Old Dominion Freight Line Signs Definitive Agreement to Purchase Wichi

Old Dominion Freight Line Signs Definitive Agreement to Purchase Wichita Southeast Kansas Transit

    Business Editors/Transportation Writers

    THOMASVILLE, N.C.--(BUSINESS WIRE)--Jan. 4, 2005--

Provides Initial Entry into Nebraska and Enables Full-State Coverage in Kansas and Iowa
    Old Dominion Freight Line, Inc. (NASDAQ:ODFL) today announced the signing of a definitive agreement to purchase substantially all the assets of Wichita Southeast Kansas Transit ("WSKT"), headquartered in Parsons, Kansas. WSKT produced revenue of approximately $68 million for its fiscal year ended September 30, 2004, through its network of 43 service centers in 10 states. The transaction, which is expected to be accretive to the Company's financial results for full-year 2005, is scheduled to be completed on Saturday, January 15, 2005, subject to normal closing conditions.
    Earl E. Congdon, Chairman and Chief Executive Officer of Old Dominion, said, "Wichita Southeast Kansas Transit is a well-run LTL company with a strong franchise in its ten-state market and an excellent reputation for providing quality transportation service. We intend to combine WSKT's 43 service center operations and its entire route structure with Old Dominion's network of 139 service centers, increasing the Company's network to 149 service centers. This expansion will enhance our current service offerings in the Midwest and South Central regions of the U.S., as well as our inter-regional capabilities. In addition, we will expand our operations to our 41st state, Nebraska, through this transaction, and we will initiate full state coverage in Kansas and Iowa, bringing the total number of states with full-state coverage to 31.
    "This transaction is consistent with our growth and service strategies and with our goal of building a world-class multi-regional and inter-regional network. It also again demonstrates our ability to complement our organic growth strategy through accretive acquisitions. We have an extensive history of successfully completing and integrating strategic acquisitions, and we have the financial strength to pursue appropriate transactions aggressively. As a result, we will continue to evaluate additional transactions that meet our acquisition criteria."
    Forward-looking statements in this news release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties that could cause actual events and results to be materially different from those expressed or implied herein, including, but not limited to, the following: (1) the Company's ability to complete and successfully integrate the asset purchase of Wichita Southeast and produce the anticipated benefits from the transaction; (2) the competitive environment with respect to industry capacity and pricing; (3) the negative impact of any unionization of the Company's employees; (4) the challenges associated with executing the Company's growth strategy; (5) the Company's compliance with recent legislation requiring companies to evaluate their internal control over financial operations and reporting; (6) various economic factors such as economic recessions and downturns in customers' business cycles and shipping requirements; (7) the availability and cost of fuel; (8) difficulty in attracting or retaining qualified drivers; (9) the Company's exposure to claims related to cargo loss and damage, property damage, personal injury and workers' compensation and the costs of insurance; (10) the Company's significant ongoing cash requirements; (11) the availability and cost of new equipment; (12) the costs of compliance with, or liability for violation of, existing or future governmental regulation; (13) seasonal trends in the industry, including the possibility of harsh weather conditions; (14) the Company's dependence on key employees; (15) changes in the Company's goals and strategies, which are subject to change at any time at the discretion of the Company; and (16) other risks and uncertainties indicated from time to time in the Company's filings with the Securities and Exchange Commission.
    Old Dominion Freight Line, Inc. is a less-than-truckload multi-regional motor carrier providing one to five day service among five regions in the United States and next-day and second-day service within these regions. Through its four product groups, OD-Domestic, OD-Expedited, OD-Global and OD-Technology, the Company offers an array of innovative products and services that, subsequent to this transaction, will provide direct service to 41 states within the Southeast, South Central, Northeast, Midwest and West regions of the country, including 31 states within which it provides full-state coverage. In addition, through marketing and carrier relationships, Old Dominion provides service to and from the remaining states as well as international services around the globe.

--30--SH/na*

CONTACT: Old Dominion Freight Line, Inc., Thomasville J. Wes Frye, 336-822-5305 www.odfl.com

KEYWORD: NEBRASKA KANSAS IOWA NORTH CAROLINA INDUSTRY KEYWORD: TRANSPORTATION MERGERS/ACQ SOURCE: Old Dominion Freight Line, Inc.

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