Exhibit 99.1

                                                           FOR IMMEDIATE RELEASE


              FedEx Corp. Updates Fourth Quarter Earnings Outlook
              Continued Economic Weakness Affects Shipment Demand

MEMPHIS, Tenn., May 7, 2001 ... FedEx Corporation (NYSE: FDX) today announced
that earnings for the fourth quarter ended May 31 are expected to be in the
range of $0.50 to $0.60 per share, compared to $0.85 per share last year.

"Deteriorating economic conditions and the rapid decline in the high-tech and
other durable goods industries have increasingly affected FedEx Express
volumes," said Alan B. Graf, Jr., executive vice president and chief financial
officer. "In April, U.S. domestic average daily volume at FedEx Express
declined 9% year-over-year. Additionally, the growth rate of FedEx
International Priority shipments slowed to 1% year-over-year. FedEx Ground
package volume grew about 5%, while package yields at both FedEx Express and
FedEx Ground continue to show solid growth. We expect the economic softness to
continue into our fiscal 2002, which begins June 1, 2001. Although we are
taking steps to substantially reduce expense and capital spending, we
nonetheless expect our first quarter earnings will be significantly below last
year's $0.58 per share."

With annual revenues of $20 billion, FedEx Corp. is the premier global provider
of transportation, e-commerce and supply chain management services. The company
offers integrated business solutions through a network of subsidiaries
operating independently, including: FedEx Express, the world's largest express
transportation company; FedEx Ground, North America's second largest provider


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of small-package ground delivery service; FedEx Freight, a leading provider of
regional less-than-truckload freight services; FedEx Custom Critical, the
world's largest provider of expedited time-critical shipments; and FedEx Trade
Networks, a provider of customs brokerage, consulting, information technology
and trade facilitation solutions.


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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 and competitive
conditions in the markets we serve, matching capacity to 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:  Shirlee Clark 901-818-7463
Investor Contact:  Jim Clippard 901-818-7468
Worldwide Web Home Page:  www.fedex.com







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