Country Wide Transport Services reports third quarter results.

CORONA, Calif.--(BUSINESS WIRE)--May 14, 1996--Country Wide Transport Services Inc. (NASDAQ: CWTS) Tuesday reported transportation revenue of $11,212,000 for the three months ended March 31, 1996, and a net loss of $1,957,000 or 41 cents per share.

This compares with transportation revenue of $12,911,000 and a net loss of $1,493,000 or 31 cents per share for the third quarter of last year.

For the nine months ended March 31, 1996, transportation revenue amounted to $36,612,000 and the net loss was $1,051,000 or 22 cents per share, which included a gain on forgiveness of debt of discontinued operations of $2,370,000 or 49 cents per share. These results compare to transportation revenue of $40,879,000 and a net loss of $1,086,000 or 23 cents per share for the same period a year earlier.

Revenue during the quarter was impacted by the downsizing of the company's trucking operation, severe winter weather and a continuing soft market for trucking services. The loss for the quarter includes one-time charges for audit adjustments by governmental agencies for prior periods, and the sale of an unprofitable division; as well as increased insurance claims, and higher fuel costs.

Timothy Lepper, president and CEO of Country Wide Transport Services, stated that: "During my second full quarter as CEO of the company, we have continued the process of right-sizing the trucking operation and emphasizing our logistics services.

"At the end of the quarter, we have implemented cost saving measures by reorganizing and reducing our administrative staff; outsourcing most of the equipment maintenance; and selling surplus trailers.

"On March 1, 1996, we sold a consistently unprofitable logistics services division at a $222,000 loss to the company. However, this is advantageous for the future, since the remaining logistics services subsidiary continues to operate profitably."

Country Wide Transport Services, through its subsidiary Country Wide Truck Service Inc., provides truckload transportation of temperature-controlled commodities throughout the United States and Canada, as well as complete logistics services for its customers through its Vertex Transportation subsidiary. -0-

                 Country Wide Transport Services Inc.
                         Financial Highlights

                             Three Months Ended      Nine Months Ended
                                 March 31,               March 31,
                            1996        1995        1996        1995

Transportation revenue  $11,212,000 $12,911,000 $36,612,000 $40,879,000
Income (loss) from
 continuing operations  $(1,474,000)  $ (13,000)$(2,142,000)  $ 298,000
Loss from discontinued
 operations                (483,000) (1,480,000) (1,279,000) (1,384,000)
Extraordinary item:
 gain on forgiveness of
 debt of discontinued
 operations, net of tax          --          --   2,370,000          --
Net loss                $(1,957,000)$(1,493,000)$(1,051,000)$(1,086,000)
Income (loss) per
 common share:
 Continuing operations    (31 cents)         --   (45 cents)    6 cents
 Discontinued operations  (10 cents)  (31 cents)  (26 cents)  (29 cents)
 Extraordinary item              --          --    49 cents          --
 Net loss                 (41 cents)  (31 cents)  (22 cents)  (23 cents)
Weighted average number
 of common shares
 outstanding              4,800,000   4,797,000   4,800,000   4,766,000

CONTACT: Country Wide Transport Services Inc.

Timothy Lepper, 800/421-2757