(Fort Smith, Arkansas, April 21, 2004) — Arkansas Best Corporation (Nasdaq: ABFS) today announced first quarter 2004 net income of $4.5 million, or $0.18 per diluted common share.  During the first quarter of 2003, the company reported a net loss of $734,000, or $0.03 per common share, which included a $9.0 million pre-tax ($0.22 per common share) charge related to Arkansas Best’s interest rate swap.  Excluding this charge, first quarter 2003 earnings were $0.19 per common share.

ABF Freight System, Inc.^®

ABF’s revenue during the first quarter of 2004 was $346.1 million, a per-day increase of 3.0% compared to first quarter 2003 revenue of $330.8 million.  These figures reflect a revenue reclassification in both years, which is discussed below.  First quarter 2004 operating income at ABF^® was $8.7 million compared to $11.1 million during the first quarter of 2003.  ABF’s first quarter 2004 operating ratio was 97.5% versus an operating ratio of 96.6% during the first quarter of 2003.  “Because of low business levels in January and February, ABF’s normal cost increases had a greater impact on first quarter margins,” said Robert A. Young III, Arkansas Best President and Chief Executive Officer.  “March’s average LTL daily tonnage was approximately 10% above that in January and over 4% above that in February.  The availability of additional business in March translated into a significant improvement in ABF’s bottom-line results over January and February.”

ABF’s LTL tonnage per day increased slightly by 0.3% during the first three months of 2004 compared to the same period last year.  “Looking at the individual months of this year’s first quarter, profitability improvements were consistent with positive changes in business.

During January, when LTL tonnage per day was 2.3% below last year, ABF’s operating ratio was 101.5%.  In February, when LTL tonnage levels increased 1.4% over last year, ABF’s operating ratio improved to 97.9%.  In March, when daily LTL tonnage was 1.3% better than March 2003, ABF’s 93.7% operating ratio reflected further margin improvement,” said Mr. Young.

“Through the first nineteen days of April, average daily tonnage figures in our core LTL business are approximately 5% higher than the comparable period last year.  We are encouraged by the positive tonnage pattern ABF is experiencing so far in the second quarter,” said Mr. Young.

Billed LTL revenue per hundredweight, excluding fuel surcharge, was $23.47, an increase of 2.0% over last year’s first quarter figure of $23.02.  Yield comparisons with last year’s first quarter are affected by freight profile differences.  Shipments added in the first quarter of 2003 as a result of the September 2002 closure of Consolidated Freightways were generally smaller and moved longer distances.  These profile characteristics increased ABF’s first quarter 2003 yields.  Growth in average shipment size and a reduction in length of haul caused some decline in first quarter 2004 revenue per hundredweight.  Without these profile changes, ABF’s first quarter billed LTL revenue per hundredweight, excluding fuel surcharge, increased by 2.4% over first quarter last year.

ABF’s truckload tonnage per day improved by 10.0% during the first quarter when compared to last year. “The number of larger shipments increased during the first quarter, as the federal Hours of Service Regulations prompted the move of these shipments from truckload carriers. In addition, during the first half of the quarter, ABF was more active in the volume spot market in an attempt to increase capacity utilization to offset seasonally soft business levels.  ABF did benefit from handling these additional truckload shipments.  However, the competitive pricing necessary to obtain these one-time shipments produced margins that were below those of ABF’s normal business. As a result, ABF’s overall first quarter operating ratio increased,” said Mr. Young. “As LTL tonnage trends improved during the second half of the quarter, ABF was more selective in the spot quotation market, increasing prices and margins. As seasonal LTL business levels continue to increase in the coming months, ABF should continue to see improved margins on these volume shipments.” 

ABF is in the midst of an ongoing initiative to reduce transit-time delivery standards and to further improve the on-time reliability of transit-time service to its customers.  To accomplish this goal, technology is being utilized to improve the focus of ABF’s system resources. So far, this activity has resulted in a year-over-year reduction of shipment deliveries not meeting ABF’s transit-time standards by nearly one half.  “The operational focus associated with these improved services has increased ABF’s costs, though they are difficult to quantify because they affect so many areas of ABF’s operation. However, these changes are being made to provide better, more reliable transit times for our customers,” said Mr. Young. “In addition, ABF believes these changes will generate future opportunities for new revenue growth.”

