ABF Press Release - Significant Improvement in Second Quarter 1997

Excerpts from the Arkansas Best Corporation Second Quarter 1997 Release

(Fort Smith, Arkansas, July 24, 1997) -Arkansas Best Corporation completed its return to profitability in the second quarter of 1997 by reporting net income of $5.0 million, or $0.20 per common share versus a net loss of $8.8 million, or $0.51 per common share for the second quarter of 1996. Second quarter 1997 net income included pre-tax losses on the disposal of excess real estate amounting to $973,000, which reduced earnings per common share by $0.03.

Arkansas Best had operating income of $18.5 million (95.7% operating ratio) for the second quarter of 1997 compared to an operating loss of $5.7 million (101.4% operating ratio) in the second quarter of 1996. ABF Freight System, Inc., Arkansas Best's largest subsidiary, had an operating ratio of 94.0% for the second quarter of 1997, ABF's best second quarter operating ratio since 1990. Year-to-date, Arkansas Best reported net income of $4.7 million, or $0.13 per common share, versus a net loss of $18.3 million, or a loss of $1.05 per common share, for the first six months of 1996.

ABF Freight System, Inc.

"Second quarter results further substantiated ABF's return to historical levels of profitability. ABF had an operating ratio of 94.0% for the second quarter compared to a 101.9% operating ratio for the second quarter of 1996," said Robert A. Young, III, Arkansas Best President and Chief Executive Officer.

ABF's emphasis on account profitability resulted in lower tonnage numbers for the second quarter. Holding the line on current pricing and emphasizing profitability resulted in an increase in LTL revenue per hundredweight to $17.20 for the second quarter of 1997, a 7.4% increase from the second quarter of 1996. The increase in revenue per hundredweight offset the decrease in tonnage allowing ABF's revenue per day to increase 2.5%. Total revenue per shipment increased 6.5%. ABF's 1997 second quarter tonnage per day decreased 5.0%, consisting of a 4.0% decrease in LTL tonnage and a 8.7% truckload tonnage decrease compared to last year's second quarter. Cost reduction efforts initiated in 1996 and continuing in 1997 to lower ABF's breakeven point and continually improve operating efficiencies have resulted in a reduction in cost per shipment of 1.9%.

. . .

Arkansas Best Debt Reduction

Arkansas Best reduced long-term debt by $99 million during the first six and a half months of 1997, including $35 million in net proceeds from the sale of Cardinal. In the last 18 � months, long-term debt has been reduced by $159 million from $426 million to $267 million.

. . .

ARKANSAS BEST CORPORATION

SELECTED OPERATING AND FINANCIAL INFORMATION (Unaudited)

Three Months Ended
June 30 Six Months Ended
June 30

1997 1996 % Change 1997 1996 % Change

($ thousands, except per share data)

Operating Revenue $282,010 $275,028 2.5% $551,254 $548,781 0.5%

Operating Income $16,903 $(5,355) $28,164 $(11,583)

Operating Ratio 94.0% 101.9% 94.9% 102.1%

For The Quarter Ended
June 30

1997 1996 % Change

($ thousands)

Revenue LTL $254,860 $247,103 3.1 %

TL 27,150 27,925 (2.8)%

Total 282,010 275,028 2.5 %

Tonnage LTL 740,744 771,580 (4.0)%

TL 190,340 208,387 (8.7)%

Total 931,084 979,967 (5.0)%

Revenue/CWT LTL $17.20 $16.01 7.4 %

TL 6.70 6.70 6.4 %

Revenue/Shipment Total $188.90 $177.39 6.5 %

Cost/Shipment Total $177.70 $181.12 (1.9)%

1) Note: Sixty-four workdays in second quarter 1997 and second quarter 1996.

END OF RELEASE