(Fort Smith, Arkansas, January 28, 2010) – Arkansas Best Corporation (Nasdaq: ABFS) today announced a fourth quarter 2009 net loss of $88.7 million, or $3.54 per share. These results include previously disclosed charges for non-cash goodwill impairment of $2.55 per share and supplemental pension settlements of $0.11 per share. Excluding these charges, Arkansas Best had a fourth quarter 2009 net loss of $22.1 million, or $0.88 per share, compared to a net loss of $11.0 million, or $0.44 per share, in the fourth quarter of 2008.

“Arkansas Best’s fourth quarter results illustrate the impact of an extremely weak and uncertain freight environment that has continued now for forty months,” said Judy R. McReynolds, Arkansas Best President and Chief Executive Officer. “This economic recession has been unprecedented in its length and depth. Its impact on the LTL industry has accelerated the level of price competition throughout 2009, and the fourth quarter was no exception.”

“Although the economy has presented us with extreme challenges, the strength of our balance sheet and the depth and experience of the ABF team have allowed us to continue our focus on enhancing our services to customers. A high standard of dependability, superior cargo care and adaptability to customer-specific requirements are the important elements of that focus,” said Ms. McReynolds. 

Arkansas Best Corporation

Fourth Quarter 2009

• Revenue of $371.6 million, a per day decrease of 5.8% from prior year quarter of $391.2 million
• Net loss of $0.88 per share, excluding goodwill impairment and pension settlement charges, compared to a net loss of $0.44 per share in the prior year quarter

Full Year 2009

• Revenue of $1.47 billion, a per-day decrease of 19.3% from 2008 revenue of $1.83 billion
• Net loss of $2.46 per share, excluding goodwill impairment and pension settlement charges, compared to income of $1.18 per share in 2008

Capital Expenditures

• Total net capital expenditures
  • 2009 - $43.1 million
  • 2010 - estimated to be between $45 million and $50 million
    - This includes road and city equipment 
      replacements totaling approximately $35 million
    
• Depreciation and amortization
  • 2009 - $75.2 million
  • 2010 - estimated to be approximately $70 million to $75 million
    

ABF Freight System, Inc.^®

Results of Operations

Fourth Quarter 2009

• Revenue of $347.7 million compared to $375.2 million in fourth quarter of 2008, a per-day decrease of 8.1%
• Tonnage per day decrease of 1.6% versus fourth quarter of 2008
• Total billed revenue per hundredweight of $23.58 compared to $25.09 in fourth quarter 2008, a decrease of 6.0%
• Operating loss of $32.4 million, excluding goodwill impairment and pension settlement charges, compared to operating loss of $15.2 million in fourth quarter of 2008
• Operating ratio of 109.3% excluding goodwill impairment and pension settlement charges, compared to 104.0% in fourth quarter of 2008 

Full Year 2009

• Revenue of $1.38 billion compared to $1.76 billion in 2008, a per-day decrease of 21.0%
• Tonnage per day decrease of 11.4% versus 2008
• Total billed revenue per hundredweight of $23.81 compared to $26.70 in 2008, a decrease of 10.8%
• Operating loss of $99.9 million, excluding goodwill impairment and pension settlement charges, compared to operating income of $49.1 million in 2008
• Operating ratio of 107.2%, excluding goodwill impairment and pension settlement charges, compared to 97.2% in 2008

“Our 2010 operating performance will continue to be challenged until some positive change occurs such as a better freight economy, improved pricing or some other industry catalyst.  In the meantime, our company has responded to this environment by reducing headcount, equipment levels and costs in a number of areas in relation to available business levels.  Our employees are doing more with less while maintaining a superior level of productivity and equipment utilization,” said Ms. McReynolds. “In addition to our regular, daily management of personnel and assets, we have recently addressed our cost structure further.  Because of actions we have taken, improvements in the financial markets and other events, we anticipate lower 2010 expenses in several areas of nonunion fringe benefit costs.”

These items include:

• Suspension of the 401(k) company match
• Lower costs associated with pension and postretirement plans
• Structural changes to company health care plans
• Change to certain executive benefit plans to further align our executive compensation with the performance of the company

“We anticipate that the annual savings associated with these changes will be in a range of $15 - $18 million on a pre-tax basis,” said Ms. McReynolds.  “We firmly believe we have the best employees in the industry and it is worth noting that they have made sacrifices for the long-term future success of Arkansas Best Corporation.”

Capital Structure and Financial Resources

“Our financial strength and stability have been valuable assets that have allowed us to endure the extended freight recession,” said Ms. McReynolds.  “We continue to carefully manage our balance sheet and recognize the opportunities that it presents for our company.  We previously disclosed actions we took to secure our letters of credit and to enter into an accounts receivable securitization program.  These actions, combined with our existing cash and short-term investments, provide our company with a level of flexibility and liquidity that is necessary to address both the opportunities and challenges of an ever-changing environment.” 

“An additional step our Board of Directors has taken to preserve and manage liquidity in this uncertain environment is to reduce our quarterly cash dividend from $0.15 per share to $0.03 per share,” said Ms. McReynolds.  “We believe this dividend reduction is a prudent and responsible course of action and is in the best interest of Arkansas Best and our shareholders.”

Conference Call

Arkansas Best Corporation will host a conference call with company executives to discuss the 2009 fourth quarter and full year results.  The call will be today, Thursday, January 28, 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 Thursday, February 18, 2010.  To listen to the playback, dial (800) 642-1687 or (706) 645-9291 (for international callers).  The conference call ID for the playback is 48841303.  The conference call and playback can also be accessed, through February 18, 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, current adverse economic conditions; the impact of any limitations on our customers’ access to adequate financial resources; availability and cost of capital; shifts in market demand; weather conditions; the performance and needs of industries served by Arkansas Best Corporation’s subsidiaries; future costs of operating expenses such as fuel and related taxes; self-insurance claims and insurance premium costs; relationships with employees, including unions; union and non-union employee wages and benefits, including changes in required contributions to multiemployer pension plans; governmental regulations and policies; costs of continuing investments in technology; the timing and amount of capital expenditures; the cost, integration and performance of any future acquisitions; competitive initiatives, pricing pressures and the effect of volatility in fuel prices and the associated changes in fuel surcharges on securing increases in base freight rates; and other financial, operational and legal risks and uncertainties detailed from time to time in Arkansas Best Corporation’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				Twelve Months Ended Dec 31
	2009	2008	% Chg		2009	2008	% Chg
Workdays	61.5	61.0			251.5	252.5
Billed Revenue* / CWT	$    23.58	$  25.09	(6.0)%		$    23.81	$  26.70	(10.8)%
Billed Revenue* / Shipment	$ 322.62	$ 328.43	(1.8)%		$  314.83	$ 350.55	(10.2)%
Shipments	1,073,794	1,131,195	( 5.1)%		4,396,293	5,017,807	(12.4)%
Tonnage (tons)            Tons/Day	734,608      11,945	740,379      12,137	(0.8)%   (1.6)%		2,907,163       11,559	3,293,411         13,043	(11.7)%   (11.4)%

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