Proof: B Date: 23/02/09Title: ups 2009 Forum Issue: 1 ID: Generic-English (GEN-en) Version: 11 Master: 02

Issue 2, 2009

The latest news and views from UPS®

UPS sponsors the PGA European TourIn the warm summer months,

many people turn their

thoughts towards enjoying

freshly picked fruit, sunny

afternoons and long family

vacations. For UPS, summer

is also a time to focus on

the sights and smells of wild

grass, beautiful fairways and

immaculate greens.

Recently, UPS was designated as the Official Logistics and Express Sponsor to the European Tour and is currently providing critical transportation and logistical support to the prestigious sporting tournament.

The sponsorship covers six events located in China, South Korea, the United Kingdom, Germany and Hong Kong, and reflects the globalisation of UPS as a company and the worldwide popularity of golf.

“UPS’s association with the European Tour fits uniquely with our global strategy,” said

Ron Rogowski, UPS’s director of global sponsorships. “Golf players focus on precision and execution – qualities that are also inherent to UPS.”

In addition to the European Tour, this year UPS is also a sponsor of The Open Championship, in Turnberry, Scotland. To promote its golf sponsorships, UPS has created a unique website at www.ups.com/golf.

The website has an interactive console leading visitors to an overview of each UPS sponsored event, including information on each event’s featured hole. There is also information about UPS’s logistics services, real-time leaderboards, golf blogs and a chance to win merchandise signed by professional golfers.

UPS delivers to more of the UK than ever beforeNew enhancements to domestic service

You can now reach more of

the UK on one of UPS’s express

services than ever before.

UPS has expanded its express

service coverage across the

UK as part of a series of

investments to better serve the

needs of our customers.

Customers shipping within the UK can do so with confidence when using our dependable portfolio of time- and day-definite services. Whether your packages need to arrive before 9.00am, 10.30am, 12 noon or by end of day, rest assured that all of our domestic services, including our suite of UPS Express® services and the budget-friendly, UPS Standard® service are covered by UPS’s money-back guarantee. All services are supported by our range of free technology solutions which allow you to prepare and track shipments

online, as well as receive proactive emails about the status of all your shipments.

These current developments come as part of an ongoing investment programme UPS is

devoting to its UK operations, allowing you to take advantage of the same high level of reliability and service, whether shipping domestically or internationally.

Along with an expanded distribution network, UPS has also recently opened a new domestic sorting hub in Tamworth, which is the second largest UPS facility outside the US. With a warehouse space of 29,000 square metres and a sorting capacity of 42,000 packages per hour, the facility illustrates how UPS is well positioned to serve the changing needs of UK businesses long into the future.

For more information about our expanded services, please contact your UPS sales representative or phone 08457 877 877.

Q & A with Wolfgang Flick on page 4

Prada Transformer on page 3

Business solutions online on page 3

Inside Story

Packaging tips on page 2

UK

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Issue 2, 2009

Proof: B Date: 23/02/09Title: ups 2009 Forum Issue: 1 ID: Generic-English (GEN-en) Version: 11 Master: 02

Service updates

Reduce time and paper

waste with your international

shipments

When dealing with customs, the timeliness of shipments can often depend on the accuracy and completeness of accompanying paperwork. UPS Paperless® Invoice helps eliminate paperwork-related delays by submitting your commercial invoices electronically.

Available for shipments to destinations where customs offices accept electronic forms, Paperless Invoice is free of charge and is integrated with all current UPS shipping systems.

Customers using this service simply enter shipment commodity details into their UPS shipping system and the data is securely transmitted, allowing shipments to be processed earlier. Electronic

transmission also minimises redundant paperwork, incorrectly copied forms and the risk of paperwork being lost in transit.

For more information about Paperless Invoice, please contact your UPS sales representative.

Use the right packaging for

your shipment

Whether shipping clothing or light bulbs, packaging can sometimes be a daunting task, especially when deciding on the type of container to use, how much padding is needed and how to properly seal and close the container. UPS’s new Packaging Advisor takes the guesswork out of packing by leading you through industry guidelines for safe shipping.

Found on www.ups.com under the ‘Support’ tab, this online tool first asks you a few questions about the type of item you are shipping and additional details, such as exterior dimensions and weight.

Based on the information you provide, the Packaging Advisor will display a number of packing options and guidelines on choosing the exterior carton, inside cushioning and safe item placement in the container.

Electronic

transmission also

minimises redundant

paperwork and the

risk of paperwork

being lost in transit.

There are also tips on how to properly seal and label the shipment for efficient processing in the UPS system.

