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Kate Gutmann Vice President Worldwide Strategic Accounts UPS.

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1 Kate Gutmann Vice President Worldwide Strategic Accounts UPS

2 UPS Serving Customers Throughout the World Multiple modes and multiple service options to fit your time and cost parameters: –Small Package –LTL and Truckload –Domestic Air Freight –International Air Freight –Ocean Freight –Supply Chain Services

3 Growth Supply Chain Require new distribution points 40% Critical to long-term success 66% Expand cross border business 31% Reduce costs 51% Cut costs and remain competitive 29% Supply Chain Research There are three reasons small & medium companies are going global New markets and revenue growth 70% Cost Savings

4  Seems too risky  Lack of knowledge of international markets  Unfamiliar with customs, regulations and laws 2007 UPS BUSINESS MONITOR Primary Concerns Secondary Concerns  Intellectual Property Rights Risks  Lack of Local Management  Communications / Distance  Lack of Financing  Time constraints 2005 US MARKET SURVEY Medium and small customers are concerned and looking for information and peace of mind Supply Chain Research

5 Technology Solutions New UPS Global Trade microsite is the central hub for all international information Information on:  International shipping  Import / export  Trade resources UPS Global Advisor facilitates international trade  Step-by-step assistance  Country regulations  Country specific forms  Visibility to freight and package  Reports exceptions  Interactive: clear exceptions on line UPS Quantum View provides proactive information across all services UPS Technology Solutions provide the answers

6 Ganache For Lips –Entrepreneur, Patricia West, creates acclaim from adversity –Develops homemade lip balm with chocolate to fight fatigue from cancer treatments –Ganache for Lips launched in California –U.S. Commercial Services supports with international sales strategy and advice on distributors –UPS assists with technology tools to handle shipping online –Managing export operation to six countries from kitchen table

7 Manufacturing Distribution Sales  Cost reduction – sourcing from Asia  New growth – intra Asia sales  Optimize supply chain – relocate production to lower wage environment Larger companies are leveraging opportunities by shifting their supply chains

8 Situation:Late arrival of inventory Challenge:Keeping inventory flowing and on schedule Solution:Supplier Management Selectively use international air freight Results: Improved cycle time Reduced total transportation cost Nailed delivery date performance

9 UPS welcomes DHL customers and is ready to serve your business We realize your business may be affected by recent changes in DHL’s operations and DPWN’s announcement on 11/10 of the “Closure of domestic air and ground business in the US effective 30 th January 2009.” So, as you consider a switch, UPS is ready to provide delivery services you can count on. You’re backed by the world’s largest delivery network. – Supported by the world’s ninth largest airline. – UPS’s global reach spans more than 215 countries and territories. UPS reliability also delivers peace of mind. – Work with a proven carrier that’s served U.S. businesses for more than 100 years. With our track record and stability, your shipments will always be in good hands. 1-800-PICK-UPS

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