MILWAUKEE, WISCONSIN, AUGUST 4, 2003 --- HK Systems, Inc., a leading automated material handling and supply chain total solutions provider, announced today that it has been selected by FedEx Ground, an operating unit of FedEx Corporation (NYSE: FDX), to develop and install the package sortation systems in four new central distribution hubs that will begin construction over the next year. HK Systems will apply its world-class engineering and integration capabilities to implement the fast-growing small package ground delivery company's "third generation" automated hub design in its new facilities, which include Hagerstown, Maryland; Cincinnati, Ohio; and Dallas, Texas. The new design will benefit FedEx Ground and its customers by increasing efficiency and productivity, enhancing information availability, and reducing operating costs. "HK Systems looks forward to providing engineering integration for these new hubs, enhancing the most advanced material handling and scanning technology available, and increasing the competitive advantage of FedEx Ground," stated John W. Splude, HK Systems' Chairman and Chief Executive Officer. "We are honored to have been selected by FedEx Ground and welcome the opportunity to contribute to their expansion plan." In September, in response to strong customer demand, FedEx Ground announced a six-year, $1.8 billion expansion plan that will add 10 new hubs and expand 23 existing hubs within its distribution network. The plan will nearly double average daily package capacity from 2.5 million to 4.8 million by 2009. FedEx Ground's President and Chief Executive Officer Daniel J. Sullivan said, "To meet the demands of this aggressive plan, it was essential that our team choose an experienced integrator with a deep bench of qualified professionals and a flexible, focused approach." Sullivan continued, "Based on these criteria, we are confident HK Systems will help us continuously improve our operations and better serve our customers."