Certain statements in this press release may be considered forward-lookingstatements, such as statements relating to management’s views with respect tofuture events and financial performance. Such forward-looking statements aresubject to risks, uncertainties and other factors which could cause actualresults to differ materially from historical experience or from future resultsexpressed or implied by such forward-looking statements. Potential risks anduncertainties include, but are not limited to, economic conditions in the globalmarkets in which we operate, legal challenges or changes related to FedExGround`s owner-operators, new U.S. domestic or international governmentregulation, the impact from any terrorist activities or international conflicts,our ability to effectively operate, integrate and leverage acquired businesses,changes in fuel prices and currency exchange rates, our ability to matchcapacity to shifting volume levels and other factors which can be found in FedExCorp.’s and its subsidiaries’ press releases and filings with the SEC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURESThe company believes that meaningful analysis of our financial performancerequires an understanding of the factors underlying that performance and ourjudgments about the likelihood that particular factors will repeat. Excludingthe impact of the fourth quarter impairment and other charges from fiscal 2009fourth quarter and full year results and Kinko`s-related charges from fiscal2008 fourth quarter and full year results will allow more accurate comparisonsof our operating performance during these quarters and years.

The tables belowpresent a reconciliation of our presented non-GAAP measures to the most directlycomparable GAAP measures Full Year EPSFourth Qtr. EPS 2009 2008 20092008Non-GAAP Measure $ 3.76 $ 5.83 $ 0.64$ 1.452008 Kinko`s Charges1-(2.23) – (2.22 ) 2009 Fourth Quarter Charges1, 3(3.45) -(3.46 ) – GAAP Measure $ 0.31 $ 3.60 ($2.82) ($0.78) 2 1 -Impact differs for fourth quarter and full year due to weighted-average number of shares outstanding. 2 -The GAAP earnings per share measure does not equal the sum of the items presented due to differences in the weighted-average number of shares outstanding.3 -$1.2 billion, or $1.1 billion net of tax, including noncash impairment charges associated with goodwill and aircraft-related asset impairments and other charges primarily associated with aircraft-related lease and contract termination costs, and employee severance.FEDEX CORP. Domestic Package2,6172,663 (2 %) 2,603 2,723 (4 %) International Priority 456520 (12%) 475 517 (8 %) International Domestic 289298 (3 %) 298 296 NMTotal Average Daily Packages 3,3623,481 (3 %) 3,376 3,536 (5 %)Average Daily Freight Pounds (000s): U.S. 6,8597,873 (13%) 7,287 8,648 (16%) International Priority 1,7152,347 (27%) 1,959 2,220 (12%) International Airfreight 1,1781,950 (40%) 1,475 1,817 (19%) Total Avg Daily Freight Pounds 9,75212,170(20%) 10,72112,685(15%)YIELDRevenue Per Package:U.S. Overnight Box $ 18.22$ 23.22 (22%) $ 21.21 $ 22.40 (5 %) U.S Overnight Envelope10.1512.20 (17%) 11.65 11.66 (0 %) U.S Deferred11.3913.86 (18%) 12.94 13.12 (1 %) Total U.S. Domestic Package14.0717.45 (19%) 16.21 16.68 (3 %) International Priority 51.2961.51 (17%) 57.81 58.11 (1 %) International Domestic 6.52 8.92(27%) 7.508.80(15%) Composite Package Yield$ 18.47$ 23.30 (21%) $ 21.30 $ 22.08 (4 %)Revenue Per Freight Pound:U.S.

Company Aligns HP Halo Unit Within HP ProCurve Networking Business PALO ALTO, Calif.–(Business Wire)–HP (NYSE:HPQ) today announced a service enabling HP Halo customers to use theirtelepresence endpoints to reach thousands of people, including employees,partners and suppliers, at one time. HP Halo Webcasting expands the HP Unified Communications and Collaborationportfolio, giving customers greater choice in implementing solutions that meettheir global communication needs. HP also announced the realignment of the HP Halo business within the HP ProCurveNetworking business, which is part of the company`s enterprise-focusedTechnology Solutions Group responsible for servers, storage, software,networking and services. This move provides customers with “one-stop shopping”in choosing the right video endpoints, services and network solutions that willpropel collaboration within their organizations.

“Customers looking for integrated unified communications and collaborationsolutions that include endpoint technologies, network management andcomprehensive services can turn to HP,” said Ken Crangle, vice president andgeneral manager, Halo business unit, HP. “Together, these developments andofferings are aimed at helping customers reduce operating costs, lower demandson IT staff, extend their reach and facilitate better business outcomes.” Reduce costs, travel less and broaden reach with HP Halo WebcastingHP Halo Webcasting allows customers to produce high-quality webcast content -live and on demand – directly from their Halo telepresence endpoints and thenstream the content to employees or external audiences around the world. This end-to-end managed solution enables webcast attendees using notebooks orPCs at home, the office or on the road to easily see and engage withspokespeople webcasting from Halo locations. As many as three presenters from three different sites or companies can beincluded in each webcast; this allows for the addition of content expertswithout being bound by a single location. Presenters simply go to their HP Halostudio and use existing HP Halo cameras to record a broadcast-quality videopresentation or to participate in a live video event – eliminating the costsassociated with traveling to a TV studio or sending a video production crew tothe presenter.

All Halo endpoints – including the HP Halo Collaboration Studio, HP Halo MeetingRoom and HP Halo Collaboration Center – can be used to conduct these webcasts. HP Halo Webcasting includes everything from webcast planning and scripting tovideo production, editing and distribution. Customers also have access to acustomizable media portal that features content such as live question-and-answersessions via instant messaging or phone as well as surveys and presentationslides. Increased flexibility, global unified communications integration capabilitiesBy realigning the HP Halo business directly with the HP ProCurve Networkingbusiness, the company can now integrate all components of video collaboration,including networking options and services, while providing customers withsingle-source accountability. From HP`s range of networking options, customers can select the type of networkinfrastructure that best suits their needs. A company may, for example, placedesktop video solutions on its corporate network while placing higher bandwidthtelepresence and videoconferencing endpoints on HP`s fully managed HP Halo VideoExchange Network (HVEN).