UPS Reaffirms Guidance for 2005 Second Quarter

UPS reaffirmed its financial guidance for the second quarter of 2005, saying it expected dilutedearnings per share in a range of $0.82 to $0.87 compared to the $0.72 reported during the

prior-year period. The company also reiterated that volumes were growing as expected during thequarter with U.S. domestic volume growth ahead of original projections and international exportgrowth maintaining its strength with double-digit growth. “As the second quarter comes to a close,UPS continues to see momentum across each of its business segments,” said Mike Eskew, UPS’schairman and CEO. “We also continue to expect earnings for the year to increase 16% to 20% ascompared to the adjusted $2.90 reported for 2004.” The 2004 diluted EPS on a GAAP basis was $2.93.