Exhibit 99.1

FOR IMMEDIATE RELEASE

FedEx Corp. Reports Higher Fourth Quarter
and Full Year Earnings
FedEx International Priority Package Q4 Volume Grows 23 Percent

MEMPHIS, Tenn., June 16, 2010 ... FedEx Corp. (NYSE: FDX) today reported earnings of $1.33 per diluted share for the fourth quarter ended May 31. Last year, the company reported a fourth quarter loss of $2.82 per diluted share, including $3.46 per diluted share of charges resulting primarily from the impairment of goodwill and aircraft. Excluding these charges, fourth quarter earnings were $0.64 per diluted share a year ago.

“FedEx delivered strong results in our fourth quarter, thanks to sequential growth in package volume and our ability to leverage our unique global networks to take advantage of a recovering economy,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. “We ended our fiscal year a stronger company, and I am confident FedEx is very well positioned for future revenue and earnings growth.”

Fourth Quarter Results

FedEx Corp. reported the following consolidated results for the fourth quarter:

	•		Revenue of $9.43 billion, up 20% from $7.85 billion the previous year
	•		Operating income of $696 million, up from an operating loss of $849 million last year
	•		Operating margin of 7.4%, up from (10.8%) the previous year
	•		Net income of $419 million, up from last year’s net loss of $876 million

Earnings increased as a result of stronger shipment growth in international express and continued growth at FedEx Ground. An operating loss at FedEx

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Freight, the reinstatement of certain employee compensation programs and higher aircraft maintenance expenses impacted the quarter’s results.

Full Year Results

FedEx Corp. reported the following consolidated results for the full year:

	•		Revenue of $34.7 billion, down 2% from $35.5 billion the previous year
	•		Operating income of $2.0 billion, up from $747 million last year
	•		Net income of $1.18 billion, up from last year’s $98 million
	•		Earnings per share of $3.76, up from $0.31 per share a year ago ($3.76 per share excluding the impact of impairment and other charges—see table)

Capital spending for fiscal 2010 was $2.8 billion, with $1.5 billion of investments largely related to more fuel-efficient aircraft, including the delivery of six Boeing 777Fs for use in the international network and 12 Boeing 757s.

Outlook

FedEx projects earnings to be $0.85 to $1.05 per diluted share in the first quarter and $4.40 to $5.00 per diluted share for fiscal 2011. This guidance assumes the current market outlook for fuel prices and a continued moderate recovery in the global economy. The company reported earnings of $0.58 per diluted share in last year’s first quarter. The capital spending forecast for fiscal 2011 is $3.2 billion, which includes the expected delivery of six Boeing 777Fs and 16 Boeing 757s, along with investments in information technology, vehicles and facilities in support of the company’s global growth strategy.

“We expect continued improvement in both revenue and earnings in fiscal 2011,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. “Resumed growth in industrial production and global trade is increasing demand for our transportation services, and yield management remains a top priority across all of our operating companies. However, we expect the growth in earnings in fiscal 2011 to be constrained by significant increases in fixed pension and volume-related aircraft maintenance expenses, along with higher anticipated healthcare costs. In addition, our earnings guidance includes increased costs related to the planned reinstatement of various employee compensation programs.”

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The company expects pension and retiree medical expenses to increase approximately $260 million year over year due to a lower discount rate. However, cash contributions to U.S. pension plans are expected to decline from approximately $850 million in fiscal 2010 to approximately $500 million in fiscal 2011.

“We remain fully focused on improving yields, margins, returns and cash flow. Our cash flow from operations was sufficient to fund our fiscal 2010 capital investments and we expect this to be the case again in fiscal 2011,” said Graf.

FedEx Express Segment

For the fourth quarter, the FedEx Express segment reported:

	•		Revenue of $5.88 billion, up 23% from last year’s $4.80 billion
	•		Operating income of $413 million, up from an operating loss of $136 million a year ago
	•		Operating margin of 7.0%, up from (2.8%) the previous year

FedEx International Priority^® (IP) average daily package volume increased 23%, led by exports from Asia. IP revenue per package grew 6% due to higher weight per package, higher fuel surcharges and a favorable exchange rate impact. U.S. domestic revenue per package grew 8% due to higher fuel surcharges and improved weight per package, while average daily package volume increased 1%.

