Since you are a UPS customer, we want to give you advance notice of new UPS rates that will take effect January 2, 2006.

UPS published On-Demand Rates* will change as follows:
Commercial Ground will increase 3.9%, and UPS Air and International Services will increase 5.5%.

In addition, we are recalibrating our Air and International fuel surcharge index downward by 2%. UPS remains the only express package delivery company with an air fuel surcharge cap, passing along significant savings to our customers. As fuel prices decline and the fuel surcharge calculation falls below the 12.5% cap, customers will see even greater savings as a result of the lowered index. UPS's air fuel surcharge is the lowest among air express carriers. By comparison, our competitors are applying fuel surcharges of 20% or more.

The fuel surcharge index calculation for UPS Ground remains unchanged and is pegged to fluctuations in the U.S. Energy Department's On-Highway Diesel price.

Adjustments will be made to accessorial charges in 2006. The residential surcharge for UPS Ground will increase by $0.25. The residential surcharge for UPS Air Services and UPS 3 Day Select(SM) will increase by $0.35. The Additional Handling charge and the charge for Collect on Delivery (C.O.D.) service will increase by $1 per package. UPS Delivery Confirmation and Signature Required services will increase by $0.25 per package, and Adult Signature Required service will increase by $0.50.

Thank you for the business you entrust to UPS.