Depreciation expenses were above last year’s first quarter by approximately $1.1 million. Approximately $870,000 of the additional depreciation costs were associated with new trailers and with road tractors converted to city tractors, both of which were replacements for older equipment. Arkansas Best previously disclosed an expected additional increase in first quarter 2004 depreciation of approximately $750,000 due to the downward adjustment of equipment salvage values. Because of improvements in the market for equipment values, first quarter 2004 depreciation cost increases related to salvage value reductions are only $250,000. 

First quarter productivity measures at ABF, on a bills-per-hour basis, were below those seen during the first quarter of 2003. “However, the first quarter weight-per-shipment increase reduced the bills-per-hour productivity measure of ABF’s workforce. On a weight-per-hour basis, which is a better measure considering the profile change, productivity improved by 1.6%,” said Mr. Young.

ABF Revenue Reclassification

First quarter 2004 revenue includes the effect of a reclassification to record revenue associated with certain shipments where ABF utilizes a third-party carrier for pickup or delivery. The same reclassification has been made for first quarter 2003. This applies to shipments where ABF retains the primary obligation to provide services to the customer and where ABF maintains the responsibility for collection of accounts receivable and handling of cargo claims. This revenue will now be recorded on a gross basis, with expenses paid to the third-party carrier recorded in the “purchased transportation” category, rather than on a net basis where the expense of the third-party carrier is netted against revenue. This reclassification increases ABF’s revenue by nearly two percent, has no impact on ABF’s operating income and a minimal impact on ABF’s operating ratio.

Conference Call

Arkansas Best Corporation will host a conference call with company executives to discuss the 2004 first quarter results. The call will be today, Wednesday, April 21, 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 Friday, April 30. To listen to the playback, dial (800) 642-1687. The conference call ID for the playback is 6652666. The conference call and playback can also be accessed, through April 30, on Arkansas Best’s Internet Web site at www.arkbest.com.

Company Description

Arkansas Best Corporation, headquartered in Fort Smith, Arkansas, is a diversified transportation holding company with two primary operating subsidiaries. ABF Freight System, Inc., in continuous service since 1923, provides national transportation of less-than-truckload (“LTL”) general commodities throughout North America. Clipper is an intermodal marketing company that provides domestic freight services utilizing rail and over-the-road transportation.

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

		Three Months Ended March 31
		2004	2003	% Change
Billed Revenue*/CWT	LTL	$       24.52	$     24.07	1.9%
	TL	$         8.77	$       8.53	2.8%
	Total	$       21.40	$     21.21	0.9%
Billed Revenue*/CWT	LTL	$       23.47	$     23.02	2.0%
(w/o FSC)	TL	$         8.39	$       8.31	1.0%
	Total	$       20.48	$     20.31	0.9%
Billed Revenue*/Shpmnt	LTL	$     241.84	$   232.91	3.8%
	TL	$  1,436.14	$1,376.08	4.4%
	Total	$     259.39	$   248.20	4.5%
Billed Revenue*/Shpmnt	LTL	$     231.47	$   222.71	3.9%
(w/o FSC)	TL	$  1,374.05	$1,340.62	2.5%
	Total	$     248.26	$   237.67	4.5%
Tonnage	LTL	651,446	639,198	1.9%
(tons)	TL	161,304	144,418	11.7%
	Total	812,750	783,616	3.7%
Shipments	LTL	1,321,242	1,321,093	0.0%
	TL	19,701	17,914	10.0%
	Total	1,340,943	1,339,007	0.1%

  * Billed revenue does not include revenue deferral required for financial statement purposes under the Company’s revenue recognition policy.

Beginning this quarter, there has been a reclassification between revenue and expense associated with certain shipments where ABF utilizes a third-party carrier for pickup or delivery of freight. This applies to shipments where ABF retains the primary obligation to provide services to the customer. The amounts reclassified were $6.4 million in the first quarter 2004 and $6.6 million in the first quarter 2003. 

There were 64 workdays in the three months ended March 31, 2004 and 63 workdays in the three months ended March 31, 2003.

Includes U.S., Canadian and Puerto Rican operations of ABF affiliates.

Contact:    Mr. David E. Loeffler, Senior Vice President, Chief Financial Officer and Treasurer

                Telephone: (479) 785-6157

                Mr. David Humphrey, Director of Investor Relations

                Telephone: (479) 785-6200