
    New Castle, PA 16102
    724-658-6692

    Harned Oil Company         Days of Collection:   M-F: 7:30 A.M.-5:00 P.M.
    10470 Pymatuning Ave.
    Connneaut Lake, PA 16316
    814-382-2642

    Bradigan's Inc.            Days of Collection:   M-F: 7:30 A.M.-5:00 P.M.
    114 S. Water Street Ext,                           S: 8:00 A.M.-12:00 P.M.
    Kittanning, PA 16201
    724-548-7654

    Veado's                    Days of Collection:   M-F: 7:00 A.M.-5:00 P.M.
    181 Hadley Road                                    S: 8:00 A.M.-12:00 P.M.
    Greenville, PA 16125
    724-588-1661

    Export Fuel Company Inc.   Days of Collection:   M-F: 7:00 A.M.-5:00 P.M.
    231 York Lane                                      S: 8:00 A.M.-1:00 P.M.
    Export, PA 15632
    724-468-4185

    PPC Lubricants Inc.        Days of Collection:   M-F: 7:00 A.M.-4:30 P.M.
    150 Bonnie Drive
    Butler, PA 16001
    888-721-5823

    PPC Lubricants Inc.        Days of Collection:   M-F: 7:00 A.M.-3:30 P.M.
    725 S. Main Street (BLDG#5)
    Greensburg, PA 15601
    888-721-5823

    Gnagey Gas & Oil Inc.      Days of Collection:   M-F: 8:00 A.M.-4:30 P.M.
    8 Gardner Street
    Uniontown, PA 15401
    724-437-7241

    Jacobs Petroleum Products  Days of Collection:   M-F: 8:00 A.M.-12:00 P.M.
    424 S. Washington Street
    Waynesburg, PA 15370
    724-627-3757

    Heath Oil Co               Days of Collection:   M-F: 8:00 A.M.-4:00 P.M.
    5609 State Route # 8
    Harrisville, PA 16038
    814-437-7802

    Glassmere Fuel Service     Days of Collection:   M-F: 8:00 A.M.-4:00 P.M.
    Dispatch Trailer
    1967 Saxonburg Blvd.
    Tarentum, PA15084
    724-265-4646

    Shortway Service           Days of Collection:   M-F: 8:00 A.M.-4:00 P.M.
    311 Jackson Street
    Reynoldsville, PA 15851
    814-653-9633

    Klasen Oil                 Days of Collection:   M-F: 7:00 A.M.-5:00 P.M.
    2988 Old Highway 322
    Cochranton, PA 16314
    814-425-7498

    Pittsburgh Terminals Corp  Days of Collection:   M-S: 8:00 A.M.-5:00 P.M.
    9 Thorn Street
    Coraopolis, PA 15108
    412-264-8240

    WV Collection Centers:

    Valley Fuels Inc           Days of Collection:   M-F: 8:00 A.M.-4:00 P.M.
    Bull Run Road
    Masontown, WV 26542


    Contact:
    Karen Walsh
    (717) 982-8194
    kwalsh@neimangroup.com

SOURCE Pittsburgh Terminals Corporation

http://www.ppcterminals.com

"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.

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(R) 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 Paperlesssm Invoice and international UPS Returns(R), 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.

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."

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    %
(1) Third quarter 2007 adjusted operating profit and income before
income taxes exclude a $46 million charge related to the
restructuring and disposal of certain operations in France within
the Supply Chain & Freight segment.
(2) Third quarter 2007 net income and earnings per share amounts
exclude the after-tax impact of the Supply Chain & Freight
restructuring charge described in (1), which totaled $31 million.
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  %
(1)2007 adjusted operating profit and income before income taxes
exclude 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.
2007 adjusted operating profit and income before income taxes also
exclude 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.
2007 adjusted operating profit and income before income taxes
exclude a $46 million charge related to the restructuring and
disposal of certain operations in France within the Supply Chain &
Freight segment.
(2)2007 net income and earnings per share amounts exclude the
after-tax impact of the charges described in (1), which total $215
million.
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)
                                              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   %
Certain prior year amounts have been reclassified to conform to
the current year presentation.

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.

SOURCE: UPS

UPS 
Norman Black, 404-828-7593 
or 
Andy Dolny, 404-828-8901

"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 organisation. UPS is also 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.

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 favourable 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 Paperlesssm 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 favourable 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.

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."

UPS is the world's largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronising the movement of goods, information and funds. Headquartered in Atlanta, USA, 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 www.ups.com. To get UPS news direct, visit www.pressroom.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 herein by reference.

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