(Fort Smith, Arkansas, January 25, 2008) — Arkansas Best Corporation (Nasdaq: ABFS) today announced fourth quarter 2007 net income of $13.5 million, or $0.54 per diluted common share, compared to $14.2 million, or $0.56 per diluted common share, in the fourth quarter of 2006. Arkansas Best’s revenue during the fourth quarter of 2007 was $459.3 million compared to $454.3 million in the fourth quarter of 2006.

“During a year when ABF operated through a challenging freight environment, Arkansas Best maintained its strong financial position and generated a full year 2007 After-Tax Return on Capital Employed of 9.5%,” said Robert A. Davidson, Arkansas Best President and Chief Executive Officer.

For the full year of 2007, Arkansas Best reported income of $2.26 per diluted common share compared to income from continuing operations of $3.16 per diluted common share in 2006. Arkansas Best’s 2007 full year revenue was $1.84 billion compared to 2006 full year revenue of $1.88 billion. 

ABF Freight System, Inc.^®

ABF Freight System, Inc., the company’s largest subsidiary, had fourth quarter 2007 revenue of $441.3 million, consistent with fourth quarter 2006 revenue of $441.4 million. ABF’s operating income during the 2007 fourth quarter was $19.8 million compared to $20.8 million in the same period last year. ABF’s fourth quarter 2007 operating ratio was 95.5% compared to its fourth quarter 2006 operating ratio of 95.3%.

“During the fourth quarter of 2006, we first experienced significant declines in year-over-year tonnage. In the fourth quarter of 2007, ABF’s total weight per day decreased by another 1.5% compared to that period,” said Mr. Davidson. “However, since October, our year-over-year tonnage trends have improved each month, with slight increases in December and January.”

Total billed revenue per hundredweight was $26.02, an increase of 2.5% over last year’s fourth quarter figure of $25.38. “Although industry pricing remained very competitive, ABF achieved reasonable price increases,” said Mr. Davidson. “Fuel prices in this year’s fourth quarter were significantly higher than the same period last year, and the higher fuel surcharge increased revenue yields. This nominal yield increase was partially offset by continuing shipment profile and freight mix changes. ABF handled a higher-than-normal percentage of spot-priced truckload shipments in order to improve utilization of system capacity. In addition, success in ABF’s regional freight initiative continued to reduce the average length of haul and the nominal yield,” said Mr. Davidson.

For the full year of 2007, ABF’s revenue was $1.77 billion, a per-day decrease of 3.3% compared to 2006 revenue. After adjusting for pension settlement expense, ABF’s 2007 operating ratio was 95.1% versus an operating ratio of 92.6% in 2006, and ABF’s 2007 operating income was $86.2 million versus $135.3 million during 2006. “The reduction in operating income was primarily associated with the effects of lower tonnage levels throughout the year and the additional costs related to the implementation of ABF’s regional model,” said Mr. Davidson. Total tonnage per day in 2007 decreased by 5.1% compared to 2006. Total billed revenue per hundredweight in 2007 was $25.81, an increase of 1.9% over last year’s figure of $25.32.

“Though the overall freight environment was weak, ABF continued to gain market traction with its Regional Performance Model (“RPM”). In the fourth quarter, ABF’s investment in RPM stabilized and the impact on year-over-year operating results was minimal,” said Mr. Davidson. “The rate of revenue growth in regional lanes is substantially outpacing that of ABF’s traditional business. We are encouraged by the success we are having, especially in our next-day markets. ABF’s initial success confirms the validity of our low-risk strategy of organic expansion in the growing regional market.”

“As I have mentioned before, the core principles of ABF’s Quality Process have guided our company since we first incorporated them twenty-five years ago. Over and over again, employees have enthusiastically embraced the supply-chain needs of our customers and have committed to meeting agreed-upon customer requirements correctly the first time. As a direct result, ABF’s distinguished customer service, innovative solutions and attention to detail provide the best value in the LTL industry,” said Mr. Davidson. ABF’s high standards of performance are illustrated by achievements in the recent fourth quarter and throughout 2007:

• ABF’s fourth quarter 2007 cargo claim ratio, a measure of net cash payouts to revenue, was below the fourth quarter of 2006, improving operating income by nearly $1 million. The full year 2007 cargo claim ratio of 0.72% was the lowest ABF has experienced in over twenty-five years.
• ABF’s fourth quarter 2007 Department of Transportation (“DOT”) recordable accidents per million road and city miles decreased by 2% versus the same period last year despite more adverse weather conditions.
• As a percent of revenue, ABF’s combined costs associated with workers’ compensation and third-party casualty claims in the fourth quarter and full year of 2007 were below the most recent five-year average.
• Even in a weak business environment, ABF’s fourth quarter 2007 receivables collection results were better than those of the same period last year. In addition, the number of freight bill exceptions was 20% below that of the fourth quarter of 2006.

“Industry statistics and positive customer feedback show that ABF leads the industry in cargo care, highway safety and billing accuracy, and those best-in-class results continue to improve,” said Mr. Davidson.

Labor Contract Negotiations

ABF’s existing labor contract with its unionized employees will expire on March 31, 2008. ABF is currently engaged in negotiations with the International Brotherhood of Teamsters regarding a new contract. ABF expects to reach a timely resolution on an agreement. It is ABF’s objective that a new labor agreement will provide business and job growth through additional services to customers.

Conference Call

Arkansas Best Corporation will host a conference call with company executives to discuss the 2007 fourth quarter results. The call will be today, Friday, January 25, at 11:00 a.m. ET (10:00 a.m. CT). Interested parties are invited to listen by calling (877) 275-1257 or (706) 634-6529 (for international callers). Following the call, a recorded playback will be available through the end of the day on Friday, February 15, 2008. To listen to the playback, dial (800) 642-1687 or (706) 645-9291 (for international callers). The conference call ID for the playback is 29050304. The conference call and playback can also be accessed through Friday, February 15 on Arkansas Best’s Web site at arkbest.com.

Company Description

Arkansas Best Corporation, headquartered in Fort Smith, Arkansas, is a transportation holding company.  ABF Freight System, Inc., Arkansas Best’s largest subsidiary, has been in continuous service since 1923.  ABF provides transportation of less-than-truckload (“LTL”) general commodities throughout North America.  More information is available at arkbest.com and abf.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 “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “plan,” “predict,” “prospects,” “scheduled,” “should,” “would,” 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 non-union 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
 

	Three Months Ended Dec 31				Year Ended Dec 31
	2007	2006	% Chg		2007	2006	% Chg
Workdays	61	61			252	252
Billed Revenue* / CWT	$    26.02	$  25.38	2.5%		$    25.81	$  25.32	1.9%
Billed Revenue* / Shipment	$ 331.08	$ 317.71	4.2%		$  328.24	$ 321.42	2.1%
Shipments	1,326,268	1,368,842	(3.1)%		5,393,689	5,692,275	(5.2)%
Tonnage (tons)	843,811	856,816	(1.5)%		3,430,363	3,613,471	(5.1)%

*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, Senior Vice President, Chief Financial Officer and Treasurer
              Telephone: (479) 785-6281

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