Boyd Bros. Signs Letter of Intent to Acquire Ruel Smith Transportation Services, Inc. and Its Logistics Affiliate.

CLAYTON, Ala.--(BUSINESS WIRE)--Nov. 3, 1998--Boyd Bros. Transportation Inc. (Nasdaq/NM:BOYD) today announced that it has signed a letter of intent to acquire all of the outstanding common stock of Ruel Smith Transportation Services, Inc., a privately held flatbed trucking company based in Houston, Texas. The cash-and-stock transaction, valued at $4.5 million, also will include RSTS Logistics Corp., an affiliate that markets freight brokerage services. The proposed acquisition remains subject to the execution of a definitive acquisition agreement and other customary conditions, and is expected to be completed by year's end.

"We are very pleased to announce this strategic step in our growth plans," commented Miller Welborn, acting Chief Executive Officer of Boyd Bros. "With its southwestern location, we believe Ruel Smith will serve as a platform for further expansion as we push our marketing region westward to include important traffic lanes in Texas as well as in the middle regions of the country. Moreover, with a blend of both company-owned and owner/operated power units, Ruel Smith is expected to provide additional momentum to our strategy of building a strong owner/operated fleet to complement our company-owned units, thereby providing greater flexibility in the way we capitalize on the growth opportunities that exist in our business.

"Lastly, we are very impressed with the executive management of this company," Welborn added. "This proposed acquisition is the second such transaction in as many years for Boyd Bros., and we continue to recognize the importance of identifying strong, well-run companies which are positioned to contribute to our future growth. With an excellent management team, headed by Mr. Smith, we believe Ruel Smith represents a great source of talent and expertise upon which we can draw as we continue to expand our operations."

With a fleet of 150 tractors, 75 of which are company-owned, and 164 trailers, Ruel Smith provides long- and short-haul flatbed trucking services to client companies in a variety of industries throughout the 48 contiguous United States and in Canada. Its logistics affiliate, RSTS Logistics, markets freight brokerage services to clients around the country. Together, the companies expect to report revenues of approximately $23 million for 1998 along with strong profits, making the acquisition transaction immediately accretive to Boyd Bros.' future earnings.

For the first nine months of 1998, Boyd Bros. reported operating revenues of $88.5 million and net income of $2.8 million or $.68 per share.

Comments in this news release regarding the Company's business which are not historical facts are forward looking statements that involve risks and uncertainties. These risks include those customarily associated with the acquisition of new operations, including the successful integration of those operations with the Company's existing operations, as well as the risks associated with the Company's implementation of an owner/operator strategy. In a highly competitive business environment, there can be no assurance that these strategies will successfully improve Boyd Bros. future operating profitability or that the Company will consummate additional acquisitions if and when appropriate acquisition candidates are identified.

Boyd Bros. Transportation Inc. is one of the largest flatbed trucking companies in the United States. The Company provides transportation services to high-volume, time-sensitive customers, primarily in the steel and building materials industries, and operates throughout the eastern two-thirds of the United States. For more information about the Company, visit Boyd Bros. on the Internet at www.boydbros.com.