Since the Packaging Advisor is located online, this reference tool is easily accessible wherever there is an Internet connection. Visit www.ups.com and give it a try today.

Brief updates in products and

technology

This July, UPS is expanding its domestic Express service coverage to Bosnia and Croatia. Customers in these areas now have the opportunity to use the same world-class UPS service for their domestic shipments as well as their international shipments.

Visitors to the Russian UPS website will notice a number of improvements, including the availability of UPS Internet Shipping, ‘Calculate Time and Cost’ function for freight shipments and UPS’s popular online tools. Quantum View Data, a UPS service that allows you to download shipping and billing information for use in your internal systems, is now available for customers in the Czech Republic, Poland, Hungary, Russia, Switzerland and Turkey.

Case Study: Mizuno USAFrom the factory to the fairway

On the fabled course in

Augusta, Georgia, it takes a

professional golfer serious

determination and control in

order to drive the ball 300

yards to the green. Equally

remarkable is the amount of

timing and precision needed to

get the clubs to the tee.

Founded by Rihachi Mizuno more than 100 years ago in Osaka, Japan, Mizuno manufactures and sells sports equipment to enthusiasts all over the world. One of its North American offices, Mizuno USA, focuses on golf, baseball and volleyball equipment.

In order to make its high-quality golf clubs, components are shipped from various locations in Asia to a cross-docking facility in California and ultimately to an assembly plant in Atlanta, Georgia. Managing such a global supply chain requires a high level of precision and coordination.

“UPS Supply Chain Solutions® manages our transportation bookings from factories at origin and matches our purchase orders to what is actually being shipped,” explains Mizuno’s International Transportation Manager William Crockett.

“We create a PO here, and electronically transmit it to UPS as well as our factory. And then UPS coordinates the shipments from that point, checking to make sure everything is on schedule to ship. UPS captures just about every piece of information there is on the shipment for us.”

This information includes colours, styles and inventory codes. Using a report from Flex Global View, Crockett and his logistics team can schedule the delivery of containers and prioritise shipments based on customers’ needs. “What’s great about Flex Global View,” says Crockett, “is that we

can see the progress and the milestones of a container from departure to arrival.”

UPS also manages the compliance of Mizuno’s vendors to the Standard Operating Procedure, a guide mutually created by Mizuno

USA and UPS. In addition to checking on the readiness of containers for shipments, UPS sends comments from the suppliers through Flex Global View. This allows Mizuno to facilitate progress in the event of delays and ensure that its products arrive at

their destination, whether in Augusta, Georgia or Surrey, England, well before tee time. “We don’t have people in every factory or every foreign port,” says Crockett. “But we have UPS to manage those origins.”

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Issue 2, 2009

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UPS serves as logistics partner for the Prada Transformer project

Earlier this spring, UPS was

selected by Prada, one of the

world leaders in the luxury

goods market, as a logistics

partner for Prada’s non-profit

cultural project in South Korea,

Prada Transformer. Working

closely with Prada, UPS

managed the transportation of

materials from Italy to Seoul for

the opening events in April.

In order to deliver the nine tonnes of needed materials on time, UPS relied on its Supply Chain and Small Package divisions to handle the logistics and other stages of transporting the materials. The sets and garments were collected from Prada’s headquarters in Tuscany and Milan and brought to the UPS international air hub in Cologne.

From there, the material was flown to UPS’s international air hub in Shanghai and transferred to a flight to Seoul. The materials were then stored in a

UPS facility until final delivery for the opening event, “Waist Down – Skirts by Miuccia Prada.”

Hosting a series of cross-cultural exhibitions and events from now until October, the Prada Transformer is a “shape-shifting” pyramid-shaped building designed by architecture firm OMA/Rem Koolhaas. The temporary structure is located on the grounds outside Seoul’s historic Gyeonghui Palace.

"The Prada Transformer is a unique project, not only for its revolutionary architecture and its rich cultural programme, but also for its complexity,” said Sebastian Suhl, President of Prada Asia Pacific. “The successful delivery of all the opening materials across multiple borders and seven time zones is a testament to UPS’s flexibility. Reducing the

complexity thanks to UPS’s reliability has allowed us to focus on the successful project delivery."

Selected by Prada as the ideal logistics partner for their

cultural event, UPS will also transport art works to the Prada Transformer for Nathalie Djurberg’s “Turn into Me” exhibition, opening this August.

"The successful delivery

of all the opening

materials across

multiple borders and

seven time zones is

a testament to UPS’s

flexibility."

