(Fort Smith, Arkansas, April 24, 2006) — Arkansas Best Corporation (Nasdaq: ABFS) today announced first quarter 2006 net income of $6.1 million, or $0.24 per diluted common share, compared to first quarter 2005 net income of $10.5 million, or $0.41 per diluted common share.  Excluding a previously disclosed after-tax settlement accounting charge of $5.1 million ($0.20 per diluted common share) related to distributions from Arkansas Best’s unfunded supplemental pension benefit plan, first quarter 2006 earnings per diluted common share were $0.44.

Arkansas Best’s revenue during the first quarter of 2006 was $450.6 million, a per-day increase of 8.0% over the first quarter of 2005.    

ABF Freight System, Inc.^®

ABF Freight System had first quarter 2006 revenue of $413.7 million, a per-day increase of 7.7% compared to first quarter 2005 revenue of $384.1 million.  First quarter 2006 operating income at ABF was $8.4 million compared to $17.2 million during the first quarter of 2005. Excluding the settlement accounting charge, ABF’s operating income was $16.8 million.  ABF’s first quarter 2006 operating ratio was 98.0% versus an operating ratio of 95.5% during the first quarter of 2005.  Excluding the settlement accounting charge, ABF's operating ratio was 95.9%.

ABF’s total weight per day increased by 4.4% during the first quarter of 2006 versus the first quarter of 2005.  “Although ABF’s tonnage increase in the first quarter was adequate, we are not satisfied with this result,” said Robert A. Davidson, Arkansas Best President and Chief Executive Officer.  “First quarter tonnage comparisons between this year and last year are improved by the fact that the Easter holiday occurred in the first quarter of 2005 and occurred in the second quarter of 2006.  When adjusted for the Easter effect, ABF’s total tonnage per day increased a little over 3%.”

Through the first twenty days of April, average daily tonnage figures in ABF’s total business are about 1.5% above last year.  “Adjusted for the Easter effect, April tonnage, to this point, is approximately 4% over the same period last year,” said Mr. Davidson.

Total billed revenue per hundredweight was $23.83, an increase of 4.1% over last year’s first quarter figure of $22.90.  Total billed revenue per hundredweight, excluding fuel surcharge, increased by 1.1%.  During the first quarter of 2006, ABF continued to experience significant and positive freight profile changes that dampened the nominal revenue per hundredweight.  For instance, ABF’s first quarter 2006 total weight per shipment increased by 3.4% versus the same period last year.  First quarter 2006 total length of haul declined by 1.8% compared to the first quarter of 2005.  Both higher weight per shipment and shorter length of haul reduce the revenue per hundredweight without a commensurate impact on effective pricing or shipment profitability.

“Consistent with a trend seen during the last few years, ABF experienced higher growth in the segment of shipments moving 800 miles or less.  This trend illustrates the significant opportunities for ABF as we refine our marketing and operations to further penetrate the faster-growing regional markets, which already account for over one-third of ABF’s tonnage,” said Mr. Davidson.  “Our limited trial of new operating procedures in 13 Northeastern facilities has been successful but these additional next-day and same-day regional shipments do not yet have a material impact on ABF’s system results.”           

In the first quarter of 2006, ABF’s costs were adversely impacted by additional expense recognition associated with workers’ compensation claims related to ABF’s annual review of the development factors it uses to project the expected future cost of existing claims.  Since 1999, ABF has used ten years of its claims history to calculate the appropriate claims development factors.  However, this year’s review indicated ABF was experiencing claim development beyond ten years and that this development should be considered in the factors.  As a result, Arkansas Best and its independent actuary concluded that thirteen years of claims history data was appropriate to use for calculating the claims development factors.  This change caused ABF’s first quarter 2006 workers’ compensation costs to increase by $2.5 million and added 0.6% to ABF’s operating ratio. 

“Productivity statistics, as measured by total weight per labor hour, increased by 2.4% during this year’s first quarter.  These productivity improvements were primarily the result of the increase in ABF’s total weight per shipment,” said Mr. Davidson.  “The larger shipments require more labor, but the weight per hour is greater.  As with ABF’s growing family of value-added specialty services that require more pickup, delivery and dock labor, the additional revenue results in improved profitability.”

