(EMAILWIRE.COM, February 13, 2001 ) Shareholders of American Freightways approved on Friday its merger with a subsidiary of FedEx Corp. (NYSE: FDX). As a result of the acquisition of American Freightways, FedEx has created FedEx Freight, a $1.9 billion, less-than-truckload subsidiary that includes American Freightways and its sister operating company, Viking Freight. FedEx announced on Nov. 13, 2000 that it had agreed to acquire American Freightways.

With the creation of FedEx Freight, FedEx continues to expand its portfolio of transportation solutions with an award-winning LTL service. FedEx Freight is the latest addition to the FedEx family of operating companies that operate independently but compete collectively. Leading the new LTL powerhouse will be Douglas G. Duncan, previously president and CEO of Viking.

Uniting Companies Strengthens FedEx Freight Services

"Uniting these two exceptional companies under FedEx Freight strengthens our portfolio of services, helping us build a complete suite of supply-chain solutions for all customers," Duncan said. "Both companies will continue to do what they do best- provide superior regional LTL service with intensive, real-time information that helps our customers compete more effectively in today's fast-paced economy."

Both American Freightways and Viking provide next-day and second-day regional freight delivery with the speed, precision and real-time information to support today's fast-moving supply chains. Sales forces for both companies will be trained to cross-sell each other's services.

One Stop Shopping for FedEx LTL Customers

By combining Viking, the leading LTL carrier in the western United States, with American Freightways, which offers direct, all-points freight services in 40 states, FedEx Freight will offer one-stop shopping for LTL customers who require top-quality, highly reliable service.

Through a comprehensive network of service centers and real-time information systems, American Freightways and Viking provide direct service to virtually all U.S. zip codes, including Alaska, Hawaii and Puerto Rico. Internationally, American Freightways and Viking provide service to North, Central and South America and the Caribbean. More information about American Freightways, which is based in Harrison, Ark., can be found at www.af.com, and about Viking, based in San Jose, Calif., at www.vikingfreight.com.

American Freightways was acquired in a two-step transaction by FedEx for approximately $1.2 billion, consisting of cash, FedEx common stock and assumed debt. FedEx first acquired 50.1% of American Freightways common stock in a cash tender offer. In the second step, at the close of business on Feb. 9, each remaining outstanding share of American Freightways common stock (other than shares owned by FedEx and dissenters) valued at $28.13 was converted into 0.6639 shares of FedEx Corp. common stock, and American Freightways was merged into FedEx Freight.

About FedEx

With annual revenues of $20 billion, FedEx Corp. is the premier global provider of transportation, freight, e-commerce and supply-chain management services. The company offers integrated business solutions through a network of subsidiaries operating independently, including FedEx Express, the world's largest express transportation company; FedEx Ground, North America's second largest provider of small-package ground delivery service; FedEx Freight, a leading provider of regional less-than-truckload freight services; FedEx Custom Critical, the world's largest provider of expedited, time-critical shipments; and FedEx Trade Networks, a provider of customs brokerage, consulting, information technology and trade facilitation solutions. More than 2.5 million customers are connected electronically through the FedEx information network.

Certain statements made in this press release may be considered forward-looking statements, such as statements relating to management's views with respect to future events and financial performance and the acquisition by FedEx of American Freightways. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic and competitive conditions in the markets we serve, matching capacity to volume levels and other uncertainties detailed from time to time in FedEx Corp.'s and its subsidiaries' press releases and filings with the SEC.

NOTE TO EDITORS: FedEx Corp. press releases are available on the World Wide Web at http://www.fedex.com

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Produced for FedEx Corp.

Contact:
Shirlee Clark
FedEx Media Relations
1-901-818-7463
smclark@fedex.com

J.H.Clippard, Jr.
FedEx Investor Relations
1-901-818-7468
jhclippard@fedex.com

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