ARKANSAS BEST CORPORATION ANNOUNCES 1996 FOURTH QUARTER AND YEAR END OPERATING RESULTS (NASDAQ/NMS: "ABFS")

(Fort Smith, Arkansas, January 30, 1997) -- Arkansas Best Corporation's operating results improved from a $33.7 million operating loss in the fourth quarter of 1995 to a $7.3 million operating loss for the fourth quarter of 1996. Arkansas Best's 1996 consolidated revenues were $1.7 billion, up 15.4% over 1995 revenues of $1.4 billion. Fourth quarter revenues of $415 million were flat with the fourth quarter of 1995.
"The changes we implemented at ABF Freight System during the year resulted in an operating ratio of 99.3% for the fourth quarter, versus a 109.3% operating ratio for the fourth quarter of 1995", said Robert A. Young, III, President and Chief Executive Officer. "The 1996 fourth quarter results for Arkansas Best's other operating subsidiaries were disappointing even though Clipper Exxpress, our principal intermodal subsidiary, and Cardinal, our truckload subsidiary, generated operating income. Clipper experienced a revenue yield decline in the fourth quarter without a corresponding cost decrease. Cardinal Freight also experienced less than expected results in the fourth quarter due to higher fuel costs, maintenance costs and driver shortages. We have implemented initiatives designed to improve operating results at all subsidiaries.
"To return Arkansas Best to profitability, we will either fix, sell or shutdown the operating subsidiaries which were not profitable in 1996."
Revenues from the less-than-truckload ("LTL") segment for 1996 were $1.2 billion and $300 million for the 1996 fourth quarter. The LTL segment had a 1996 fourth quarter operating loss of $2.2 million compared to an operating loss of $31.2 million for the 1995 fourth quarter. The LTL segment also improved its 1996 operating loss to $18.2 million from a loss of $32.9 million for 1995. ABF Freight System, Inc. ("ABF") accounts for approximately 92% of the LTL segment revenues. ABF's operating ratio as reported to the Department of Transportation for the 1996 year and fourth quarter was 100.8% and 99.3%, respectively, compared to 100.6% and 109.3% for the 1995 year and fourth quarter. ABF's 1996 tonnage increased 4.3%, consisting of a 5.9% increase in LTL tonnage and a 1.5% truckload tonnage decrease compared to 1995. ABF's fourth quarter 1996 tonnage decreased 9%, consisting of a 8.3% decrease in LTL tonnage and a 11.5% truckload tonnage decrease compared to 1995.
Tire operations segment revenues were $142 million with an operating loss of $4.8 million for 1996. For the 1996 fourth quarter, Treadco reported revenues of $35 million with an operating loss of $2.0 million. Treadco's fourth quarter results were impacted by slower than expected retread sales and additional costs of self-insurance and other items.
The foregoing release contains forward-looking statements that are based on current expectations and are subject to a number of risks and uncertainties. Actual results could differ materially from current expectations due to a number of factors, including general economic conditions; competitive initiatives and pricing pressures; union relations; availability and cost of capital; shifts in market demand; weather conditions; the performance and needs of industries served by Arkansas Best's businesses; actual future costs of operating expenses such as fuel and related taxes; self-insurance claims and employee wages and benefits; actual costs of continuing investments in technology; and the timing and amount of capital expenditures.
The Board of Directors of Arkansas Best Corporation has declared to be paid for the first quarter of 1997, to holders of record of its $2.875 Series A Cumulative Convertible Exchangeable Preferred Stock (NASDAQ/NMS: "ABFSP") on February 4, 1997, a cash dividend of $.71875 per share payable February 14, 1997.
Also, the Board of Directors decided not to reinstate the dividend on the Company's common stock, $0.01 par. Prior to suspension during the second quarter of 1996, the Company had paid a $0.01 per share dividend on the common stock.
The following table compares financial data by business segment:

END OF RELEASE
Contact: Mr. Randall M. Loyd, Director - Financial Reporting
Telephone: (501) 785-6200