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YELLOW HOLDING COMPANY TENDERS OFFER FOR PRESTON CORPORATION

 OVERLAND PARK, Kan., Nov. 20 ~PRNewswire~ -- George E. Powell III, president and chief executive officer of Yellow Freight System, Inc. of Delaware, (YFSD) (NASDAQ: YELL) announced that YFSD has entered into a definitive agreement with Preston Corporation (NASDAQ: PTRK) to acquire Preston for $4.125 per share. The Preston Board of Directors has agreed to recommend approval to its stockholders.
 YFSD will promptly commence an all cash tender offer for Preston Corporation's approximately 5.8 million shares outstanding.
 YFSD has agreed, if the tender offer is completed, to repay certain Preston indebtedness (estimated to be approximately $85 million) and to replace certain standby letters of credit (estimated to be approximately $31 million).
 Preston Corporation, Preston, Md, owns Preston Trucking, Saia Motor Freight Line based in Houma, La., and Smalley Transportation based in Tampa, Fla. Preston Trucking, with 1991 revenue in excess of $400 million, is primarily a regional less-than-truckload (LTL) carrier with 75 terminals serving two distinct regional markets that encompass 20 states in the Northeast and Upper Midwest. Saia, also a regional LTL carrier, provides overnight and second-day service in nine southeastern states and Puerto Rico and recorded 1991 revenue of $109 million. Smalley provides regional service primarily to customers throughout Florida and Georgia and recorded 1991 revenues of $41 million. Together Saia and Smalley have 48 terminals.
 "This acquisition will provide us with an important presence in several significant and fast growing regional transportation markets, a key ingredient in our long-term corporate strategy. And it gives Preston Corporation and its subsidiaries the stability to continue their tradition of excellent customer service," Powell stated.
 According to Powell, the first priority will be to restore profitability to Preston Trucking. "We believe we can make the necessary adjustments to turn around the Preston Trucking operation and own a profitable company," he said.
 The Preston companies will operate independently. Additional information regarding the direction of operations is expected to be released following final approval of the transaction.
 The acquisition is subject to a number of conditions including approval by the Interstate Commerce Commission (ICC). YFSD expects ICC action by the first quarter of 1993.
 YFSD, Overland Park, is a holding company with subsidiaries specializing in longhaul LTL transportation, logistics management, and technology services. The companies serve customers throughout the United States, Puerto Rico, Canada and Mexico. LTL longhaul service is also available to Europe via an alliance with The Royal Frans Maas, a Netherlands-based transportation and logistics company.
 -0- 11~20~92
 ~CONTACT: Linda George of Yellow Freight System, Inc. of Delaware, 913-967-4383~
 (YELL PTRK)


CO: Yellow Freight System, Inc. of Delaware; Preston Corporation ST: Kansas, Maryland IN: TRN SU: OFR

BB -- DV005 -- 3585 11~20~92 17:35 EST
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Publication:PR Newswire
Date:Nov 20, 1992
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