Celadon Group, Inc. to Manage Trucking Operation in Kuwait.

Business Editors

INDIANAPOLIS--(BUSINESS WIRE)--Feb. 11, 2004

Celadon Group Inc. (Nasdaq:CLDN) today announced that it has agreed to manage a trucking operation based in Kuwait that was formed to provide transportation services for the world community of suppliers involved with the rebuilding efforts in Iraq. The joint venture was formed by Celadon and a Kuwaiti investment group, with Celadon providing transportation management expertise and the Kuwaiti investment group providing all of the capital needed to organize and operate the joint venture. The joint venture will operate under the name Celadon East Transport Company, SAK.

David Shatto, Executive Vice President of Corporate Development, stated that, "Under the arrangement, Celadon is to provide all operational, marketing, logistics, and management of the venture. In exchange, we are to receive a portion of the venture's operating income, a monthly management fee, and recovery of our costs. In addition, over a period of time, we have the option to acquire up to a 49% interest in the venture. The Kuwaiti investment group has agreed to provide all funding for the joint venture, including all start-up costs, capital investments, and operating expenses."

"John Hekman, previously Vice President of Administration at Highway Express in Richmond, Virginia, which we acquired in August 2003, will direct the development of the gulf region operations and will be responsible for the venture's government and military contracting activities. John joined the Highway staff in 1999 after an accomplished career of logistics and procurement in the U. S. Navy. John was a Rear Admiral and retired from the Navy after 34 years of service. I will also have management oversight of the venture, while working mainly from Indianapolis," further stated Shatto.

Steve Russell, Chairman and Chief Executive Officer, said "When we first considered this opportunity, there were three principles that were very important to us. First, the effort could not involve any commitment of management time that would distract from the improvements currently underway in our North American operations. Second, we did not wish to invest capital outside our core operations. Third, we required a current return on efforts. Dave Shatto has done an impressive job in structuring an arrangement that meets the goals of our Kuwaiti partners while adhering to these basic principles. Other than Dave's responsibilities for management oversight and John Hekman's assignment, we will not transfer any employees or have other resources from Celadon's North American operations engaged in the Kuwait venture."

Celadon Group, Inc. is a truckload carrier headquartered in Indianapolis that operates in the U.S., Canada and Mexico. Celadon is also the majority owner of TruckersB2B, Inc., which is a provider of cost benefits to more than 15,000 member fleets. Please visit the company's websites at: www.celadongroup.com and www.truckersb2b.com.

The discussion set forth above as well as oral statements made by officers of the company relating thereto, may contain forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such comments are based upon information currently available to management and management's perception thereof as of the date of this press release. Actual results of the company's operations could materially differ from those forward-looking statements. Such differences could be caused by a number of factors including, but not limited to, potential adverse affects of regulation; changes in competition and the effects of such changes; increased competition; change in fuel prices; changes in economic, political or regulatory environments; changes in the availability of a stable labor force; ability of the company to hire drivers meeting company standards; changes in management strategies; environmental or tax matters; and risks described from time to time in reports filed by the company with the Securities and Exchange Commission. Readers should take these factors into account in evaluating any such forward-looking statements.