(Fort Smith, Arkansas, July 25, 2005) -- Arkansas Best Corporation (Nasdaq: ABFS) today announced second quarter 2005 net income of $23.4 million, or $0.91 per diluted common share, compared to second quarter 2004 net income of $19.3 million, or $0.76 per diluted common share.  Arkansas Best’s second quarter 2005 revenue was $456.7 million compared to $424.5 million in the second quarter of 2004.

ABF Freight System, Inc.^®

ABF Freight System, Inc., the company’s largest subsidiary, had second quarter 2005 revenues of $417.5 million, a per-day increase of 6.8% over second quarter 2004 revenue of $391.0 million.  Second quarter 2005 operating income at ABF was $38.1 million compared to $32.8 million during the second quarter of 2004, an increase of 16.2%.  ABF’s second quarter 2005 operating ratio was 90.9% versus an operating ratio of 91.6% in the second quarter of 2004.  “ABF increased its revenues and improved its operating margins in the second quarter of 2005 through balanced yield improvement and cost reductions.  Although we did not have the strong tonnage growth that we had in the second quarter of 2004, our operating ratio and profits were better,” said Robert A. Young III, Arkansas Best Chairman and Chief Executive Officer. 

“Several areas contributed to the improvement in ABF’s second quarter operating ratio versus last year.  LTL and truckload revenue yields, excluding fuel surcharge, increased by over three percent.  ABF continues to emphasize the addition of profitable business and remains committed to maintaining a good balance between tonnage growth and overall profitability,” said Mr. Young.  “On the cost side, ABF reduced its use of rail by moving a higher percentage of freight with ABF drivers and equipment.  In many of the lanes where ABF discontinued using rail, we improved transit-time reliability and reduced costs.  ABF’s second quarter workers’ compensation costs are below last year by approximately $2.7 million for a couple of reasons.  First, there are reductions in the frequency and severity of new claims.  Second, in last year’s second quarter, ABF incurred additional costs of approximately $1.1 million due to an increase in the reserves associated with the insolvency of one of its workers’ compensation excess claims insurers.  However, the decline in workers’ compensation costs was offset, to some extent, by an increase in non-union health costs,” said Mr. Young.  “Despite a decline in second quarter LTL tonnage per day, 2005 second quarter operating results illustrate that ABF’s business is still at a level where improvement of yields through an emphasis on individual account profitability and strict cost control can produce a very profitable quarter,” said Mr. Young.

ABF’s second quarter LTL tonnage per day decreased by 3.4% versus last year.  “Last year, beginning in April and continuing throughout the remainder of the year, ABF experienced an increase in LTL tonnage of nearly nine percent compared to the last nine months of 2003.  Now, a year later, our comparative LTL tonnage figures are coming up short of those levels,” said Mr. Young.  ABF’s 2005 second quarter truckload tonnage per day increased by 7.8% over the same period last year.  “Once again ABF had strong growth in its truckload tonnage, continuing a trend that began in the fourth quarter of 2003,” said Mr. Young.  Through the first twenty-one days of July, average daily tonnage figures in ABF’s total business are lower than last year by a little more than three percent. 

Billed LTL revenue per hundredweight was $27.53 versus last year’s second quarter figure of $25.37.  Billed LTL revenue per hundredweight, excluding fuel surcharge, increased by 3.2%.  “Though very competitive, the LTL pricing environment remains solid,” said Mr. Young.  “We are pleased with the current retention level of the May 23 general rate increase.  In addition, the percentage of price increases on contract renewals continues to be encouraging.”  ABF’s second quarter 2005 LTL weight per shipment increased by just under one percent compared to the second quarter of 2004.  Second quarter 2005 LTL length of haul declined by 1.4% versus the same period in 2004.  LTL freight density was flat compared to the second quarter of 2004.  Increases in weight per shipment and decreases in length of haul cause revenue per hundredweight to go down.

ABF’s billed truckload revenue per hundredweight, excluding fuel surcharge, increased by 8.1%.  “These larger shipments, which are priced at levels that produce good margins, help fill available capacity within ABF’s network,” said Mr. Young.  “ABF will continue to pursue truckload-sized shipments as long as service on its base LTL business is not adversely affected and the good margins we currently have can be maintained.”

