(Fort Smith, Arkansas, October 20, 1998) -- Arkansas Best Corporation today reported net income of $8.1 million, or $0.34 per diluted share, for the 1998 third quarter. This compares to net income from continuing operations of $9.3 million, or $0.39 per diluted share, for the third quarter of 1997. Results of the 1997 third quarter included an estimated $0.08 in non-recurring income including benefits from additional freight handled as a result of the August 1997 UPS strike (estimated at $0.04 per diluted share) and a gain on the sale of Cardinal Freight Carriers, Inc. that, combined with the write-downs of real estate held for sale, equaled $0.04 per share. For the nine months of 1998, Arkansas Best earned $19.1 million, or $0.80 per diluted common share, an increase of 18.6% over 1997 earnings through the first nine months from continuing operations of $16.1 million or $0.65 per diluted common share.

"ABF Freight System, Inc. had an excellent quarter with good operating margins," said Robert A. Young III, President and Chief Executive Officer. "ABF continues to set the profitability standard for the longhaul, LTL industry."

. . .

"With a 1998 third quarter operating ratio of 93.5%, ABF virtually duplicated the strong performance of the third quarter of 1997 when its operating ratio was 93.4%," said Mr. Young. "Operating income of $19.5 million during the quarter was the result of a generally favorable rate environment combined with ABF's on-going attention to the control of operating costs."

When adjusted for differences brought on by the Fourth of July holiday falling on the weekend and for an estimate of the additional business handled during the UPS strike, ABF's total tonnage per day during the third quarter of 1998 was down 1.2%, consisting of a 1.2% decline in LTL tonnage and a 1.3% reduction in truckload tonnage. After removing the additional freight handled as a result of the UPS strike from third quarter 1997 figures, 1998's third quarter LTL revenue per hundredweight of $18.24 represents an increase of 4.2%. During the third quarter, the productivity of ABF's workforce continued at the favorable levels that were achieved during the first half of the year.

"Though revenues and tonnages are somewhat below our expectations, ABF continues to lead its industry in operating margins," said Mr. Young. "This quarter's strong operating ratio shows that ABF's management team has the operational discipline necessary to maintain acceptable margins during a period of reduced business levels."

. . .

The foregoing release contains forward-looking statements that are based on current expectations and are subject to a number of risks and uncertainties. Actual results could differ materially from current expectations due to a number of factors, including general economic conditions; competitive initiatives and pricing pressures; union relations; availability and cost of capital; shifts in market demand; weather conditions; the performance and needs of industries served by Arkansas Best's businesses; actual future costs of operating expenses such as fuel and related taxes; self-insurance claims and employee wages and benefits; actual costs of continuing investments in technology; and the timing and amount of capital expenditures.

      ABF FREIGHT SYSTEM, INC.
      COMBINED FINANCIAL INFORMATION
      FOR THE QUARTER ENDED SEPTEMBER 30, 1998
      ---------------------------------------------------------------------------------
                                   Third Quarter                   Nine Months
                           1998         1997  % Change      1998      1997    % Change
                          -------------------------------------------------------------

      Operating Revenue** $302,985  $302,296    0.2%     $877,084  $ 863,253    1.6%
      Operating Income**  $ 19,547  $ 20,022             $ 48,016  $  48,875
      Operating Ratio        93.5%     93.4%                94.5%      94.3%
 

 
                                   Third Quarter                 Third 
                                                                Quarter        1998
                           1998         1997   % Change           1997       % change
                                                                w/out UPS    w/out UPS
                          -------------------------------------------------------------
      Revenue**   LTL   $ 274,818   $ 273,748     0.4 %        $ 266,948        2.9 %
                   TL      28,167      28,548    (1.3)%           28,548       (1.3)%
                Total   $ 302,985   $ 302,296     0.2 %        $ 295,496        2.5 %


      Tonnage**   LTL     753,299     770,537    (2.2)%          762,620       (1.2)%
                   TL     190,303     192,900    (1.3)%          192,900       (1.3)%
                Total     943,602     963,437    (2.1)%          955,520       (1.2)%


      Shipments   LTL   1,492,960   1,614,174    (7.5)%        1,522,419       (1.9)%
                   TL      23,914      24,258    (1.4)%           24,258       (1.4)%
                Total   1,516,874   1,638,432    (7.4)%        1,546,677       (1.9)%


       Revenue/    LTL    $ 18.24      $ 17.76     2.7 %          $ 17.50         4.2%
        CWT         TL       7.40         7.40     0.0 %             7.40         0.0%
                 Total      16.05        15.69     2.3 %            15.46         3.8%


      Revenue/
      Shipment  Total   $ 199.74     $ 184.50     8.3 %         $ 191.05         4.5%

      Cost/
      Shipment  Total   $ 186.86     $ 172.28     8.5 %                -           -