UPS Opens Ontario Logistics Center

Key Link in Global Network is 2nd Largest in North America

MISSISSAUGA, Ontario, Sept. 6, 2006 - UPS (NYSE: UPS) today announced the opening of an 800,000-square-foot logistics campus in Burlington, Ontario, for UPS Supply Chain Solutions.

The second largest UPS logistics facility in North America, the Burlington complex was built at a cost of $80 million (CAN) and takes its place in a growing strategic logistics network that includes campuses in Louisville, Ky.; Mira Loma, Calif.; Roermond, Netherlands, and Singapore.

The new multi-client campus expands UPS’s supply chain capabilities in Canada and links with UPS Canada’s transportation network of package and freight services. It will provide order fulfillment operations; critical parts deployment, and freight receiving and shipment preparation for multiple clients using sophisticated warehouse management, shipping and international technology platforms. UPS logistics campuses have been designed to leverage expertise and services to help customers better manage their supply chains, which typically results in cost reductions of 10 to 20 percent.

"In today’s highly competitive environment, manufacturers are reducing costs by maximizing efficiencies in sourcing, transportation and order fulfillment" said Brad Mitchell, president of UPS Supply Chain Solutions in Canada. "For manufacturers, the supply chain represents the second most important area of business where costs can be controlled"

Two buildings currently comprise the campus, which also is the Canadian headquarters of UPS Supply Chain Solutions. A 600,000-square-foot distribution center geared to the logistics needs of consumer goods and high-tech businesses spans the equivalent of six Canadian football fields. The second building is a specialized 207,000-square-foot healthcare center focused on the needs of pharmaceutical and medical device industries. This state-of-the-art facility meets quality assurance requirements that adhere to Health Products and Food Branch Inspectorate regulations.

The new campus features a number of advanced IT systems, including an order management system and warehouse management system. With 150 loading docks, it is equipped with super-flat finished floors that enable orders to be picked with precision and speed at heights up to 30 feet using radio frequency wireless hand-held devices.

Located in Burlington with close proximity to key airports and highways, the facility serves as a gateway for Canadian businesses to reach any U.S. or global market.

UPS has 1,000 supply chain facilities in more than 120 countries, totaling more than 35 million square feet of warehouse space. The company provides an unmatched portfolio of services to Canadian business offering expertise in international trade management, customs brokerage and multi-modal transportation.

UPS is the world’s largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the movement of goods, information and funds. Employing more than 7,435 people in Canada and 407,200 worldwide, UPS delivers to every address in Canada and the United States, and operates in more than 200 countries and territories worldwide. UPS’s stock trades on the New York Stock Exchange (UPS) and the company can be found on the Web at UPS.com.

Contact Information

Pat Steffen

UPS

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