UPS Capital Expanding Role in Small Business Lending

Atlanta, November 28, 2006

Ranked in Top 15 for U.S. SBA Lenders

Continuing its commitment to small businesses, UPS Capital^SM, the financial services arm of UPS (NYSE:UPS), has become one of the nation's top lenders under the government-guaranteed 7(a) loan program of the U.S. Small Business Administration (SBA).

For the SBA's fiscal year ended Sept. 30, 2006, UPS Capital Business Credit, a unit of UPS Capital, facilitated 304 SBA 7(a) loans valued at $190.7 million. That activity puts UPS Capital Business Credit among the SBA's top 15 lenders as measured by dollar value. Compared with fiscal 2005, UPS Capital Business Credit's SBA activity in 2006 increased more than 22 percent in both the number and dollar value of loans facilitated.

"UPS is committed to helping small businesses succeed and grow and that means we strive to help them not only move their goods and information but also secure the financing they need," said Bob Bernabucci, president, UPS Capital.

UPS can offer solutions to small businesses that combine financial services with the company's core package shipping and supply chain capabilities. One beneficiary of this comprehensive portfolio is TrueWave, LLC, a producer of high-end audio equipment under the brand name Wadia.

In addition to relying on UPS Capital Business Credit to facilitate an SBA loan for business acquisition and working capital, TrueWave ships its products via UPS air freight services and UPS Ground. The company uses UPS WorldShip¿ to process shipments and Quantum View^SM Notify for package status email notifications.

"After reaching out to several traditional banks for lending options, we decided to go with UPS Capital because they offered a complete solution for our business," said John Schaffer, president of Wadia. "The UPS Capital team really understood our vision, and they worked with us every step of the way to ensure that we got the very best service."

A key reason UPS Capital has been able to achieve double-digit SBA lending growth has been its participation in the SBA's Preferred Lender Program, which slashes the amount of time and effort it takes for business customers to secure SBA loans. In 2005, UPS Capital Business Credit became a PLP participant in all of the SBA's 75 districts covering the contiguous United States. UPS Capital Business Credit also is a leading lender in the government-guaranteed loan program of the Export-Import Bank of the U.S.