Operating profit and margin improvements were driven by volume and revenue growth, particularly in higher-margin IP package and freight services. Results also include the partial reinstatement of certain employee compensation programs and higher aircraft maintenance expenses, primarily due to increased utilization. Last year’s fourth quarter operating income and margin were negatively impacted by one-time costs of $260 million associated with aircraft-related charges and severance programs.

FedEx Express added a ninth scheduled daily transpacific frequency in April, utilizing the capabilities of Boeing 777F aircraft. This additional frequency provides needed capacity from Asia to the U.S, and allows best-in-market cut-off times. Also in April, a third scheduled daily flight was added from Asia to Europe, providing the first-in-market next-day service from Hong Kong to all of Europe.

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FedEx Ground Segment

For the fourth quarter, the FedEx Ground segment reported:

	•		Revenue of $1.96 billion, up 15% from last year’s $1.70 billion
	•		Operating income of $319 million, up 57% from $203 million a year ago
	•		Operating margin of 16.3%, up from 11.9% the previous year

FedEx Ground average daily package volume grew 7% in the fourth quarter driven by increases in the business-to-business market and the FedEx Home Delivery service. Yield increased 5% primarily due to higher fuel surcharges. FedEx SmartPost average daily volume increased 23%, with yield increasing 6%.

Operating income and margin increased due to higher package yield and volume, as well as lower self-insurance expenses and improved productivity.

FedEx Freight Segment

For the fourth quarter, the FedEx Freight segment reported:

	•		Revenue of $1.23 billion, up 30% from last year’s $948 million
	•		Operating loss of $36 million, compared with an operating loss of $106 million a year ago
	•		Operating margin of (2.9%), compared with (11.2%) the previous year

Less-than-truckload (LTL) average daily shipments increased 34% and LTL yield declined 6% year over year due to the effects of discounted pricing.

Operating losses in the quarter were driven by lower yields and higher volume-related costs, as significantly higher shipment levels required increased purchased transportation and other expenses. The quarter’s operating loss also reflects an $18 million impairment charge related to the goodwill associated with the acquisition of Watkins Motor Lines (now FedEx National LTL). Last year’s results included $100 million of charges, mostly related to impairment of goodwill associated with the acquisition of Watkins Motor Lines.

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FedEx Services Segment

FedEx Services segment revenue for the fourth quarter, which included the operations of FedEx Office, was down 6% year over year, due to the September 1, 2009 realignment of FedEx SupplyChain Systems to the FedEx Express reporting segment and declines in copy product revenues.

Last year’s fourth quarter results for FedEx Services included an $810 million goodwill impairment charge related to the acquisition of Kinko’s (now FedEx Office).

Corporate Overview

FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $35 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its more than 280,000 team members to remain “absolutely, positively” focused on safety, the highest ethical and professional standards and the needs of their customers and communities. For more information, visit news.fedex.com.

Additional information and operating data are contained in the company’s annual report, Form 10-K, Form 10-Qs and fourth quarter fiscal 2010 Statistical Book. These materials, as well as a Webcast of the earnings release conference call to be held at 8:30 a.m. EDT on June 16 are available on the company’s Web site at www.fedex.com/us/investorrelations. A replay of the conference call Webcast will be posted on our Web site following the call.

Certain statements in this press release may be considered forward-looking statements, such as statements relating to management’s views with respect to future events and financial performance. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions in the global markets in which we operate, legal challenges or changes related to FedEx Ground’s owner-operators, new U.S. domestic or international government

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regulation, the impact from any terrorist activities or international conflicts, our ability to effectively operate, integrate and leverage acquired businesses, changes in fuel prices and currency exchange rates, our ability to match capacity to shifting volume levels and other factors which can be found in FedEx Corp.’s and its subsidiaries’ press releases and filings with the SEC.

Media Contact: Jess Bunn 901-818-7463
Investor Contact: Mickey Foster 901-818-7468
Home Page: fedex.com

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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES

The company believes that meaningful analysis of our financial performance requires an understanding of the factors underlying that performance and our judgments about the likelihood that particular factors will repeat. Excluding the impact of the fiscal 2009 fourth quarter impairment and other charges from that quarter’s and full year’s results will allow more accurate comparisons to those periods of our operating performance during fiscal 2010. The tables below present a reconciliation of our presented non-GAAP measures to the most directly comparable GAAP measures.

