Arnold Industries, Inc. Announces Record Revenues And Net Income For 1998.

LEBANON, Pa.--(BUSINESS WIRE)--Feb. 12, 1999--E.H. Arnold, Board Chairman and President of Arnold Industries, Inc. (AIND-NASDAQ), Lebanon, Pennsylvania, today announced record operating revenues and net income for the Year 1998 and the Fourth Quarter of 1998.

Operating Revenues for the Year 1998 increased $20,556,060, or 5% and Operating Income for the Year 1998 rose $5,281,050, or 10%. Basic Earnings Per Share increased from $1.23 in 1997 to $1.37 in 1998, an 11% increase. For the Fourth Quarter of 1998, Operating Revenues rose $7,116,902, or 7%, while Operating Income increased $5,535,271, or 55%. Basic Earnings Per Share in the Fourth Quarter increased from $.24 in 1997 to $.38, a 58% increase.

Set forth below are the Unaudited Consolidated Income Statements of Arnold Industries for the Fourth Quarter of 1998 as compared to the Fourth Quarter of 1997, and for the Year 1998 as compared to the Year 1997.

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                                    Fourth Quarter Ended December 31,
                                       1998                   1997

         Operating Revenues              $103,226,794     $ 96,109,892
         Operating Income                  15,565,002       10,029,731
         Income Before Taxes               15,447,999       10,006,962
         Net Income                         9,624,444        6,330,916
         Earnings Per Share (Basic)               .38              .24
         Earnings Per Share (Diluted)             .38              .24

                                           Year Ended December 31,
                                             1998             1997

         Operating Revenues              $403,720,595     $383,164,535
         Operating Income                  56,196,540       50,915,490
         Income Before Taxes               55,841,376       50,889,105
         Net Income                        35,115,848       32,210,215
         Earnings Per Share (Basic)              1.37             1.23
         Earnings Per Share (Diluted)            1.36             1.22

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Set forth below is a schedule of the Unaudited Operating Revenues, Expenses and Operating Income of the less-than-truckload (LTL) and truckload (TL) companies:

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                                           (Dollars in Thousands)
                                   Fourth Quarter Ended December 31,
                                              1998          1997
                                              ----          ----

                                   Amount      %     Amount     %
NEW PENN MOTOR EXPRESS
AND RELATED COMPANIES (LTL)
         Operating Revenues        50,515  100.0     49,483  100.0
         Operating Expenses        38,765   76.7     39,325   79.5
                                   ------  -----    -------  -----
           Operating Income        11,750   23.3     10,158   20.5

ARNOLD TRANSPORTATION
SERVICES (TL)
         Operating Revenues        52,712  100.0     46,627  100.0
         Operating Expenses        48,897   92.8     46,755  100.3
                                   ------  -----     ------  -----
           Operating Income (Loss)  3,815     7.2     (128)  ( .3)

                                       (Dollars in Thousands)
                                  Year Ended December 31,
                                  1998                 1997
                                  ----                 ----

                                Amount      %     Amount      %
NEW PENN MOTOR EXPRESS
AND RELATED COMPANIES (LTL)
         Operating Revenues     202,910  100.0    203,299  100.0
         Operating Expenses     159,359   78.5    159,336   78.4
                                --------------    -------  -----
           Operating Income      43,551   21.5     43,963   21.6

ARNOLD TRANSPORTATION
SERVICES (TL)
         Operating Revenues     200,811  100.0    179,866  100.0
         Operating Expenses     188,165   93.7    172,914   96.1
                                --------------    -------  -----
           Operating Income      12,646    6.3      6,952    3.9

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Mr. Arnold expressed confidence that the audited figures in the Annual Report for 1998 would not differ materially from the unaudited figures set forth above.

Mr. Arnold congratulated New Penn President Ken Leedy, Executive Vice President Steve O'Kane and the entire New Penn team on an outstanding 1998 performance that he anticipates will again lead the industry in operating profit margins. New Penn matched the record performance of 1997 on the strength of an excellent fourth quarter when revenue yield strategies and cost controls resulted in improved profit margins. Mr. Arnold commented that New Penn revenue comparisons were difficult to achieve in 1998 due to factors such as the 1997 strike at UPS which contributed to New Penn's double-digit growth, and competitor-driven concerns regarding the union contract negotiations, which negatively impacted growth in 1998.

Mr. Arnold commented that the truckload arm of Arnold Industries, Arnold Transportation Services, Inc. ("ATS") created as of January 1, 1998, by the consolidation of the LebArnold, SilverEagle and Dalworth Divisions, enjoyed a substantially better year in 1998 as it closed the year under the presidency of Mike Walters.

Mr. Arnold also commented that in recent years ATS has enjoyed a close working relationship with Raven Transport Company, Inc., a minority-owned brokerage/carrier based in Jacksonville, Florida. Raven, through the efforts of W. Randolph Lee, its principal owner, and Stephen J. Silverman, former owner and president of SilverEagle Transport, Inc., is acquiring employees and equipment as it becomes an active minority-owned carrier that will ultimately compete with ATS and other truckload carriers in the Southeast. Mr. Walters is currently negotiating with Mr. Lee and Mr. Silverman relative to the respective roles of ATS and Raven as Raven's operations expand.

Arnold Logistics, the assembly, distribution and warehousing arm of ATS, achieved an outstanding year in 1998. The construction of 562,500 square feet of warehouse space in Lancaster County is being completed on budget. A single customer will fully occupy both buildings by July 1, 1999. Management anticipates revenue growth for Arnold Logistics in 1999 in excess of 40%.

Mr. Arnold also announced that the quarterly dividend of 11(cent) per share will be paid March 4, 1999, to stockholders of record on February 22, 1999.

This release contains forward-looking comments that are subject to certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are detailed periodically in reports filed by the Company with the Securities and Exchange Commission, including 10-K's, 10-Q's and 8-K's.

Arnold Industries, Inc. is a holding company of transportation and logistics companies. For the year 1998, the Company reported consolidated revenues of $404 million. Business units include New Penn Motor Express, a Northeast regional next-day less-than-truckload carrier, Arnold Transpor tation Services, an irregular route and dedicated truckload carrier and Arnold Logistics, which provides integrated warehousing, distribution, order fulfillment and contract packaging services. For more information, please visit our Web site at http://www.aind.com