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FedEx Express, a subsidiary of
FedEx Corp., has placed into service the first of its new, low-emission, hybrid
electric powered delivery vehicles in concert with the Sacramento Metropolitan
Air Quality Management District, Environmental Defense and Eaton Corporation.

The official roll out took place at a state capitol ceremony today attended by
California Governor Arnold Schwarzenegger. The FedEx OptiFleet E700 hybrid
electric vehicle will
decrease particulate emissions by 90 percent,
reduce smog-causing emissions by
75 percent and
travel 50 percent farther on a
gallon of fuel, reducing
fuel costs by one-third.
FedEx Express will place 18 additional hybrid electric diesel delivery trucks
into service in selected cities throughout 2004. New York City, Houston,
Washington, D.C., Denver and several other cities are possible locations for
future rollouts of the hybrid electric trucks. This innovative program has the
potential for 30,000 medium-duty vehicles.
"FedEx Express is proud to be the first company to make a long-term market
commitment to develop and utilize hybrid electric delivery trucks," said David
J. Bronczek, president, FedEx Express.

"We are proud to work with FedEx Express, Environmental Defense and Eaton in
bringing this advanced heavy-duty hybrid technology to Sacramento," said Norm
Covell, Sacramento's Air Pollution Control Officer. "These clean, efficient
vehicles are just another example of how Sacramento Metropolitan Air Quality
Management District aims to deliver healthier air to our community. We want to
thank the members of this project for working to make this technology
commercially available so that the significant air quality and energy efficiency
improvements can benefit the broadest possible market applications."
FedEx Express also welcomed the opportunity to work with Environmental Defense,
an organization recognized for its long history of working with industry leaders
to leverage their purchasing power to create real environmental benefits that
protect the bottom line.
Cleveland, Ohio-based Eaton Corporation, one of the world's most recognized
industrial manufacturers, produced the hybrid electric powertrain for the
vehicle.
FedEx Express and Environmental Defense began working together in 2000 to create
a delivery truck that would dramatically decrease emissions and fuel use.
Through a competitive process, Eaton Corporation was selected from more than 20
manufacturers who expressed interest in creating a cleaner vehicle using a
variety of technologies. Since the beginning of the project, progress toward
goals has been assessed against the 1999 FedEx Express W700 standard delivery
vehicle, which represents the most common model in the FedEx Express fleet.
A four-cylinder engine replaces the six-cylinder version currently used in the
FedEx Express W700 delivery vehicle. The engine size is reduced because of the
added power provided by the electric motor. A particulate trap has been added to
the truck to further reduce emissions.
Lithium-ion batteries capture and store energy during the "regenerative braking"
phase of the vehicle's operation, providing a source of stored electric power
for the motor during future acceleration. The hybrid electric E700 has a gross
vehicle weight of approximately 16,000 lbs. and a cargo capacity of
approximately 670 cubic feet.
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