FedEx Freight | A Message from P. R. today on FedEx Canada.

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As we begin 2007, we're truly creating a new chapter in the history of
FedEx Freight, the LTL industry as a whole, and fulfilling the Purple
Promise for our customers and employees. With the addition of FedEx
National LTL to the Freight Segment, FedEx will offer comprehensive
LTL services to the marketplace in the US and throughout North
America.

Building on the foundation of the former Watkins Canada Express, we're
developing our own service network in Canada. FedEx Freight Canada
will offer direct service into and out of Canada, something our
customers have been asking us to provide for many years. We're also
planning to leverage FedEx Freight's outstanding information
technology to better serve the Canadian LTL market.

We're well on our way with this strategy. The FedEx Freight Canada
general office will soon be relocated to a larger service center that
will provide a better work environment for our people while also
allowing us to operate more efficiently. Re-branded equipment is
being put into service, and systems are being added to provide
customers with complete visibility for their Canadian shipments.

We have an aggressive growth strategy for Canada - in order to ensure
that we have the depth of resources and support necessary to execute
these plans, the FedEx Freight Canada team will begin reporting to
Larry Miller, president and CEO, FedEx Freight East. Roy Mackay and
the rest of the FedEx Freight Canada leadership TEAM will remain in
their current positions.

I want to thank all of the many people throughout FedEx Freight, FedEx
National LTL and FedEx Freight Canada for your outstanding work and
dedication. We've made tremendous progress in a short time and have
an outstanding opportunity before us. With your continued People First
teamwork and Purple Promise support, there's nothing that can stand in
our way!

Have faith in the future!
Pat
 
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