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YELLOW FREIGHT ANNOUNCES ACCOUNTING CHANGE

 YELLOW FREIGHT ANNOUNCES ACCOUNTING CHANGE
 OVERLAND PARK, Kan., Feb. 24 /PRNewswire/ -- Yellow Freight


System Inc. of Delaware (NASDAQ: YELL) announced today it will make a change in it's method of recognizing revenue. Effective Jan. 1, 1992, Yellow's accounting policy is to recognize revenue on a percentage of completion basis while continuing to recognize expenses when incurred. As a result of this accounting change, Yellow will record a one-time, non-operating charge of $12 million to after tax earnings in the first quarter. While the accounting change will reduce net income, it will have no impact on the company's cash flow and is not expected to have a significant impact on operating income for the year.
 The Emerging Issues Task Force (EITF) of the Financial Accounting Standards Board recently reviewed the various methods used by the transportation industry to recognize revenue and expense. The EITF concluded that the accounting policy of recognizing revenue when the shipment is picked up from the customer and expenses when incurred is no longer acceptable. Yellow had been recording revenue and expenses on this basis since before it became a public company in 1959. The EITF decision, which applies to all transportation companies, will affect a number of motor carriers besides Yellow.
 Yellow Freight System, through its subsidiaries, provides less- than-truckload freight transportation to over 300,000 domestic and international customers. The company, which recorded revenue of over $2.3 billion in 1991, has more than 630 terminals providing direct service to approximately 35,000 locations throughout the United States and Canada and in Mexico and the Caribbean.
 -0- 2/24/92
 /CONTACT: Phillip A. Spangler of Yellow Freight System Inc. of Delaware, 913-345-1020/
 (YELL) CO: Yellow Freight System Inc. ST: Kansas IN: TRN SU:


MC -- DV002 -- 2051 02/24/92 16:36 EST
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Publication:PR Newswire
Date:Feb 24, 1992
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