		2009				2009
		Full Year				Fourth Qtr.
		EPS				EPS
Non-GAAP Measure		$	3.76			$	0.64
2009 Fourth Quarter Charges1, 2			(3.45	)			(3.46	)
GAAP Measure		$	0.31				($2.82	)

FEDEX CORP. FINANCIAL HIGHLIGHTS

Fourth Quarter Fiscal 2010
(In millions, except earnings per share and FTEs)
(Unaudited)

		Three Months Ended												Twelve Months Ended
		May 31												May 31
		2010				2009				%				2010				2009				%
Revenue:
FedEx Express segment		$	5,877			$	4,797				23	%		$	21,555			$	22,364				(4	%)
FedEx Ground segment			1,962				1,704				15	%			7,439				7,047				6	%
FedEx Freight segment			1,231				948				30	%			4,321				4,415				(2	%)
FedEx Services segment			448				478				(6	%)			1,770				1,977				(10	%)
Other & eliminations			(90	)			(75	)			(20	%)			(351	)			(306	)			(15	%)
Total Revenue			9,428				7,852				20	%			34,734				35,497				(2	%)
Operating Expenses:
Salaries and employee benefits			3,677				3,265				13	%			14,027				13,767				2	%
Purchased transportation			1,299				1,015				28	%			4,728				4,534				4	%
Rentals and landing fees			595				591				1	%			2,359				2,429				(3	%)
Depreciation and amortization			488				496				(2	%)			1,958				1,975				(1	%)
Fuel			886				541				64	%			3,106				3,811				(18	%)
Maintenance and repairs			500				391				28	%			1,715				1,898				(10	%)
Impairment and other charges			18				1,204			NM					18				1,204			NM
Other			1,269				1,198				6	%			4,825				5,132				(6	%)
Total Operating Expenses			8,732				8,701				0	%			32,736				34,750				(6	%)
Operating Income (Loss):
FedEx Express segment			413				(136	)		NM					1,127				794				42	%
FedEx Ground segment			319				203				57	%			1,024				807				27	%
FedEx Freight segment			(36	)			(106	)			66	%			(153	)			(44	)		NM
FedEx Services segment			—				(810	)		NM					—				(810	)		NM
Total Operating Income (Loss)			696				(849	)		NM					1,998				747			NM
Other Income (Expense):
Interest, net			(19	)			(21	)			(10	%)			(71	)			(59	)			20	%
Other, net			(5	)			(4	)			25	%			(33	)			(11	)		NM
Total Other Income (Expense)			(24	)			(25	)			(4	%)			(104	)			(70	)			49	%
Pretax Income			672				(874	)		NM					1,894				677			NM
Provision for Income Taxes			253				2			NM					710				579				23	%
Net Income		$	419				($876	)		NM				$	1,184			$	98			NM
Diluted Earnings Per Share		$	1.33				($2.82	)		NM				$	3.76			$	0.31			NM
Weighted Average Diluted Common and Common Equivalent Shares			316				311				2	%			314				312				1	%
Capital Expenditures		$	835			$	472				77	%		$	2,816			$	2,459				15	%
Average Full-Time Equivalents (000s)			248				239				4	%			245				248				(1	%)

FEDEX CORP. CONDENSED CONSOLIDATED BALANCE SHEETS

Fourth Quarter Fiscal 2010
(In millions)
(Unaudited)

		Year Ended
		May 31
		2010				2009
ASSETS
Current Assets
Cash and cash equivalents		$	1,952			$	2,292
Receivables, less allowances			4,163				3,391
Spare parts, supplies and fuel, less allowances			389				367
Deferred income taxes			529				511
Prepaid expenses and other			251				555
Total current assets			7,284				7,116
Property and Equipment, at Cost			31,302				29,260
Less accumulated depreciation and amortization			16,917				15,843
Net property and equipment			14,385				13,417
Other Long-Term Assets
Goodwill			2,200				2,229
Pension assets			—				311
Other assets			1,033				1,171
Total other long-term assets			3,233				3,711
		$	24,902			$	24,244
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
Current Liabilities
Current portion of long-term debt		$	262			$	653
Accrued salaries and employee benefits			1,146				861
Accounts payable			1,522				1,372
Accrued expenses			1,715				1,638
Total current liabilities			4,645				4,524
Long-Term Debt, Less Current Portion			1,668				1,930
Other Long-Term Liabilities
Deferred income taxes			891				1,071
Pension, postretirement healthcare and other benefit obligations			1,705				934
Self-insurance accruals			960				904
Deferred lease obligations			804				802
Deferred gains, principally related to aircraft transactions			267				289
Other liabilities			151				164
Total other long-term liabilities			4,778				4,164
Commitments and Contingencies
Common Stockholders’ Investment
Common stock, $0.10 par value, 800 million shares authorized			31				31
Additional paid-in capital			2,261				2,053
Retained earnings			13,966				12,919
Accumulated other comprehensive loss			(2,440	)			(1,373	)
Treasury stock, at cost			(7	)			(4	)
Total common stockholders’ investment			13,811				13,626
		$	24,902			$	24,244