Stock-Based Compensation

On April 17, 2006, Arkansas Best Corporation granted 192,500 shares of restricted stock under its 2005 Ownership Incentive Plan.  Beginning in the first quarter of 2006, the Financial Accounting Standards Board requires that the fair value of stock options be expensed.  Arkansas Best issued stock options through 2004 and is now required to expense the fair value of its unvested stock options over the remaining vesting period.  Arkansas Best’s first quarter 2006 expense from stock options and restricted stock grants was $1.1 million or $0.03 per diluted common share, net of taxes.  Arkansas Best had no expenses for stock options or restricted stock in the first quarter of 2005.  For the full year of 2006, Arkansas Best estimates its expense from stock options and restricted stock grants to be approximately $4.3 million or $0.10 per diluted common share, net of taxes. In 2005, restricted stock expense was $842,467, or $0.02 per diluted common share, net of taxes.

Nonunion Pension and Supplemental Pension Benefits

Arkansas Best’s nonunion pension expense will be $11.6 million for the full year 2006.  This compares to full year 2005 pension expense of $10.0 million.  Arkansas Best will use 7.9% as its 2006 investment return assumption and 5.5% as its discount rate assumption for 2006 plan liabilities.  These rates compare to 8.3% for investment returns and a 5.5% discount rate for plan liabilities for 2005.

Arkansas Best has an unfunded supplemental pension benefit plan for the purpose of providing supplemental retirement benefits to executive officers of the company.  As previously disclosed, distributions of benefits to retiring officers and previously retired officers who deferred payments until 2006 were made in the first quarter of 2006 and will be made in the third quarter of 2006.  Under FASB Statement No. 88, Arkansas Best is required to record a “pension accounting settlement” charge when cash payouts exceed annual service and interest costs of the related plan.  As a result of this required settlement accounting, in the first quarter of 2006, Arkansas Best recorded a pre-tax charge of $8.4 million or $0.20 per diluted common share, net of taxes.  For the third quarter of 2006, Arkansas Best anticipates recording another pre-tax charge of approximately $1.0 to $1.5 million or between $0.02 and $0.04 per diluted common share, net of taxes.  Although Arkansas Best anticipates having future benefit distributions that could require settlement accounting charges, such future charges should be much less significant to Arkansas Best’s financial results than the 2006 amounts.  Effective December 16, 2005, Arkansas Best’s supplemental pension benefit plan was closed to new participants, and new executive officers will participate in a three-year, performance-based plan.

Common Stock Purchase

During the first quarter of 2006, Arkansas Best made open-market purchases, totaling 100,000 shares, of its common stock.  The total purchase price for these transactions was $4.3 million.  These common shares were added to the company’s treasury stock.  Since January 2003, Arkansas Best has purchased a total of 943,150 shares totaling $29.3 million.  Under a program announced in July 2005, Arkansas Best currently has authorization to purchase up to an additional $45.7 million of its common stock.  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 2006 first quarter results.  The call will be today, Monday, April 24, 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 May 15.  To listen to the playback, dial (800) 642-1687.  The conference call ID for the playback is 7519513.  The conference call and playback can also be accessed, through Monday, May 15, on Arkansas Best’s Web site at www.arkbest.com.

Company Description

Arkansas Best Corporation, headquartered in Fort Smith, Arkansas, is a transportation holding company with two primary operating subsidiaries.  ABF Freight System, Inc., in continuous service since 1923, provides 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.  For more information, please visit 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; union and nonunion 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 Arkansas Best’s Securities and Exchange Commission (“SEC”) public filings.

The following table shows financial data and operating statistics on ABF Freight System, Inc.

 

ABF FREIGHT SYSTEM, INC.
OPERATING STATISTICS
FOR THE THREE MONTHS ENDED MARCH 31, 2006

	Three Months Ended March 31
	2006	2005	% Change
Billed Revenue*/CWT                                  Total	$     23.83	$      22.90	4.1%
Billed Revenue*/CWT (w/o FSC)                  Total	$     21.11	$      20.88	1.1%
Billed Revenue*/Shipment                          Total	$   300.14	$    278.98	7.6%
Tonnage (tons)                                           Total	879,356	842,646	4.4%
Shipments                                                   Total	1,396,079	1,383,144	0.9%
Workdays	64	64

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

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

Contact:   Ms. Judy R. McReynolds, Vice President, Controller
              Telephone: (479) 785-6157

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