FORT SMITH, Ark., July 19 -- Arkansas Best Corporation (Nasdaq: ABFS) today announced second quarter 2001 net income of $9.8 million, or $0.40 per diluted common share compared to second quarter 2000 net income of $17.7 million, or $0.74 per diluted common share. Arkansas Best's revenue for the 2001 second quarter was $407 million.

"In spite of the continued downturn in the economy, Arkansas Best Corporation produced good second quarter results," said Robert A. Young, III, Arkansas Best President and Chief Executive Officer. "ABF had strong profitability resulting in an operating ratio of 93.9%." said Mr. Young.

ABF Freight System, Inc.

Quarterly revenues at ABF were $325 million compared to $345 million during the second quarter of 2000. Year-to-date revenues were $650 million versus $677 million through the first six months of 2000. ABF's 93.9% second quarter operating ratio compares to 90.5% during the same period last year. Second quarter operating income at ABF was $19.9 million versus $32.6 million in 2000, a decline of 39%. LTL revenue per hundredweight, including fuel surcharge, was $21.35, an increase of 3.1% over the second quarter of 2000. "The LTL pricing environment remains relatively firm," said Mr. Young.

LTL tonnage per day during this year's second quarter decreased by 9.0% versus the same period last year. Truckload tonnage per day increased 4.4% over last year's second quarter. On a year-to-date basis, LTL tonnage per day has decreased 7.8% while truckload tonnage has increased 6.7%. Tonnage moving in two-day transit time lanes, which makes up approximately one quarter of ABF's shipments, continued to decline at a lower rate than that moving longer distances in ABF's system. Despite lower shipment levels, ABF maintained acceptable productivity.

"Considering the existing operating environment, ABF produced outstanding second quarter results," said Mr. Young. "During this period of significant declines in available freight, ABF continues to manage its wage and fringe costs very tightly, therefore keeping them in line with reduced business levels. Because it makes up approximately two-thirds of ABF's cost structure, labor is an important element that directly affects the bottom line. ABF intently manages these costs in response to daily changes in freight volume."

"In addition to implementing cost controls, ABF continues to emphasize the addition of truckload shipments in selected freight lanes. These shipments provide additional revenues and freight to support the over-the-road network, thus allowing ABF to maintain its established road driver operation. When the core LTL business resumes its normal level of growth, ABF has the ability to quickly and easily reduce the amount of truckload business it solicits," said Mr. Young.

"ABF maintains a nationwide infrastructure similar to that of its LTL industry peers. With half the revenue base of its competitors, ABF's fixed cost percentage is therefore higher, on a relative basis. Higher fixed costs can have a greater negative impact on the operating ratio during periods of business declines but will also provide higher earnings leverage as business levels begin to increase," said Mr. Young.

Forward-Looking Statements

The following is a "safe harbor" statement under the Private Securities Litigation Reform Act of 1995: Statements contained in this press release that are not based on historical facts are "forward-looking statements." Terms such as "estimate," "expect," "predict," "plan," "anticipate," "believe," "intend," "should," "would," "scheduled," and similar expressions and the negatives of such terms are intended to identify forward-looking statements. Such statements are by their nature subject to uncertainties and risk, including but not limited to union relations; availability and cost of capital; shifts in market demand; weather conditions; the performance and needs of industries served by Arkansas Best's subsidiaries; 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; the timing and amount of capital expenditures; competitive initiatives and pricing pressures; general economic conditions; and other financial, operational and legal risks and uncertainties detailed from time to time in the Company's SEC public filings.

 
     ABF FREIGHT SYSTEM, INC.
     COMBINED FINANCIAL INFORMATION
     FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2001

                          Three Months Ended June 30  Six Months Ended June 30
                           2001    2000    % Change   2001     2000    %Change

    Operating Revenue*  $324,836  $344,671  (5.8)%  $650,349  $676,507  (3.9)%
    Operating Income*   $ 19,868  $ 32,622          $ 40,819  $ 59,863
    Operating Ratio         93.9%     90.5%             93.7%     91.2%


                      Three Months Ended June 30     Six Months Ended June 30
                        2001      2000   %Change     2001       2000   %Change
    Revenue*  LTL    $295,805   $314,954  (6.1)%   $591,226   $617,890  (4.3)%
              TL       29,031     29,717  (2.3)%     59,123     58,617   0.9%
              Total   324,836    344,671  (5.8)%    650,349    676,507  (3.9)%

    Tonnage   LTL     692,627    760,879  (9.0)%  1,382,388  1,510,796  (8.5)%
    (tons)    TL      190,974    182,975   4.4 %    386,216    364,832   5.9 %
              Total   883,601    943,854  (6.4)%  1,768,604  1,875,628  (5.7)%

    Shipments LTL   1,372,270  1,520,758  (9.8)%  2,726,145  3,004,945  (9.3)%
              TL       23,433     23,050   1.7 %     47,458     45,984   3.2 %
              Total 1,395,703  1,543,808  (9.6)%  2,773,603  3,050,929  (9.1)%

    Revenue/
     CWT      LTL    $  21.35   $  20.70   3.1 %   $  21.38   $  20.45   4.5 %
              TL     $   7.60   $   8.12  (6.4)%   $   7.65   $   8.03  (4.7)%
              Total  $  18.38   $  18.26   0.7 %   $  18.39   $  18.03   2.0 %

    Revenue /
     Shipment Total  $ 232.74   $ 223.26   4.2 %   $ 234.48   $ 221.74   5.7 %

    Cost /
     Shipment Total  $ 218.50   $ 202.13   8.1 %   $ 219.76   $ 202.12   8.7 %

    *Note:  Values rounded to thousands ($000)
            There were 64 workdays in the second quarter of 2001 and in the
            second quarter of 2000.
            Includes U.S., Canadian and Puerto Rican operations of ABF
            affiliates.