FEDEX CORP. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS

Fourth Quarter Fiscal 2010
(In millions)
(Unaudited)

		Year Ended
		May 31
		2010				2009
Operating Activities:
Net income		$	1,184			$	98
Noncash charges:
Depreciation and amortization			1,958				1,975
Impairment and other charges			18				1,103
Other, net			556				579
Changes in operating assets and liabilities, net			(578	)			(1,002	)
Net cash provided by operating activities			3,138				2,753
Investing Activities:
Capital expenditures			(2,816	)			(2,459	)
Proceeds from asset dispositions and other			35				76
Net cash used in investing activities			(2,781	)			(2,383	)
Financing Activities:
Proceeds from debt issuance			—				1,000
Principal payments on debt			(653	)			(501	)
Dividends paid			(138	)			(137	)
Other, net			99				38
Net cash (used in) provided by financing activities			(692	)			400
Effect of exchange rate changes on cash			(5	)			(17	)
Net (decrease) increase in cash and cash equivalents			(340	)			753
Cash and cash equivalents at beginning of period			2,292				1,539
Cash and cash equivalents at end of period		$	1,952			$	2,292

FEDEX EXPRESS SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS

Fourth Quarter Fiscal 2010
(Dollars in millions)
(Unaudited)

		Three Months Ended												Twelve Months Ended
		May 31												May 31
		2010				2009				%				2010				2009				%
FINANCIAL HIGHLIGHTS
Revenue		$	5,877			$	4,797				23	%		$	21,555			$	22,364				(4	%)
Operating Expenses:
Salaries and employee benefits			2,187				1,965				11	%			8,402				8,217				2	%
Purchased transportation			347				241				44	%			1,177				1,112				6	%
Rentals and landing fees			399				393				2	%			1,577				1,613				(2	%)
Depreciation and amortization			259				240				8	%			1,016				961				6	%
Fuel			748				458				63	%			2,651				3,281				(19	%)
Maintenance and repairs			342				258				33	%			1,131				1,351				(16	%)
Impairment and other charges			—				260			NM					—				260			NM
Intercompany charges			504				508				(1	%)			1,940				2,103				(8	%)
Other			678				610				11	%			2,534				2,672				(5	%)
Total Operating Expenses			5,464				4,933				11	%			20,428				21,570				(5	%)
Operating Income/(Loss)		$	413				($136	)		NM				$	1,127			$	794				42	%
Operating Margin			7.0	%			(2.8	%)			9.8	pts			5.2	%			3.6	%			1.6	pts
OPERATING STATISTICS
Operating Weekdays			65				64				2	%			255				254				0	%
AVG DAILY VOLUME / POUNDS
Average Daily Package Volume (000s):
U.S. Overnight Box			1,156				1,144				1	%			1,157				1,127				3	%
U.S. Overnight Envelope			632				644				(2	%)			614				627				(2	%)
U.S. Deferred			843				829				2	%			867				849				2	%
Total U.S. Domestic Package			2,631				2,617				1	%			2,638				2,603				1	%
International Priority			560				456				23	%			523				475				10	%
International Domestic			323				289				12	%			318				298				7	%
Total Average Daily Packages			3,514				3,362				5	%			3,479				3,376				3	%
Average Daily Freight Pounds (000s):
U.S.			6,916				6,859				1	%			7,141				7,287				(2	%)
International Priority			2,889				1,715				68	%			2,544				1,959				30	%
International Airfreight			1,198				1,178				2	%			1,222				1,475				(17	%)
Total Avg Daily Freight Pounds			11,003				9,752				13	%			10,907				10,721				2	%
YIELD
Revenue Per Package:
U.S. Overnight Box		$	19.77			$	18.22				9	%		$	19.00			$	21.21				(10	%)
U.S. Overnight Envelope			10.64				10.15				5	%			10.47				11.65				(10	%)
U.S. Deferred			12.23				11.39				7	%			11.70				12.94				(10	%)
Total U.S. Domestic Package			15.16				14.07				8	%			14.61				16.21				(10	%)
International Priority			54.45				51.29				6	%			53.10				57.81				(8	%)
International Domestic			7.22				6.52				11	%			7.14				7.50				(5	%)
Composite Package Yield		$	20.69			$	18.47				12	%		$	19.72			$	21.30				(7	%)
Revenue Per Freight Pound:
U.S.		$	1.15			$	1.02				13	%		$	1.09			$	1.17				(7	%)
International Priority			2.09				2.01				4	%			2.01				2.22				(9	%)
International Airfreight			0.85				0.78				9	%			0.81				0.99				(18	%)
Composite Freight Yield		$	1.36			$	1.17				16	%		$	1.27			$	1.34				(5	%)
Average Full-Time Equivalents (000s)			129				125				3	%			128				128				—

