FORT SMITH, Ark., Jan. 22 /PRNewswire-FirstCall/ -- Arkansas Best Corporation (Nasdaq: ABFS - news) today announced fourth quarter 2001 net income of $9.5 million, or $0.38 per diluted common share, compared to fourth quarter 2000 net income of $21.9 million, or $0.90 per diluted common share. For the full year of 2001, the company reported net income of $41.4 million, or $1.66 per diluted common share, versus 2000 net income of $76.2 million, or $3.17 per diluted common share. The fourth quarter and full-year earnings per share figures for 2001 include a non-recurring tax benefit of approximately $1.9 million ($0.08 per diluted common share) resulting from the resolution of certain tax contingencies originating in prior years. The fourth quarter and full-year earnings per share figures for 2000 include a net fair value gain on the Treadco/Wingfoot transaction of $0.12 per diluted common share.

"Arkansas Best generated solid results during what has been a very challenging year for our country, both from an economic standpoint and as we have faced direct attacks upon our democracy," said Robert A. Young III, Arkansas Best President and Chief Executive Officer. "During a period when our company has experienced some of the most significant business level declines in our history, we are proud of the solid earnings that were produced during 2001."

"I continue to be pleased with ABF's results in the current period of economic uncertainty. Despite experiencing tonnage and revenue levels considerably below those in the fourth quarter of 2000, ABF continued to keep its costs in line with available freight," said Mr. Young.

ABF Freight System, Inc.

During the fourth quarter, ABF's revenue was $302.0 million compared to $345.0 million in the fourth quarter of 2000. ABF's operating income during the current quarter was $16.5 million versus $32.8 million in the same period last year. Fourth quarter 2001 LTL tonnage per day declined 12.2% when compared to last year. LTL shipments per day in two-day transit time lanes declined 8.2% compared to an 11.5% shipment decrease in ABF's longer haul business.

Fourth quarter LTL revenue per hundredweight, excluding fuel surcharge, was $21.35, versus $20.99 during the fourth quarter of 2000. "As marketplace factors continue to exert pressure, ABF maintains focus on its historical philosophy of disciplined pricing. Though the current pricing environment is very competitive, it is still milder than we have seen in previous economic downturns," said Mr. Young.

"Throughout the 2001 fourth quarter, cost management continued to be the key to ABF's ability to operate so well during this difficult economic period," said Mr. Young. "As in previous quarters of 2001, ABF did a good job of matching labor costs to available business levels. At the same time, fourth quarter labor productivity at ABF's freight facilities and in its city pickup and delivery network improved over the same period in 2000. Maintaining this balance between costs and productivity, while developing new services and innovations for its customers, will continue to allow ABF to generate acceptable profits while waiting for our economy to grow again," said Mr. Young.

During the fourth quarter, ABF's Internet Web site was recognized twice as one of the leading sites in the world. In late November, ABF announced that it had been named again as a Web Business 50 Award(TM) winner. Sponsored by CIO magazine, this award places www.abf.com among the best 50 of all Web sites. ABF's Web site was one of only two on the Internet to win this award in both 2000 and 2001. In December, ABF was named a NetMarketing 200 award winner, with www.abf.com receiving the highest score of any LTL motor carrier Web site. This award is sponsored by BtoB magazine and ranks the best business-to-business Web sites through a detailed points system. "Since its inception, the focus of ABF's Web site has been to pioneer new technologies for the benefit of ABF's existing and prospective customers," said Mr. Young.

For the full year of 2001, ABF's revenue was $1.28 billion, a 7.0% per day decrease compared to last year. ABF's 2001 operating ratio was 93.8% versus 90.3% in 2000. ABF's 2001 operating income was $79.4 million versus $133.8 million during 2000. Total tonnage per day in 2001 decreased 7.7% compared to the previous year. In 2001, LTL tonnage per day decreased 9.3% from 2000 levels and truckload tonnage per day experienced a decline of 1.3% versus 2000.

"When compared to 2000, a period of favorable economic conditions, some people might consider ABF's 2001 results to be less than stellar. However, in many ways, ABF's performance during the adverse economic conditions of 2001 was more challenging and even more impressive than that of 2000," said Mr. Young. "I'm often asked how ABF will perform during a recession. I can now say that ABF's profitability during one of the most difficult operating environments in our history has produced numbers significantly better than those generated by the other national LTL companies during the best of economic times," said Mr. Young. "Once again, every employee of ABF should be proud of their part in helping our company attain this unique distinction."

Capital Expenditures

In 2002, Arkansas Best forecasts net capital expenditures to be approximately $45 million. Expenditures anticipated for 2002 are below last year's net capital expenditure total of $65 million due to existing business levels. However, in 2002, ABF will maintain its normal equipment replacement plan by making purchases of new tractors equating to approximately one-third of its road fleet.