“ABF’s second quarter productivity measures on the dock and in the city pickup and delivery operation were consistent with those of recent quarters, though they are below those of the second quarter of 2004.  The increase in truckload shipments, which on a per-bill basis are generally more labor intensive to pickup and deliver, combined with fewer LTL shipments reduced second quarter productivity measures in ABF’s street and dock operations compared to last year,” said Mr. Young.  “However, the yard productivity of trailer movement to and from the dock at ABF’s largest facilities was at its highest level since the third quarter of 2003.”

ABF’s second quarter cargo claim ratio, a measure of net cash payouts to revenue, was 0.72%, an improvement when compared to this year’s first quarter.  “We believe ABF’s full-year 2004 cargo claim ratio of 0.79% was one of the best in the LTL industry.  We are pleased with progress that was made in the second quarter to further reduce cargo claims,” said Mr. Young.  “ABF’s emphasis on undamaged deliveries provides value to its customers and to the marketplace.”  

ABF's Premium Service Employee Agreement

In May 2005, ABF reached agreement with the International Brotherhood of Teamsters union on specific language outlining ABF’s use of the Premium Service Employee provisions of its labor agreement in 13 Northeastern facilities.  ABF’s implementation of this service began in June.  “We are excited about the opportunities this agreement offers for new business within our company and for additional employee jobs,” said Mr. Young.  “We are also encouraged by the enthusiasm and support our existing employees have shown for this new service.  As a result of this agreement, ABF will be able to offer more second-day service lanes and can now provide overnight and even same-day service in selective lanes in the dense Northeastern market.  The rollout of this service will be deliberate and ABF will build on initial successes in additional locations.”   

Common Stock Purchase

During the second quarter of 2005, Arkansas Best made open-market purchases, totaling 125,000 shares, of its common stock.  The total purchase price for these transactions was $4.0 million.  These common shares were added to the company’s treasury stock.  Since February 2003, as a part of a previously announced program to repurchase up to a maximum of $25 million of its common stock, Arkansas Best has purchased a total of 634,150 shares totaling $17.9 million.  Arkansas Best plans to continue making open-market purchases of its stock on an opportunistic basis. 

Conference Call

Arkansas Best Corporation will host a conference call with company executives to discuss the 2005 second quarter results.  The call will be today, Monday, July 25, 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 Saturday, August 13.  To listen to the playback, dial (800) 642-1687.  The conference call ID for the playback is 7514648.  The conference call and playback can also be accessed, through Saturday, August 13, 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 tables show financial data and operating statistics on ABF Freight System, Inc.

	Three Months Ended June 30				Six Months Ended June 30
	2005	2004	% Chg		2005	2004	% Chg
Billed Revenue*/CWT   LTL	$     27.53	$    25.37	8.5%		$     26.92	$     24.97	7.8%
TL	$     10.69	$      9.37	14.1%		$     10.22	$       9.09	12.4%
Total	$     23.91	$    22.21	7.7%		$     23.41	$     21.83	7.2%
Billed Revenue*/CWT   LTL	$     24.82	$    24.06	3.2%		$     24.42	$     23.78	2.7%
(without fuel               TL	$       9.62	$      8.90	8.1%		$       9.21	$       8.66	6.4%
surcharge) Total	$     21.55	$    21.07	2.3%		$     21.22	$     20.79	2.1%
Billed Revenue*/Shpt   LTL	$   272.09	$   248.68	9.4%		$   265.53	$   245.43	8.2%
TL	$1,735.43	$1,553.27	11.7%		$1,657.81	$1,496.93	10.7%
Total	$   296.14	$   267.38	10.8%		$   287.68	$   263.59	9.1%
Billed Revenue*/Shpt    LTL	$   245.29	$   235.84	4.0%		$   240.86	$   233.77	3.0%
(without fuel                            TL	$1,561.90	$1,474.62	5.9%		$1,493.37	$1,426.25	4.7%
surcharge)Total	$   266.93	$   253.61	5.3%		$ 260.78	$   251.07	3.9%
Tonnage                     LTL	690,768	715,078	(3.4)%		1,361,336	1,366,524	(0.4)%
(tons)                         TL	189,671	175,872	7.8%		361,750	337,176