Transportation, Distribution & Logistics September 2004

Source: American Trucking Association Our Industry - Truckload Source: American Trucking Association $ in billions Celadon is the tenth largest truckload carrier Point to point service with no intermediate handling of freight Demand growing 5% to 6% annually Non-union

Truckload Industry 2001 - 2004 Industry dynamics 15% of all fleets failed Difficulty in obtaining insurance High fuel cost Lack of financing Production of class 8 trucks declined 1998-2000 240,000 per year average 2001-2003 140,000 per year average 2004 250,000 - replacements Barriers to entry - No new company start-ups Inability to obtain insurance Shortage of drivers Cost of technology

CELADON Highlights Leading truckload carrier with international focus Domestic - 54% of revenue Mexico - 38% of revenue (own Mexican carrier) Canada – 8% of revenue (own Canadian carrier) 2,531 tractors, 6,966 trailers Award winning safety and service

SKILLS TRANSITION REGULATORY EXPERTS –Pre-Deregulation ABILITY TO DECIPHER GOVERNMENT REGULATIONS NEGOTIATORS – Post-Deregulation SKILLED AT FINDING LOW COST PROVIDER SOPHISTICATED LOGISTICIANS – 1990’S to Present Optimal mix of modes Sourcing Raw Materials Order Frequency Locating Plant & Distribution Centers Systems Development

WORKFORCE SKILLS MARKETING SYSTEMS DEVELOPMENT SALES TRAINING ENGINEERING FACILITY MANAGEMENT