Monday, July 18, 2005



Via Certified Mail

Mr. Mike Eskew
United Parcel Service
Chairman and Chief Executive Officer
UPS Corporate Headquarters
55 Glenlake Parkway NE
Atlanta, GA 30328

RE: The Brown Board Owners Association, Inc.

Dear Sir,

It is our intent and an integral part of our Mission Statement to represent the interests of The UPS Stores. With our stated objectives in mind, we felt compelled to inform you by way of this letter, of the concerns and issues as communicated to us by our membership stores, as well as our plans for alleviating the concerns and eliminating the issues.

A significant sampling of the stores indicates the following: many stores have had to close their doors or have been put up for sale, requiring in some cases that these owners file bankruptcy after losing their life savings. The store owners initially made their decisions based on forward looking statements made by you, as well as other UPS/MBE representatives, concerning the future growth potential of The UPS Store model, mainly The Gold Shield Program.

Over sixty percent of the network stores are losing money contrary to what is being stated by MBE and the Area Franchisees. Immediate relief is essential and our proposals consist of a short term as well as a long term plan.

Short term (To be posted on the member’s forum)

Long term (To be posted on the member’s forum)

Conversations with prominent financial analysts are of great interest to us. These analysts, who are aware of the problems that exist, predict that based on present performance, the entire UPS Store network will probably collapse within 1-2 years.

We request that any future agreements or modifications of set agreements not be made unilaterally as has been the policy of MBE. All modifications should include negotiations with the representatives of The UPS Stores namely, The Brown Board Owner’s Association.

Due to the urgency of the issues and concerns that we’ve discussed above, we request a meeting within a 30 day period with members of our board of directors at a venue of your choice.

Yours Truly,

The Board of Directors
The Brown Board Owner’s Association