Transportation, Distribution & Logistics September 2004

1. Transportation, Distribution & Logistics September 2004

2. 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

3. 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 • High fuel cost • Shortage of drivers • Cost of technology

4. 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

5. 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

6. WORKFORCE SKILLS • MARKETING • SYSTEMS DEVELOPMENT • SALES TRAINING • ENGINEERING • FACILITY MANAGEMENT