SUBJECT:  Federal Express Class Action Suit

We have been advised that many departments have received a Notice of Proposed Settlement from the Plaintiffs and a Proof of Claim Form to Settlement Class Members from the Circuit Court of Cook County, Illinois.

These documents pertain to a class action suit naming entities who made one or more U.S. domestic shipments through Federal Express Corporation (Fed Ex) from February 3, 1997 through June 30, 1997 (the "Class Period") and whose paid transportation charges for such shipments included a 2% fuel charge.

In a class action suit, communication must be provided to the potential settlement class members and that is why you might have received these documents. As UC has a contract with Fed Ex, we are conferring with the Office of the President on guidelines for UCSD and there is no need for departments to take any action.

Please refer any questions to Alberto Castaneda at acastaneda@ucsd.edu or phone at (858) 534-0527.

                                                Don Larson
                                                Controller/
                                                Assistant Vice Chancellor -
                                                Business and Financial Services