EXHIBIT 99.1

Contacts:
FedEx Media Relations
(901) 295-5007

                      For Immediate Release

     FedEx to Acquire Caliber System, Inc. Including RPS
     Subsidiary A Powerful Combination in the Transportation
     and Logistics Industry

     Memphis, Tennessee, (October 6, 1997) Federal Express Corp.
and Caliber System, Inc. jointly announced today that their
respective boards of directors have approved a transaction in
which FDX Corporation, a new holding company to be formed as part
of the transaction, will acquire Caliber System, Inc. and its
subsidiaries, including package carrier RPS, Inc. The parties
signed a definitive agreement yesterday, which is subject to a
number of conditions, including approval by the stockholders of
both Federal Express Corporation and Caliber System, Inc., and
the U.S. Government.

     "This acquisition creates a powerful combination that will
propel both companies to new heights. Customers will now have a
broader portfolio of services unmatched by any competitor," said
Frederick W. Smith, chairman, president and chief executive
officer of Federal Express Corp.

     "This transaction is a perfect fit at the right time for
Caliber System", said Daniel J. Sullivan, chairman, president and
chief executive officer of Caliber System, Inc. "Our
cost-competitive, reliable service in the nonexpress market and
use of leading edge information systems will complement the FedEx
brand."

     The agreement provides that Caliber System shareholders will
receive 0.8 shares of FDX Corporation stock in exchange for each
share of Caliber System stock that they own. The transaction,
which is expected to close in early 1998, will be tax-free to the
shareholders of both companies and will be accounted for under
the "pooling of interests" method for business combinations.

     FDX Corporation will become a $15 billion powerhouse in
global transportation and logistics. With two independent
networks serving the express and non-express markets through five
distinct business units, FDX Corporation will be able to offer:







o    fast, reliable and time-definite express delivery;
o    expedited surface delivery of critical freight-
     shipments;
o    business-to-business non-express delivery of packages;
o    regional less-than-truckload (LTL) freight service; and
o    information and logistics solutions

Each business unit will be managed and operated separately to
achieve maximum productivity and superior customer service.

     "Although the express and non-express networks will function
independently, the synergistic effect should boost volumes for
both businesses," said Smith. "Customers recognize that
distribution and logistics are becoming strategic weapons to cut
costs and to improve quality, productivity, and customer
satisfaction. With the addition of Caliber System, FDX
Corporation will be best positioned to provide such broad-based
supply chain solutions to companies both large and small."

     Smith will serve as chairman, president and chief executive
officer of the new holding company and Alan B. Graf, Jr. and
Kenneth R. Masterson will serve as executive vice presidents.
Sullivan will serve as president and chief executive officer of
RPS, Inc. Ted Weise, a 25-year veteran of Federal Express, will
become president and chief executive officer of Federal Express.

     The newly formed FDX Corporation companies will employ
approximately 170,000 people worldwide. Caliber System, Inc.
headquarters in Akron, Ohio will close, and the 150 employees
there will be offered positions at FDX Corporation or a
subsidiary. Employees who do not accept such positions will be
offered a severance package.

     Federal Express connects areas that generate 90% of the
world's gross domestic product in 24-48 hours with door-to-door,
customs-cleared service backed by a money-back guarantee. The
company's unmatched air route authorities and infrastructure make
it the world's largest express transportation company, providing
fast and reliable services for 2.9 million items in 212 countries
each working day. The company employees approximately 137,000
people and has more than 42,500 drop-off locations, 590 aircraft
and 38,500 vehicles in its integrated global network. FedEx
maintains electronic connections with more than 750,000 customers
via FedEx Powership(R), FedEx Ship(R) and FedEx interNetShip(sm).
Federal Express reported revenues of $11.5 billion for its fiscal
year ended May 31, 1997.






     Caliber System, Inc., with 33,500 employees and contractors
and 500 facilities worldwide, is a leading provider of
value-added transportation, logistics and related information
services. Its operating companies include RPS, Inc., a
business-to-business non-express package carrier; Viking Freight,
Inc., a supplier of regional freight service in the West; Caliber
Logistics, Inc., a contract logistics provider; Roberts Express,
Inc., a critical-shipment carrier; and Caliber Technology, Inc.,
a producer of system-wide information services. Caliber System,
Inc. reported revenues of $2.7 billion for the year ended
December 31, 1996.

     Federal Express is being advised in this transaction by
Merrill Lynch & Co.  Caliber System, Inc. is being advised
by Goldman, Sachs & Co.