FedEx Acquires UK Express Company ANC

FedEx Corporation (NYSE: FDX) today announced it has acquired ANC
Holdings Limited, a United Kingdom domestic express transportation
company for GBP 120 million. This transaction will allow FedEx
Express, an operating unit of FedEx Corp., to directly serve the
entire UK domestic market, providing a broader range of shipping
options and enhanced service under the trusted FedEx brand.

ANC offers a comprehensive range of distribution and logistics
services with an established pick-up and delivery network across the
UK. Founded in 1981, ANC has annual revenues of more than GBP 145
million and is known for its strong customer-service philosophy, its
advanced, reliable delivery network and commitment to its employees.
ANC currently operates with a network of approximately 4,500 people
and a fleet of 2,200 vehicles from 80 locations.

"The addition of ANC significantly expands our service portfolio
in the important UK market and underscores our continuing commitment
to grow the FedEx international business," said Michael L. Ducker,
president, International, FedEx Express. "This strategic investment
enhances FedEx in the global express industry and will deliver
additional value to our customers, employees and shareowners."

UK businesses increasingly demand bundled transportation offerings
in order to take advantage of global economic trends, such as the
increasing percentage of high-tech, high-value manufactured goods, the
growth of global trade, faster supply chains and logistics and the
growth of the internet and e-commerce.

"As the UK market continues to evolve and expand, customers
increasingly seek a single provider of solutions for their domestic
and international shipping to more efficiently manage their global
supply chains," said Robert W. Elliott, president, Europe, Middle
East, Africa and Indian subcontinent, FedEx Express. "This acquisition
gives our customers access to broader business and transportation
services and supports the delivery of an outstanding customer
experience each and every day."

ANC management will remain in place and report directly to
Elliott. As part of the transaction, ANC shareholder LDC - the private
equity division of Lloyds TSB Group plc - will exit its investment.

"The acquisition of ANC by FedEx, a world-class company known for
its premium service and dedication to its people, presents new
opportunities for our customers and employees," said Mark Gittins,
chief executive officer of ANC. "Our two companies share similar
values in providing an excellent customer experience, investing in our
people and our commitment to being good corporate citizens."

JPMorgan Cazenove acted as financial adviser to FedEx Corporation
on the transaction. KPMG advised ANC Holdings Limited.

About FedEx Express

FedEx Express is the world's largest express transportation
company, providing fast and reliable delivery to more than 220
countries and territories. FedEx Express uses a global air-and-ground
network to speed delivery of time-sensitive shipments, by a definite
time and date with a money-back guarantee.

About FedEx

FedEx Corp. (NYSE: FDX) provides customers and businesses
worldwide with a broad portfolio of transportation, e-commerce and
business services. With annual revenues of $33 billion, the company
offers integrated business applications through operating companies
competing collectively and managed collaboratively, under the
respected FedEx brand. Consistently ranked among the world's most
admired and trusted employers, FedEx inspires its more than 275,000
employees and contractors to remain "absolutely, positively" focused
on safety, the highest ethical and professional standards and the
needs of their customers and communities. For more information, visit
www.fedex.com.