(FORT SMITH, Arkansas, October 20, 2003) -- Arkansas Best Corporation (Nasdaq: ABFS) today announced third quarter 2003 net income of $17.0 million, or $0.67 per diluted common share. For the third quarter of 2002, net income was $18.3 million, or $0.73 per diluted common share. Excluding three items of note, third quarter 2002 earnings were $0.54 per diluted common share. The three items of note during the third quarter of 2002 included: an earnings increase of $0.12 per diluted common share related to a favorable settlement with the Internal Revenue Service, an earnings increase of $0.09 per diluted common share associated with the after-tax gains on sales of excess freight facilities at ABF^® and an earnings decrease of $0.02 per diluted common share relating to increased liability reserves associated with the liquidation of an insurer who provides excess workers’ compensation insurance for claims that arose from 1993 through 1999. Arkansas Best’s revenue, during the third quarter of 2003, was $402.9 million, an increase of 7.3% over the third quarter of 2002.

ABF Freight System, Inc.^®

ABF Freight System, the company’s largest subsidiary, had third quarter 2003 revenue of $360.6 million, a per-day increase of 7.5% compared to third quarter 2002 revenue of $335.5 million. ABF’s third quarter 2003 operating ratio was 91.9% versus an operating ratio of 92.9% during the third quarter of 2002. This year’s third quarter operating ratio at ABF was the third best for any third quarter in the last twenty-five years. Billed LTL revenue per hundredweight, including fuel surcharge, was $24.39, an increase of 6.5% over last year’s third quarter figure of $22.91. Billed LTL revenue per hundredweight, excluding fuel surcharge, was $23.60, an increase of 5.4% over last year’s third quarter figure of $22.39. Approximately one-half of the yield increase, excluding fuel surcharge, was a result of changes in the freight profile since the early September 2002 demise of Consolidated Freightways (CF). “We remain encouraged by the positive pricing environment currently experienced by our industry,” said Robert A. Young III, Arkansas Best President and Chief Executive Officer. “ABF’s increases on contracts and deferred pricing agreements continue to be favorable by historical standards and retention of the July 14 general rate increase has been good.”

ABF’s third quarter LTL tonnage per day increased 0.5% compared to the same period last year. Versus the second quarter of 2003, ABF’s third quarter LTL tonnage per day increased 2.8%. “ABF’s sequential LTL tonnage change compared to this year’s second quarter was in line with expected changes given normal seasonal trends from the second quarter to the third quarter,” said Mr. Young. Comparisons of third quarter 2003 LTL tonnage to the same figures in the third quarter of 2002 include additional business in September of both years associated with CF’s closing. “Our business does not yet reflect much of a change in the overall economy of our country. I continue to be encouraged about the positive signs and comments from others regarding the improving economic environment. If the economy does improve, this should eventually translate into more business for ABF. Regardless of economic conditions, ABF will continue to emphasize excellent customer service while managing costs to provide superior value to its customers,” said Mr. Young.

“ABF’s third quarter operating ratio of 91.9% compares very favorably to this year’s second quarter operating ratio of 95.7%,” said Mr. Young. “This was due, primarily, to yield improvements but also reflects some positive operational effects from seasonal increases in tonnage and revenue without the addition of an equivalent amount of costs.”

“Productivity measures at ABF were slightly below levels for the same period last year. These figures continue to be affected by additional shipment handling related to ABF’s concentration on transit time improvements and premium services provided at pickup and delivery,” said Mr. Young. “These measures were the same as in the second quarter of this year.”

Recognition of Excellence at ABF

Continuing its long pattern of recognition for superior industry achievement, ABF and its employees were recently recognized with two more prestigious safety awards. In mid-September, the American Trucking Associations (ATA) named ABF as the winner of its 2003 President’s Trophy for safety. This is the highest safety award in the motor carrier industry. ABF is the only carrier to have won this award five times.

Earlier this month, the ATA also named Jim McFarlin, director of safety and security for ABF, as the 2003 Safety Director of the Year. This award is presented annually to the motor carrier safety executive whose professional qualifications, safety programs and achievements are considered outstanding. Jim also won the Outstanding Service Award for safety in 2000. “Safety is a very high priority at ABF. It is gratifying to have our employees and safety programs continue to be recognized as the very best in the trucking industry,” said Mr. Young.    

ABF’s Redesigned Web Site

In early August, ABF announced the launch of its re-engineered Web site at abf.com which offers a simpler graphical interface, streamlined applications and industry-first advances in automated personalization. This new design allows for the matching of the most relevant online tools and shipment information to the specific site user.

Common Stock Purchase

During the third quarter of 2003, Arkansas Best did not make any open market purchases of its common stock. In total, as a part of Arkansas Best’s previously announced program to repurchase up to a maximum of $25 million of its common stock, the company has purchased 200,000 shares totaling $4.8 million during 2003.

Credit Agreement Extension

As previously reported, as of Friday, September 26, 2003, Arkansas Best amended and restated its existing $225 million Credit Agreement. The agreement was extended for two years and is now scheduled to mature on May 15, 2007. Arkansas Best continues to have a strong balance sheet and closed the third quarter with total debt below $20 million.  

Conference Call

Arkansas Best Corporation will host a conference call with company executives to discuss the 2003 third quarter results. The call will be today, Monday, October 20, at 11:00 a.m. EDT (10:00 a.m. CDT). Interested parties are invited to listen by calling (877) 275-1257. Following the call, a recorded playback will be available through the end of October. To listen to the playback, dial (800) 642-1687. The conference call ID for the playback is 3083550. The conference call and playback can also be accessed, through Friday, October 31, on Arkansas Best’s Web site at www.arkbest.com.

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,” “forecast,” “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 Securities and Exchange Commission (“SEC”) public filings.

The following table shows financial data for ABF Freight System, Inc.

ABF FREIGHT SYSTEM, INC.^®
OPERATING STATISTICS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2003

  *  Billed Revenue does not include revenue deferral required for financial statement purposes under the Company’s revenue recognition policy. Prior to the third quarter 2002, the Company reported revenue-per-hundredweight statistics using financial statement revenue recognized on a relative transit time basis.
**  LTL and total shipment counts for the nine months ended September 30, 2002 reflect the correction of an insignificant reporting error that appeared in the second quarter 2002.

There were 64 workdays in the three months ended September 30, 2003 and in the three months ended September 30, 2002.
There were 191 workdays in the nine months ended September 30, 2003 and in the nine months ended September 30, 2002.

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