FEDEX GROUND SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS

Fourth Quarter Fiscal 2010
(Dollars in millions)
(Unaudited)

		Three Months Ended												Twelve Months Ended
		May 31												May 31
		2010				2009				%				2010				2009				%
FINANCIAL HIGHLIGHTS
Revenue		$	1,962			$	1,704				15	%		$	7,439			$	7,047				6	%
Operating Expenses:
Salaries and employee benefits			299				278				8	%			1,158				1,102				5	%
Purchased transportation			769				677				14	%			2,966				2,918				2	%
Rentals			60				55				9	%			244				222				10	%
Depreciation and amortization			83				91				(9	%)			334				337				(1	%)
Fuel			2				1				100	%			8				9				(11	%)
Maintenance and repairs			47				38				24	%			166				147				13	%
Intercompany charges			208				172				21	%			795				710				12	%
Other			175				189				(7	%)			744				795				(6	%)
Total Operating Expenses			1,643				1,501				9	%			6,415				6,240				3	%
Operating Income		$	319			$	203				57	%		$	1,024			$	807				27	%
Operating Margin			16.3	%			11.9	%			4.4	pts			13.8	%			11.5	%			2.3	pts
OPERATING STATISTICS
Operating Weekdays			65				64				2	%			255				254				0	%
Average Daily Package Volume (000s)
FedEx Ground			3,516				3,297				7	%			3,523				3,404				3	%
FedEx SmartPost			1,150				934				23	%			1,222				827				48	%
Yield (Revenue Per Package)
FedEx Ground		$	8.04			$	7.63				5	%		$	7.73			$	7.70				0	%
FedEx SmartPost		$	1.63			$	1.54				6	%		$	1.56			$	1.81				(14	%)

FEDEX FREIGHT SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS

Fourth Quarter Fiscal 2010
(Dollars in millions)
(Unaudited)

		Three Months Ended												Twelve Months Ended
		May 31												May 31
		2010				2009				%				2010				2009				%
FINANCIAL HIGHLIGHTS
Revenue		$	1,231			$	948				30	%		$	4,321			$	4,415				(2	%)
Operating Expenses:
Salaries and employee benefits			576				512				13	%			2,128				2,247				(5	%)
Purchased transportation			213				105				103	%			690				540				28	%
Rentals			31				37				(16	%)			116				139				(17	%)
Depreciation and amortization			48				58				(17	%)			198				224				(12	%)
Fuel			135				81				67	%			445				520				(14	%)
Maintenance and repairs			43				36				19	%			148				153				(3	%)
Impairment and other charges			18				100				(82	%)			18				100				(82	%)
Intercompany charges1			102				29			NM					351				109			NM
Other			101				96				5	%			380				427				(11	%)
Total Operating Expenses			1,267				1,054				20	%			4,474				4,459				0	%
Operating Loss			($36	)			($106	)			66	%			($153	)			($44	)		NM
Operating Margin			(2.9	%)			(11.2	%)			8.3	pts			(3.5	%)			(1.0	%)			(2.5	pts)
OPERATING STATISTICS
LTL Operating Weekdays			65				64				2	%			253				252				0	%
LTL Shipments Per Day (000s)			91.5				68.4				34	%			82.3				74.4				11	%
Weight Per LTL Shipment (lbs)			1,160				1,119				4	%			1,134				1,126				1	%
LTL Revenue/CWT		$	16.69			$	17.78				(6	%)		$	17.07			$	19.07				(10	%)