Roadway Corporation Updates Expectations

    AKRON, Ohio--Aug. 29, 2002--Roadway Corporation announced today that due to a slower than expected economic recovery, it has experienced tonnage and revenue levels that are slightly below internal projections. The Company still believes it will meet its operating expectations of an improvement in its operating ratio by approximately one-half of a percent compared to the same quarter of last year. Operating income should be significantly better than last year due to operating profits generated by Roadway Next Day's subsidiaries New Penn and Arnold Transportation Services, recent general freight rate increases and operating efficiencies at Roadway Express, the Company's primary operating subsidiary.
    Despite financing costs related to Roadway's growth strategy, the Company's third quarter 2002 earnings are anticipated to be 10% to 20% better than the $0.30 per share posted in the second quarter of 2002.
    Expectations for the Company's sixteen-week fourth quarter, although dependent on the general economic recovery, are projected to deliver an operating margin improvement of approximately three-fourths of one percent when compared to the fourth quarter of 2001.