All of UPS’s business solutions at your fingertips

This redesigned tool offers user-friendly ways to explore and discover solutions for your business challenges. Access the new business solutions section on www.ups.com by clicking the “Business Solutions” tab at the top of the page.

Find

Clicking here accesses our Solution Finder, which is an intuitive application that lists relevant UPS services, based on how you answer questions related to business needs. As information is entered, the applicable solutions are displayed at the right of your screen.

Browse

For those who simply prefer to explore the options themselves, this feature lists all of UPS’s business solutions by category. Place your mouse pointer over a subcategory and view brief explanations instantly. Clicking on a subcategory will display a detailed list of solutions, allowing you to explore your options in-depth, including the option to view various informative videos and demos.

Search

This function is especially useful for customers who are looking for a specific business solution. Queries can be filtered by industry or by the role you have in your business.

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Issue 2, 2009

Proof: B Date: 23/02/09Title: ups 2009 Forum Issue: 1 ID: Generic-English (GEN-en) Version: 11 Master: 02

UPS Europe SA/NV | Siège social/Statutaire zetel: Avenue Arianelaan 5, B- 1200 Bruxelles/Brussel, Belgique/België - RPM/RPR (Bruxelles) 0458.890.865 - T.V.A./B.T.W. BE 0458-890-865 - West LB AG Dusseldorf 1 293 414

Questions? Comments? Please tell us!Your opinion is very important to us. Help us keep this newsletter customer-focused by sending suggestions or comments to tellus@upsforum.com. Additionally, if you have any article suggestions or would like to see your company featured in Forum as a case study, please give us your contact details, account number and a brief description of why you think your company should be profiled in a UPS case study.

UPS Forum is published several times a year by UPS for managers and executives of firms whose scope for business is within Europe, Middle East and Africa. Reproduction of UPS Forum in whole or in part is prohibited without written permission. Persons or publications quoted and the comments of guest contributors do not necessarily represent the corporate opinion of UPS. We welcome questions and comments from readers. Please forward correspondence to: Forum Editor, UPS Europe SA/NV, 5 Avenue Ariane, 1200 Brussels, Belgium.

Care has been taken to ensure that the content of this newsletter is as accurate as possible. However the accuracy and completeness of the information in this newsletter cannot be guaranteed. Customers should not act upon the information contained in this newsletter without contacting their appropriate UPS contact.

© 2009 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color/colour brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

Q&A with Wolfgang Flick – President, UPS Europe

Many believe the aftermath of

the economic events in 2008

and early 2009 will be a long

and arduous journey for those

active in the global market.

Wolfgang Flick, president of

UPS Europe, has been with UPS

since its first venture into the

European market more than

30 years ago. As the head of

UPS’s operations in Europe,

the Middle East and Africa,

Wolfgang sheds some light on

our company’s approach to the

economic situation and UPS’s

goals for the year ahead.

What is UPS’s view on the current economic situation?

UPS is a resilient company that has been in existence for over 100 years. During this time, we have developed a tradition

of renewing and reinventing ourselves to meet changing business situations. As a result, we have emerged from many historical economic downturns, each time in a better position to provide our customers with the services they need to succeed. Despite current challenges, UPS will continue to provide reliable service to customers, just as we have always done in the past 100 years.

How is the slowing economy affecting UPS’s business investments?

Faced with today’s economic climate, we are increasing our long established emphasis on efficiency by lowering costs in areas that do not compromise

our service to customers. This includes adjusting our flexible transportation network to match changing volume levels and observing a global-wide freeze on management salaries.

UPS strongly believes in the value of global commerce and understands that in the current economy, global businesses want to stay responsive to their

customers’ needs. UPS is not reducing investments for the future. In the Europe region, we recently opened the company’s largest ground package sorting facility outside the US in Tamworth, UK, and further investments have led to the introduction of domestic express services in 16 countries across Europe, the Middle East and Africa, earlier this year. Additionally, this year’s opening of a 20,000 square metre logistics and storage facility in Roermond, the Netherlands, will better enable us to serve our clients in the healthcare industry.

What are UPS’s plans for 2009 and beyond?

Though 2009 will be tougher than 2008, UPS maintains a confident long-term view

"UPS strongly

believes in the value

of global commerce

and is not reducing

investments for the

future."

and will keep expanding the value of the services and business solutions we offer. Continued practice of efficient asset-utilisation will sustain our healthy cash flow and will help us remain a flexible, long-term transportation partner to our customers. We will also continue to fine-tune our integrated global network, which currently includes substantial operations in every region of the world. As the world becomes increasingly bound by global trade, UPS’s mission is to reliably facilitate the international flow of goods and to keep global commerce moving.

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