(Fort Smith, Arkansas, January 29, 2009) – Arkansas Best Corporation (Nasdaq: ABFS) today announced a fourth quarter 2008 net loss of $11.0 million, or $0.44 per share, compared to net income of $13.5 million, or $0.54 per share in the fourth quarter of 2007.

“Arkansas Best’s fourth quarter results reflect the profitability effects of ABF’s decelerating tonnage levels and competitive pricing pressures in the midst of a freight environment of unprecedented weakness,” said Robert A. Davidson, Arkansas Best President and Chief Executive Officer.  “ABF’s fourth quarter and full-year results also reflect our continuing commitment to maintaining customer service levels, including the strategically-important regional initiative.”

“We are now over twenty-seven months into a freight recession that is the worst I have seen during my 37 years in this industry,” said Mr. Davidson.  “Fourth quarter freight declines of this magnitude, in addition to those ABF has experienced during the previous two years, have made it more and more difficult to adequately reduce network costs in step with business declines without impacting the service to our customers.  The resulting negative operating leverage has adversely influenced profitability,” said Mr. Davidson.

“Our current results are obviously unacceptable.  Since the fourth quarter of 2006, when ABF first experienced dramatic declines in business, we have been committed to taking the necessary actions to directly respond to the on-going decline in business,” said Mr. Davidson.  “Since that time we have taken the following steps to reduce ABF’s network capacity and cost structure.  Some of these actions took place in the fourth quarter of 2008 and in January 2009.  These recent changes will have a greater impact in reducing costs beginning in 2009,”:

• An 18% reduction of ABF employees (including approximately 1,100 that occurred in the fourth quarter of 2008).
• Half of our employee reductions from the last two years occurred in the fourth quarter of 2008.
• Additional employee reductions of approximately 350 in January 2009.
• Fleet reductions that include a 14% decrease in road tractors and a 9% decrease in road trailers (additional tractor and trailer reductions planned later in 2009).
• Closure of facilities and consolidation of various service areas throughout the ABF network in order to improve efficiencies and lower costs. 
• Realignment of the structure of ABF’s field management organization, to 10 nationwide regions from 12 regions, thus eliminating four field officer positions, other employee jobs and the associated overhead costs.
• Reductions of employee positions in the corporate office.
• Institution of health insurance premiums and increases in deductibles for nonunion employees.
• Elimination of 2009 cost-of-living and merit pay increases for nonunion employees.
• Elimination of pay increases and annual incentive payments to company executives.   
• Company-wide travel limitations.

“Our strong financial position, with ample cash reserves and very little debt, affords us the ability to continue a high level of service to our customers despite lower tonnage and declining prices.  In addition, we remain able to take advantage of the unique opportunities that present themselves in this environment,” said Mr. Davidson.  “Meanwhile, we will continue to respond in a prudent and resolute manner to the challenges in our industry by making the necessary changes to our cost structure.”

Arkansas Best Corporation

Fourth Quarter 2008

• Revenue of $391.2 million, a per-day decrease of 14.1% from prior year quarter of $459.3 million.
• Net loss of $0.44 per share compared to net income of $0.54 per share in the prior year period.
• Includes cash surrender value of life insurance market losses of $0.08 per share compared to $0.01 per share losses in the prior year period.
• Includes $0.17 per share costs from the ABF RPM initiative compared to prior year quarter of $0.09 per share costs.

Full Year 2008

• Revenue of $1.83 billion, a slight per-day decrease from 2007 revenue of $1.84 billion.
• Net income of $1.15 per diluted common share compared to income of $2.26 per diluted common share in 2007.
• Includes cash surrender value of life insurance market losses of $0.14 per share compared to $0.07 per share gains in the prior year period.
• Includes $0.54 per share costs from the ABF RPM initiative compared to prior year of $0.37 per share costs.

ABF Freight System, Inc.^®

Fourth Quarter 2008

• Revenue of $375.2 million compared to $441.3 million in 2007, a per-day decrease of 14.3%.
• Tonnage per-day decrease of 11.5% versus 2007.
• Total billed revenue per hundredweight of $25.09 compared to $26.02 in 2007, a decrease of 3.6%.
• Operating loss of $15.2 million compared to operating income of $19.8 million in 2007.
• Operating ratio of 104.0% compared to 95.5% in 2007.
• RPM initiative impacted the operating ratio by 1.8% compared to 0.8% in the prior year period.
  

Full Year 2008

• Revenue of $1.76 billion compared to $1.77 billion in 2007, a per-day decrease of 0.9%.
• Tonnage per-day decrease of 4.2% versus 2007.
• Total billed revenue per hundredweight of $26.70 compared to $25.81 in 2007, an increase of 3.4%.
• Operating income of $48.4 million compared to $84.5 million in 2007.
• Operating ratio of 97.2% compared to 95.2% in 2007.
• RPM initiative impacted our operating ratio by 1.3% compared to 0.9% in the prior year period.

“Though there has been little positive economic news in our industry recently, it is important to mention some of the achievements of 2008 that continue to set ABF apart in the LTL marketplace,” said Mr. Davidson.  “ABF’s cargo claim ratio reflected further improvement; ABF’s accident per mile ratio improved; ABF’s combined costs for workers’ compensation and third-party casualty claims were below historical averages; ABF was once again named as one of the top U.S. companies to sell for by Selling Power magazine and ABF was once again cited as an innovator in information technology by InformationWeek magazine.  These things matter to customers and they will continue to differentiate ABF in a hyper-competitive environment.  Our deep roots of corporate excellence, our industry-leading employee team, and our strong financial position will allow us to remain one of the leading carriers in the LTL industry,” said Mr. Davidson.

Strategic Alternatives

Arkansas Best recently engaged an advisory firm to help develop a formal strategic plan and to assist in the identification of potential acquisition opportunities.  In the fourth quarter of 2008, charges associated with this initiative were approximately $0.8 million pre-tax, or $0.02 per share, net of taxes.  Additional expenses associated with this review will occur over the next three to four months.  “Although ABF and the freight industry are in the midst of a significant decline, we believe this timely process is very important in determining a future path that maximizes shareholder value,” said Mr. Davidson.

Conference Call

Arkansas Best Corporation will host a conference call with company executives to discuss the 2008 fourth quarter and full year results.  The call will be today, Thursday, January 29, 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 20, 2009.  To listen to the playback, dial (800) 642-1687 or (706) 645-9291 (for international callers).  The conference call ID for the playback is 79853645.  The conference call and playback can also be accessed, through Friday, February 20, 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 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
 

	Three Months Ended Dec 31				Year Ended Dec 31
	2008	2007	% Chg		2008	2007	% Chg
Workdays	61	61.5			252.5	252
Billed Revenue* / CWT	$    25.09	$  26.02	(3.6)%		$    26.70	$  25.81	3.4%
Billed Revenue* / Shipment	$ 328.43	$ 331.08	(0.8)%		$  350.55	$ 328.24	6.8%
Shipments	1,131,195	1,326,268	(14.7)%		5,017,807	5,393,689	(7.0)%
Tonnage (tons)            Tons/Day	740,379      12,137	843,811      13,721	(12.3)%   (11.5)%		3,293,411         13,043	3,430,363         13,613	(4.0)%   (4.2)%

*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.

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