Ryder Resolves 1998-2000 Tax Audit, Pays $175M to IRS

Ryder System, Inc., a global leader in transportation and supply chain management solutions, today announced it has resolved all issues with the Internal Revenue Service (IRS) related to the 1998 to 2000 tax period.

In connection with the resolution of this audit, the Company expects to pay approximately $175 million (after offsets of available federal net operating losses and alternative minimum tax carry-forwards) in February 2005, plus interest from December 31, 2004 to the date of payment.

The amounts Ryder expects to pay are within the amounts previously accrued for the matters. Consequently, Ryder believes the resolution of these matters will have no adverse effect on shareholders' equity or results of operations. Additionally, Ryder believes it has not entered into any other transactions since 2000 that raise the same types of issues identified by the IRS audit of the 1998 to 2000 tax period.