FY11Investors and Lenders Meeting

David F. Rebholz President & CEO

FY11Investors and Lenders Meeting

$0

$1

$2

$3

$4

$5

$6

$7

$8

FY05 FY06 FY07 FY08 FY09 FY10

$ Billions

$0

$600

$1,200

FY05 FY06 FY07 FY08 FY09 FY10

$ Millions

FY11Investors and Lenders Meeting

0

1

2

3

4

FY05 FY06 FY07 FY08 FY09 FY10

Packages in Millions

FY11Investors and Lenders Meeting

Total lanes accelerated (excluding AK, PR, and HI):

Percentages of lanes with improved transit days:

Since FY03

FY11Investors and Lenders Meeting

vs.

As of July 2010

FY11Investors and Lenders Meeting

FY11Investors and Lenders Meeting

100

300

500

700

900

1,100

1,300

FY05 FY06 FY07 FY08 FY09 FY10

ADV (Thousands)

FY11Investors and Lenders Meeting

Shipper FedEx SmartPost USPS

FY11Investors and Lenders Meeting

Christine P. Richards Executive Vice President General Counsel & Secretary

FY11Investors and Lenders Meeting

FY11Investors and Lenders Meeting

FY11Investors and Lenders Meeting

FY11Investors and Lenders Meeting

William J. Logue President & CEO

FY11Investors and Lenders Meeting

FY11Investors and Lenders Meeting

Source: SJ Consulting Group, Inc.

LTL Market Trends

$29.5 $32.4 $33.7 $33.6 $33.3

$25.2 $27.3

$0

$5

$10

$15

$20

$25

$30

$35

$40

2004 2005 2006 2007 2008 2009 2010 (Est.)

Industry Revenue

$ Billions

$29.5 $32.4 $33.7 $33.6 $33.3

$25.2 $27.3

$0

$5

$10

$15

$20

$25

$30

$35

$40

2004 2005 2006 2007 2008 2009 2010 (Est.)

Source: SJ Consulting Group, Inc.

LTL Market Trends

9% 9%

11%

13%

16%

20%

18%

16%

14%

0%

22%

Industry Revenue FedEx LTL Market Share

12%

10%

14% 14%

$ Billions

FY11Investors and Lenders Meeting

FY11Investors and Lenders Meeting

FedEx Freight Priority •  Industry-leading Transit •  Money Back Guarantee

FedEx Freight Economy •  Priority Transit + 1 Day •  Economical, Reliable Option

FY11Investors and Lenders Meeting

Source: Q3 2009 NTD and SJ Consulting Group, Inc.

Short Haul

Long Haul

Long Haul

Short Haul

Source: Q3 2009 NTD and SJ Consulting Group, Inc.

Growth Opportunity

Short Haul

Long Haul

Long Haul

Short Haul

Priority

Economy

FY11Investors and Lenders Meeting

FY11Investors and Lenders Meeting

FY11Investors and Lenders Meeting

Day 3 Kansas City, KS

Day 2

FY11Investors and Lenders Meeting

Priority

SBN 1247957071 R0

BKF CGT

08-18-2010 08-23-2010

0

08-19-2010 05:15 Priority

DOOR 114 SBO G 08/19/10 04:45

Priority

SBN 1247957173 R0

BKF CGT

08-18-2010 08-24-2010

0

08-19-2010 20:00 Economy

DOOR 168 SBC G 08/19/10 19:30

FY11Investors and Lenders Meeting