Heartland Express, Inc. Announces Agreement to Acquire Great Coastal Express

    CORALVILLE, Iowa--May 8, 2002--Heartland Express, Inc. announced today that it has signed a definitive agreement to purchase the business and certain trucking assets of Great Coastal Express, Inc. Great Coastal Express is a truckload carrier based near Richmond, Virginia. Great Coastal generated approximately $70 million in revenue during 2001.
    In the transaction, Heartland expects to acquire approximately 428 tractors and 1,664 trailers, as well as certain other fixed assets relating to the business. Heartland would sublease 68 tractors and also obtain access to approximately 125 owner-operators. After closing, the acquired operation is expected to continue to operate out of the Chester, Virginia headquarters as the Great Coastal division of Heartland. The purchase price was not disclosed. In addition, Heartland will lease the terminals in Chester and Roanoke, Virginia, Baltimore, Maryland, and Charlotte, North Carolina. The Seller will retain cash, accounts receivable, and certain other assets.
    The transaction is expected to close on or about June 1, 2002, and is subject to several customary closing conditions.
    Chairman, President, and Chief Executive Officer, Russell A. Gerdin stated: "For several years we have felt that Great Coastal would be a good fit with Heartland. Great Coastal's presence in the Mid-Atlantic from Maryland to the Carolinas and West through Pennsylvania and Ohio will supplement and expand our presence gained in the acquisition of A&M Express five years ago and will add critical lane density in that region. We also gained a desirable customer list that has little overlap with Heartland's and expect to retain and build upon as much of the existing business as possible. Although we expect it will take a couple of years to bring the operating ratio of that division into the mid-to-upper 80's, we expect the transaction to be accretive to earnings within six months. We like Great Coastal's operation and their people, and we look forward to adding this new division to Heartland."
    Great Coastal Express Chief Executive Officer, Martha Estes Grover, commented, "While it is very difficult to sell a business that has been part of your family for more than 50 years, this transaction solidifies the futures of our drivers, operations personnel and owner-operator partners. We look forward to working with Russell Gerdin and Heartland's management team to provide for a smooth and orderly transition."
    The Company will hold a conference call to discuss the acquisition at 10:00a.m, Central Daylight Time, on Friday, May 10, 2002. For the dial-in number or other information about the call, please contact John P. Cosaert, Chief Financial Officer, at (319) 545-2728.

    For further information contact: Russell A. Gerdin, Chief Executive Officer (319) 545-2728

    This press release and statements made by the Company in its stockholder reports and public filings, as well as oral public statements by Company representatives, may contain certain forward-looking information, usually identified by words such as "anticipates," "believes," "estimates," "projects," "expects," or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in forward-looking statements. With respect to the acquisition, the risks and uncertainties include, but are not limited to, the risk that the closing may not occur and Heartland will incur transaction costs but not receive any of the expected benefits of the transaction; the risk that integration of the acquired operation will not proceed as planned; the risk that Heartland will lose key components of the acquired operation, including customers, drivers, and owner-operators, none of whom are bound to remain with the acquired operation; the risk that Heartland will not be able to improve the profitability of the acquired operation and operate it near the level of Heartland's profitability; the risk of unknown liabilities related to the acquired operation; and the risk that pursuing, integrating, and managing the acquired operation will distract management from other operations. With respect to general business operations, the following factors, among others, could cause actual results to differ materially from those in forward-looking statements: economic recessions or downturns in customers' business cycles; excessive increases in capacity within truckload markets; surplus inventories; decreased demand for transportation services offered by the Company; increases or rapid fluctuations in inflation, interest rates, fuel prices, and fuel hedging; the availability and costs of attracting and retaining qualified drivers and owner-operators; increases in insurance premiums and deductible amounts relating to accident, cargo, workers' compensation, health, and other claims; the resale value of used equipment; seasonal factors such as harsh weather conditions that increase operating costs; and the ability to negotiate, consummate, and integrate acquisitions. Readers should review and consider the various disclosures made by the Company in this press release, stockholder reports, and in its Forms 10-K, 10-Q, and other public filings. The Company disclaims any such obligation to update or alter its forward-looking statements whether as a result of new information, future events, or otherwise.