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YELLOW FREIGHT RELEASES FOURTH QUARTER FINANCIAL RESULTS

 OVERLAND PARK, Kan., Jan. 29 /PRNewswire/ -- George E. Powell III, president and chief executive officer, reported today that Yellow Freight System, Inc. of Delaware (NASDAQ: YELL) had operating revenue of $2,262,676,000 for the full year of 1992, down 3 percent compared to 1991 operating revenue of $2,344,143,000. Net income in 1992, before the impact of the accounting change discussed below, was up 54 percent to $41,040,000, or $1.46 per share, versus 1991 net income of $26,654,000, or $.95 per share. The operating ratio for 1992 improved to 96.3 from 97.6 in 1991.
 During the first quarter of 1992, the company recorded a nonoperating charge of $11,500,000, or $.41 per share, to after tax earnings, reducing full year net income to $1.05. This charge, which had no impact on cash flow, is the cumulative effect of a change in the company's motor carrier subsidiaries revenue recognition policy.
 Fourth quarter 1992 operating revenue was $559,176,000, a decline of 3 percent from fourth quarter 1991 operating revenue of $575,097,000. Net income in the most recent quarter, however, increased to $6,463,000, or $.23 per share, compared to $1,419,000, or $.05 per share, in the fourth quarter of the prior year. The operating ratio improved to 97.3 in the fourth quarter of 1992 versus 99.0 in the same period of 1991.
 Yellow Freight, the company's primary motor carrier subsidiary, reported that total tonnage for the full year of 1992 was down 5.5 percent while less-than-truckload (LTL) tonnage was down 5.9 percent, both compared to 1991 on a per day basis. Total tonnage for the fourth quarter of 1992 was 5.3 percent lower and LTL tonnage was 5.5 percent lower than for the same period of 1991.
 Powell said that, "Thanks to the hard work and dedicated performance of its employees, Yellow Freight was successful in improving revenue yields and increasing operating margins in 1992 despite declining tonnage. Throughout the year, the entire Yellow Freight organization remained focused on cost control, operating efficiency and customer service."
 On January 1, 1993, Yellow Freight implemented a general rate increase of 4.6 percent with an initial impact on revenue of 2.5 percent. Yellow is committed to retaining the benefit of this increase and improving profitability.
 On November 20, 1992, the company announced a tender offer for all of the approximately 5.8 million shares of Preston Corporation at a price of $4.125 per share. According to Powell, "Preston, through its subsidiaries, would provide the company with an important presence in several significant regional transportation markets, a key ingredient in the company's long-term strategy." The acquisition is subject to approval by the Interstate Commerce Commission, as well as certain other conditions. If these conditions are fulfilled, the transaction will close by March 1, 1993.
 The Board of Directors of the company declared a quarterly dividend of 23 1/2 cents per share to be paid February 22 to shareholders of record on February 8.
 STATEMENTS OF CONSOLIDATED INCOME
 Yellow Freight System, Inc. of Delaware and Subsidiaries
 For the Quarter and Twelve Months Ended December 31, 1992 and 1991
 (Amounts in thousands except per share data)
 (Unaudited)
 Fourth Quarter Twelve Months
 1992 1991 1992 1991
 OPERATING REVENUE $559,176 $575,097 $2,262,676 $2,344,143
 OPERATING EXPENSES:
 Sal wages & emply ben 381,506 394,771 1,540,175 1,592,594
 Oper expenses & supp 72,001 79,127 286,856 320,825
 Oper taxes & licenses 20,738 21,662 83,903 85,056
 Claims & insurance 13,128 15,512 52,051 57,052
 Communications & util 7,677 8,047 30,994 32,037
 Depreciation 29,433 30,404 118,419 124,687
 Purch transport & rent 19,465 19,694 67,464 74,985
 Total oper expenses 543,948 569,217 2,179,862 2,287,236
 INCOME FROM OPERATIONS 15,228 5,880 82,814 56,907
 NONOPERATING EXPENSES:
 Interest expense 2,946 3,577 12,150 14,159
 Other, net 1,316 121 5,271 2,400
 Nonoper expenses, net 4,262 3,698 17,421 16,559
 INCOME BEF INCOME TAX 10,966 2,182 65,393 40,348
 PROV FOR INCOME TAX 4,503 763 24,353 13,694
 INCOME BEF CUMULATIVE EFFECT
 OF ACCTING CHANGE 6,463 1,419 41,040 26,654
 CUMULATIVE EFFECT OF CHANGE IN
 REV RECOGNTN METHOD --- --- (11,500) ---
 NET INCOME $ 6,463 $ 1,419 $ 29,540 $ 26,654
 AVER COM SHRS OUTSTND 28,098 28,088 28,093 28,090
 EARNINGS PER SHARE:
 Income bef cumulative effect
 of accounting change $ .23 $ .05 $ 1.46 $ .95
 Net Income $ .23 $ .05 $ 1.05 $ .95
 OPERATING RATIO 97.3 99.0 96.3 97.6
 Pro forma amounts assuming the accounting
 change was applied retroactively:
 Net Income $ 6,463 $ 5,468 $ 41,040 $ 28,454
 Earnings Per Share $ .23 $ .19 $ 1.46 $ 1.01
 -0- 1/29/93
 /CONTACT: Phillip A. Spangler of Yellow Freight System, Inc. of Delaware, 913-967-4300/
 (YELL)


CO: Yellow Freight System, Inc. of Delaware ST: Kansas IN: TNS SU: ERN

MC -- DV001 -- 0675 01/29/93 10:29 EST
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Date:Jan 29, 1993
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