USFreightways Exits Freight Forwarding Business

    CHICAGO--Oct. 18, 2002--USFreightways Corporation announced today that GPS Logistics, Inc. and Seko Worldwide Acquisition LLC have agreed to acquire USF Worldwide Inc. and USF Worldwide Logistics (UK) Ltd., USF's freight forwarding subsidiaries. It is expected the transaction will close on or before October 31, 2002. Terms of the contract were not disclosed, but will be discussed in the Company's 3rd Quarter conference call, the date of which will be announced shortly.
    "Since early in the 3rd Quarter when we announced our decision that the freight forwarding segment did not fit our business strategy, we have been seeking an arrangement that would bring this portion of USF's history to a conclusion," said Samuel K. Skinner, USFreightways' Chairman, President and Chief Executive Officer. "This agreement will free USFreightways to concentrate on the growth and profitability of its core LTL, TL and logistics operations."
    This release is an effort to enhance communication and provide guidance on the ongoing quarter within the guidelines of Regulation FD. It contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are detailed from time to time in reports filed by the Company with the Securities and Exchange Commission including forms 8K, 10Q and 10K.

    USFreightways provides comprehensive supply chain management services, including high-value next-day, regional and national less-than-truckload (LTL) transportation, logistics, and premium regional and national truckload transportation. For more information, contact the Company at www.usfreightways.com.