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UPS invests in Compressed Natural Gas vehicles and related infrastructure 15 March 2016

Helping to create and support nationwide natural gas market

UPS is to build an additional 12 compressed natural gas (CNG) fuelling stations and add 380 new CNG tractors to its growing alternative fuel and advanced technology fleet. The CNG fuelling stations and vehicle purchases totalling US$100.0 million are part of UPS’s ongoing commitment to diversify its fuel sources and reduce its environmental impact.

UPS owns its fleet and infrastructure. That allows it to invest for the long-term, rather than planning around near-term fluctuations in fuel pricing.

CNG is part of a broad investment in a variety of alternative fuel vehicles. Taken together, all of its alternative fuel vehicles represent 6.0% of the more than 100,000 UPS global fleet, and have driven a 10.0% annual reduction in use of conventional fuel.

UPS is working to meet its goal of logging one billion miles with its alternative fuel and advanced technology fleet by the end of 2017, using a Rolling Laboratory approach to determine the right alternative fuel solutions to meet the unique needs of route-specific driving environments.

CNG is made by compressing natural gas to less than 1.0% of the volume it occupies at standard atmospheric pressure. The use of natural gas reduces greenhouse gas emissions 6.0% to 11.0%, according to the US Department of Energy.

The 12 new CNG stations will be built by TruStar Energy in Amarillo, Texas; Chattanooga, Tenn.; Columbia, S.C.; El Paso, Texas; Fort Worth, Texas; Kansas City, Kan.; Phoenix, Ariz.; Reno, Nev.; San Antonio, Texas; Tifton, Ga.; Trinidad, Colo., and Willow Grove, Pa.

The new CNG tractors to be deployed in these cities will be manufactured by Kenworth. Agility and Quantum Fuel Systems will provide the CNG storage systems. This investment builds on the Company’s existing 18 CNG fuelling stations in Alabama, California, Colorado, Georgia, Kansas, Kentucky, Louisiana, Oklahoma, Pennsylvania, Texas, Virginia and West Virginia and operates CNG vehicles in Germany, the Netherlands and Thailand.