1090727--2/26/2010--UNITED_PARCEL_SERVICE

related topics

{operation, international, foreign}

{financial, litigation, operation}

{system, service, information}

{regulation, change, law}

{cost, regulation, environmental}

{cost, operation, labor}

{cost, contract, operation}

{tax, income, asset}

{acquisition, growth, future}

{condition, economic, financial}

{competitive, industry, competition}

{product, liability, claim}

Cautionary Statement About Forward-Looking Statements General economic conditions, both in the U.S. and internationally, may adversely affect our results of operations. We face significant competition which could adversely affect our business, financial position and results of operations. Our business is subject to complex and stringent regulation in the U.S. and internationally. Increased security requirements could impose substantial costs on us. We may be affected by global climate change or by legal, regulatory or market responses to such potential change. Strikes, work stoppages and slowdowns by our employees could adversely affect our business, financial position and results of operations. We are exposed to the effects of changing prices of energy, including gasoline, diesel and jet fuel, and interruptions in supplies of these commodities. Changes in exchange rates or interest rates may have an adverse affect on our results. If we are unable to maintain our brand image and corporate reputation, our business may suffer. A significant privacy breach could adversely affect our business and we may be required to increase our spending on data security. We have invested in a technology infrastructure which supports our global air and ground network and is critical to support our operations and customer needs. Any major disruption to this infrastructure could adversely impact our operations, customers and global commerce. We make significant capital investments in our business of which a significant portion is tied to projected volume levels. We derive a significant portion of our revenues from our international operations and are subject to the risks of doing business in emerging markets. We are subject to changes in markets and our business plans that have resulted, and may in the future result, in substantial write-downs of the carrying value of our assets, thereby reducing our net income. Employee health and retiree health and pension benefit costs represent a significant expense to us. We may be subject to various claims and lawsuits that could result in significant expenditures. We may not realize the anticipated benefits of acquisitions, joint ventures or strategic alliances. Insurance and claims expenses could have a material adverse effect on our business, financial condition and results of operations.

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1090727--2/26/2010--UNITED_PARCEL_SERVICE_INC