(Fort Smith, Arkansas, October 22, 2008) — Arkansas Best Corporation (Nasdaq: ABFS) today announced third quarter 2008 net income of $15.4 million, or $0.61 per diluted common share, compared to third quarter 2007 net income of $18.9 million, or $0.75 per diluted common share.  Arkansas Best’s third quarter 2008 revenue was $495.8 million, compared to third quarter 2007 revenue of $486.0 million.  “During a volatile and uncertain period in domestic and worldwide financial markets, Arkansas Best Corporation remains a stable, progressive company in a strong financial position,” said Robert A. Davidson, Arkansas Best President and Chief Executive Office.     

ABF Freight System, Inc.^®

ABF Freight System, Inc., the company’s largest subsidiary, had third quarter 2008 revenue of $476.3 million, essentially the same, on a per-day basis, as revenue in the third quarter of 2007.  Third quarter 2008 operating income at ABF was $25.2 million compared to $28.5 million during the third quarter of 2007.  ABF’s third quarter 2008 operating ratio was 94.7% versus an operating ratio of 93.9% in the third quarter of 2007.  “The increase in ABF’s third quarter operating ratio reflected the effects of a deteriorating freight environment,” said Mr. Davidson.  “However, ABF’s traditional focus on controlling costs and providing increased value to its customers helped reduce the margin erosion that would be expected during a period of economic decline,” said Mr. Davidson.

“Compared to unusually high costs in the third quarter of last year, workers’ compensation claims experience had a favorable impact of 120 basis points on ABF’s third quarter 2008 operating ratio,” said Mr. Davidson. “On a year-to-date basis, workers’ compensation costs continue to be well below ABF’s ten-year historical average and had a favorable impact of 60 basis points on the operating ratio so far this year.” 

ABF’s third quarter 2008 total weight per day decreased by 5.1% versus last year.  “In the first half of the year, ABF’s freight tonnage seemed to stabilize compared to 2007.  However, during this year’s third quarter, tonnage levels decelerated for each month of the quarter as the freight environment weakened further,” said Mr. Davidson. 

Near the end of the third quarter, ABF announced additional service improvements in its Regional Performance Model (RPM^®) that further reduced transit times in over 24,000 lanes.  Since the inception of its regional initiative, ABF has improved service in over 33,000 station-to-station lanes representing more than 40% of its North American network.  These service enhancements allow ABF to provide comprehensive and reliable service within the next-day and second-day LTL market.  “This dramatic expansion of our regional service, coupled with ABF’s best-in-class long-haul capabilities, allows one carrier to provide full North American coverage with the cargo care, web visibility, competitive costs, reliable transit times and personal attention that customers require to support their own businesses,” said Mr. Davidson.   

Total billed revenue per hundredweight was $27.75, an increase of 5.8% over last year’s third quarter figure of $26.22.  “Though fuel-related costs and the associated fuel surcharge steadily declined throughout the quarter, fuel surcharge levels were still higher than those in the same period last year,” said Mr. Davidson.  “As we’ve seen in recent quarters, revenue per hundredweight comparisons were affected by changes in ABF’s freight mix and shipment profile.  For instance, during the third quarter, length of haul decreased by 3.1% due to handling a higher percentage of regional shipments.  ABF’s total average weight per shipment increased as well.  Both of these factors reduce the year-over-year revenue per hundredweight comparison.”  ABF’s average increase on contract and deferred pricing agreements finalized during the third quarter was 2.4%.

In a number of ways, Arkansas Best and ABF represent stability in today’s challenging economic environment:

• Arkansas Best has virtually no debt and its prudent investment practices have resulted in a cash and short-term investments balance of over $231 million.
• Arkansas Best has experienced no losses in the investment of its cash balances which currently reside in U.S. treasury funds, other government securities funds and FDIC-insured certificates of deposit.
• ABF’s entire officer group averages twenty-six years of experience with the company.  The knowledge and understanding gained from this record of longevity provide for stable and consistent leadership, especially during challenging and difficult times. 
• ABF also enjoys longevity throughout its managerial, professional and employee ranks and believes that its superior group of associates offers a competitive advantage, especially during turbulent times.
• ABF has labor certainty and stability through its five-year labor contract that began on April 1, 2008.  The terms of this agreement include a blended wage and fringe benefit annual cost increase of 3.8%.  Under the provisions of this contract, any surcharges required by the 2006 Pension Protection Act will be included in the contractual contribution rate and should not increase ABF’s overall contribution obligation.
• ABF has won the American Trucking Associations’ (ATA) Excellence in Claims/Loss Prevention Award an unprecedented four times.  Recently, ABF’s third quarter and year-to-date 2008 cargo claim ratios, measures of net cash payouts to revenue, were both 0.63%.  This represents an improvement over the previous year and an improvement when compared to the full-year 2007 cargo claim ratio, which was the lowest ABF had experienced in over twenty-five years.
• ABF has won the prestigious ATA President’s Trophy for Safety an unprecedented five times.  Recently, ABF’s third quarter 2008 Department of Transportation (“DOT”) recordable accidents per million road and city miles decreased by 9% versus the same period last year.

“The current freight environment has now lasted for over two years.  In addition, the rapid changes that have recently occurred in the credit markets appear to be the most dramatic our country has experienced in over seventy years.  During a period of economic decline and financial upheaval, shippers and investors seek companies with financial strength, prudent management, operational stability and a sharp focus on increasing value in the marketplace,” said Mr. Davidson.  “In the past, I’ve spoken about a ‘flight to quality.’  During times like these, that idea has never been more true.”

Conference Call

Arkansas Best Corporation will host a conference call with company executives to discuss the 2008 third quarter results.  The call will be today, Wednesday, October 2w, at 12:00 Noon ET (11:00 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, November 14, 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 67261601.  The conference call and playback can also be accessed, through Friday, November 14, on Arkansas Best’s website 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 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.

(1)     Billed Revenue does not include revenue deferral required for financial statement purposes under the company’s revenue recognition policy.

(2)     See note to Consolidated Statements of Income on page 5.

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

Arkansas Best Corporation Financial Report

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