FedEx GROUND SUPPORT SELECTS NORTHERN KENTUCKY FOR NEW DISTRIBUTION HUB

Boone County, KY - FedEx Ground Support Systems, Inc. has announced earlier today that it has selected Northern Kentucky for its newest distribution hub, a 335,000 sq. ft. distribution facility on a 96-acre site in the Enterprise V Industrial Park in unincorporated Boone County.

Construction is anticipated to begin in the fall of 2003 with completion planned for mid-2005. Within the first three years of operation, FedEx expects to employ more than 80 office and clerical employees and 300 package handlers at the business-to-business small package distribution hub, and create an additional 100 independent contractor positions. At full capacity, the new hub will process up to 45,000 packages per hour and could employee more than 235 office and clerical employees, 1,300 package handlers, and 400 independent contractors.

Factors cited by FedEx Ground on this decision include Northern Kentucky's central location, close proximity to customers' distribution centers and the Interstate Highway system, and a skilled and available workforce.

"This decision clearly shows the strength and vitality of FedEx Ground and the Northern Kentucky regional economy," said Cabinet for Economic Development Secretary Gene Strong.

"We are quite pleased to welcome FedEx Ground to Northern Kentucky and pledge to work with FedEx Ground on a mutually successful enterprise in Boone County," said Gary W. Moore, Boone County Judge-Executive and Northern Kentucky Tri-ED Chairman.

"FedEx Ground's decision to locate in Northern Kentucky confirms that Northern Kentucky is well-positioned and suitable for major corporate investment," stated Danny G. Fore, Northern Kentucky Tri-ED President.

Serving as North America's second largest ground carrier for business-to-business small package delivery, FedEx Ground is the fastest growing transportation company in U.S. history, growing from 48 locations in 1995 to over 500 locations in 2002. With more than 41,000 employees and contractors nationwide and a ground fleet of more than 13,000 vehicles, FedEx Ground currently handles approximately 2.1 million packages per day.

Founded in 1987, the Northern Kentucky Tri-County Economic Development Corporation (Tri-ED) serves as the primary economic development marketing agency for Boone, Kenton and Campbell counties in Northern Kentucky. Through July 2003, Northern Kentucky Tri-ED has been responsible for 359 locations or expansions in Northern Kentucky, representing 36,435 direct new jobs and over $3.3 billion in new investment. For more information on Northern Kentucky Tri-ED, visit http://www.northernkentuckyusa.com/

The Kentucky Cabinet for Economic Development is the primary state agency in Kentucky responsible for creating new jobs and new investment in the state. New business investment in Kentucky in 2002 totaled more than $3.2 billion with the creation of nearly 13,000 new jobs. Information on available development sites, workforce training, incentive programs, community profiles, small business development and other resources is available at www.thinkkentucky.com.