UPDATE: UPS to Expand Natural Gas Footprint

UPS(R) (NYSE: UPS) announced today plans to invest approximately $50 millionto build an additional nine liquefied natural gas (LNG) fueling stations,bringing the total number of stations to 13. Four were announced in April,and all should be operational by the end of 2014. The enhanced LNG fueling infrastructure will support the operation ofapproximately 1,000 UPS LNG tractors that will displace more than 24 milliongallons of diesel fuel annually. UPS has used LNG vehicles for more than adecade and has benefited from lower fuel prices compared to importedpetroleum. "The natural gas industry needs companies to commit to using natural gas tohelp establish a reliable alternative to traditional fuel, and that is justwhat UPS is doing," said David Abney, UPS chief operating officer. "The UPSstrategy is both environmentally friendly and economically viable. LNG isbecoming more readily available, plus it's more insulated from marketvolatilities than diesel fuel." The expansion will include on-site fueling stations in Florida, Illinois,Indiana, Mississippi, Missouri, Ohio, Pennsylvania and Texas. Constructionis already underway at previously-announced UPS facilities in Tennessee andTexas. Currently, UPS operates LNG tractors in Las Vegas, Nev., Phoenix,Ariz., Beaver and Salt Lake City, Utah, and, Ontario, Calif. UPS began usingLNG tractors in its delivery fleet in 2002. "Building these fueling stations is a solid future investment for UPS," saidAbney. "Since vehicles represent approximately 35 percent of UPS's carbonfootprint, a cornerstone of the company's environmental strategy is tosupport the development and use of lower-emission alternative fuels. By2017, our goal is to reach one billion miles driven by our alternative fueland advanced technology fleet. To accomplish this goal the company mustcontinue to innovate and help pave the way toward more sustainabletransportation solutions." UPS operates one of the largest private alternative fuel fleets in theindustry with more than 2,700 alternative fuel and advanced technologyvehicles. This includes all-electric, hybrid electric, hydraulic hybrid,CNG, LNG, liquid propane gas (LPG), biomethane, and light-weight fuel-savingcomposite body vehicles. The company takes a "rolling laboratory" approach which means it's alwaystesting different technologies to find the best sources of energy for itsvehicles. UPS recently began a pilot program testing propane vehicles inGainesville, Ga., and over the past year has deployed 20 biomethane vehiclesin the United Kingdom. UPS also currently operates approximately 1,000compressed natural gas (CNG) vehicles and will begin a pilot program testingCNG tractors in early 2014 as it continues to look toward natural gas as asubstitute for conventional fuel. Between 2000 and the end of 2012, the UPS alternative fuel and advancedtechnology fleet logged 295 million miles. In 2012, the growing fleet drove49 million miles, a 43 percent increase compared to 2011. For more information on UPS's sustainability initiatives, review thecompany's entire 2012 Corporate Sustainability Report atwww.ups.com/sustainability. UPS (NYSE: UPS) is a global leader in logistics, offering a broad range ofsolutions for the transportation of packages and freight, includinginnovative delivery options for the global consumer market; the facilitationof international trade, and the deployment of advanced technology to moreefficiently manage the world of business. Headquartered in Atlanta, UPSserves more than 220 countries and territories worldwide. The company can befound on the Web at ups.com(R) and its corporate blog can be found atblog.ups.com. To get UPS news direct, visit pressroom.ups.com/RSS.