Arkansas Best's depreciation and amortization for 2002 is forecasted to be approximately $48 million, which has been reduced by approximately $4.0 million of goodwill amortization as a result of new goodwill accounting rules that applied to Arkansas Best on January 1, 2002.

Credit Ratings Improvement

On Monday, January 14, Standard & Poor's upgraded Arkansas Best's corporate credit rating to BBB from BBB-. The upgrade represents a rise to a higher investment-grade rating. In their press release announcing these changes, Standard & Poor's stated that the rating upgrade reflects "Arkansas Best's relatively strong operating performance in the current difficult economic environment and the likelihood that operating performance will remain solid in 2002." In addition, Standard & Poor's release stated that Arkansas Best had "improved financial flexibility and bolstered equity" by conversion of preferred stock to common stock. Along with debt reduction, these events "have helped improve the company's credit profile."

Forbes Magazine Honor

For the second year in a row, Forbes magazine named Arkansas Best Corporation as one of The Platinum 400 Best Big Companies in America. In its January 7, 2002 issue, Arkansas Best was included as one of fourteen companies in the "Travel & Transport" industry sector. In addition, Arkansas Best was highlighted by Forbes as being one of the 23 Platinum 400 companies having posted the highest earnings-per-share growth rates in their respective industries. On a graph depicting percentage of EPS growth versus average P/E, Arkansas Best was shown to have a five-year average EPS growth of approximately 78% while having a five-year average P/E of approximately 12.

Outlook for 2002

"If current economic and general pricing conditions persist throughout 2002, with soft tonnage and relatively firm pricing discipline in the industry, Arkansas Best could continue to experience margins similar to 2001," said Mr. Young. "While those are not bad margins, they are certainly below our potential in a good economy. However, if the economy begins a recovery and tonnage increases during the year, Arkansas Best should experience significant operating leverage commensurate with the timing and extent of the business expansion."

Conference Call

Arkansas Best Corporation will host a conference call with company executives to discuss the company's 2001 fourth quarter and full-year results. The call will be today, Tuesday, January 22, at 10:00 a.m. CST. Interested parties are invited to listen by calling (888) 855-5487. Following the call, a recorded playback will be available through the end of the month. To listen to the playback, dial (888) 203-1112. The passcode for the playback is 446813. The live conference call and playback can also be accessed on Arkansas Best's Internet Web site at www.arkbest.com through Thursday, January 31.

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 QUARTER AND YEAR ENDED DECEMBER 31, 2001

                Three Months Ended December 31 Twelve Months Ended December 31
                   2001       2000  % Change      2001       2000  % Change

    Operating
     Revenue*   $ 301,969  $ 344,986 (12.5%)   $1,282,315  $1,379,280 (7.0)%
    Operating
     Income*    $  16,478  $  32,821           $   79,355  $  133,842
    Operating
     Ratio           94.5%      90.5%                93.8%       90.3%


                Three Months Ended December 31 Twelve Months Ended December 31
                       2001       2000 % Change      2001       2000  % Change
    Revenue*  LTL   $ 275,973 $ 312,698 (11.7)%  $1,168,191 $1,258,531  (7.2)%
              TL       25,996    32,288 (19.5)%     114,124    120,749  (5.5)%
              Total   301,969   344,986 (12.5)%   1,282,315  1,379,280  (7.0)%

    Tonnage   LTL     634,817   711,202 (10.7)%   2,701,195  2,977,760  (9.3)%
    (tons)    TL      160,552   194,694 (17.5)%     726,145    735,522  (1.3)%
              Total   795,369   905,896 (12.2)%   3,427,340  3,713,282  (7.7)%

    Shipments LTL   1,266,414 1,395,151  (9.2)%   5,349,557  5,915,310  (9.6)%
              TL       20,186    23,738 (15.0)%      89,896     91,806  (2.1)%
              Total 1,286,600 1,418,889  (9.3)%   5,439,453  6,007,116  (9.4)%

    Revenue/
     CWT      LTL   $   21.74 $   21.98  (1.1)%  $    21.62 $    21.13   2.3 %
              TL    $    8.10 $    8.29  (2.3)%  $     7.86 $     8.21  (4.3)%
              Total $   18.98 $   19.04  (0.3)%  $    18.71 $    18.57   0.8 %

    Revenue/
     Shipment Total $  234.70 $  243.14  (3.5)%  $   235.74 $   229.61   2.7 %

    Cost/
     Shipment Total $  221.90 $  220.01   0.9 %  $   221.15 $   207.33   6.7 %


    *Note:  Value rounded to thousands ($000)
     There were 62 workdays in the fourth quarter of 2001 and 61 workdays in
      the fourth quarter of 2000.
     Includes U.S., Canadian and Puerto Rican operations of ABF affiliates.


     Contact:  Mr. David E. Loeffler, Vice President, Chief Financial Officer
               and Treasurer
               Telephone: (479) 785-6157

               Mr. David Humphrey, Director of Investor Relations
               Telephone: (479) 785-6200