ATLANTA, May 2, 2005 - The financial services subsidiary of UPS (NYSE:UPS) has significantly expanded its geographic participation in the U.S. Small Business Administration's Preferred Lender Program, slashing the amount of time and effort it takes for business customers to secure SBA loans.

In a related illustration of its commitment to helping small and medium businesses grow, UPS Capital Business Credit^SM also has expanded its lender network to cover every region of the United States, nearly doubling its team of lending agents around the country.

Being a Preferred Lender Program (PLP) participant is the highest designation extended by the SBA for the processing of loans under its 7(a) program. It gives the lender the ability to make loan decisions on behalf of the SBA, thereby reducing the time it takes UPS Capital^SM to process, approve and fund loans from weeks to days. UPS Capital Business Credit, a subsidiary of UPS Capital, now has been designated by the SBA as a PLP participant in the SBA's 75 districts covering all of the contiguous United States. Previously, UPS Capital Business Credit was a PLP participant in 16 SBA districts.

"Enhancing cash flow and accessing working capital are certainly among the most pressing needs for small and medium businesses," said Bob Bernabucci, president, UPS Capital. "By bolstering our SBA PLP participation and the reach of our lender network, UPS Capital can further help small businesses obtain much needed funding while also assisting companies synchronize the movement of their funds with their goods and information."

According to the SBA, the demand by American small business for capital continues to accelerate. Indeed, small businesses established a new record pace of borrowing during the first quarter of fiscal 2005.

UPS Capital Business Credit has consistently been a leading lender in the SBA's 7(a) loan program and for fiscal year 2004 was a top 20 SBA lender providing 69 SBA transactions valued at US$47 million. Additionally, UPS Capital Business Credit is a leading lender in the government-guaranteed loan programs of the U.S. Department of Agriculture and the Export-Import Bank of the U.S.

In addition to facilitating loans through these programs, UPS Capital also provides a broad array of services from traditional commercial lending to accelerated payments for UPS's Collect On Delivery (C.O.D.) service and insurance products from UPS Capital Insurance Agency, Inc.

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. Headquartered in Atlanta, Ga., UPS serves 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.

Learn more about UPS Capital and small business lending.

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Except for historical information contained herein, the statements made in this release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements, including statements regarding the intent, belief or current expectations of UPS and its management regarding the company's strategic directions, prospects and future results, involve certain risks and uncertainties. Certain factors may cause actual results to differ materially from those contained in the forward-looking statements, including economic and other conditions in the markets in which we operate, governmental regulations, our competitive environment, strikes, work stoppages and slowdowns, increases in aviation and motor fuel prices, cyclical and seasonal fluctuations in our operating results, and other risks discussed in the company's Form 10-K and other filings with the Securities and Exchange Commission, which discussions are incorporated herein by reference.

UPS Capital loans are made in California pursuant a Department of Corporations California Finance Lenders License. Government guaranteed loans are offered through UPS Capital Business Credit, a subsidiary of UPS Capital Corporation. UPS Capital Corporation is neither an agent for, nor associate of, UPS Capital Business Credit for the purposes of originating, processing, underwriting or servicing government guaranteed loans (e.g., SBA, USDA or Ex-Im guaranteed loans). Products may not be available in all areas and may be modified based on requirements. Check with your UPS Capital or UPS Capital Business Credit representative for local availability. Credit availability is subject to approval. Insurance is offered through UPS Capital Insurance Agency, Inc. and through the following licensed agency affiliates: UPS Capital Insurance Agency, Inc. of California in California, UPS Capital Insurance Agency, Inc. of Massachusetts in Massachusetts and UPS Capital Insurance Agency, Inc. of Nevada in Nevada and Louisiana. Insurance products may not be available in all jurisdictions. C.O.D. Enhancement Services products are offered through UPS Capital Trade Protection Services, Inc. The C.O.D. Enhancement Services program is governed by the terms and conditions of the contract. Insurance products are governed by the terms and conditions of the policy. Certain limitations and exclusions may apply.

For More Information Contact:

Laurie Mallis
UPS
404-828-7183
lmallis@ups.com

Mike Slatin
Fleishman-Hillard
314-982-8661
slatinm@fleishman.com