Consolidated Freightways Signs Letter of Intent to Sell Canadian Freightways Ltd.

    VANCOUVER, Wash.--March 10, 2003--Consolidated Freightways Corporation (CF) (PINK SHEETS:CFWEQ) has signed a letter of intent with CF Canada Acquisition Ltd. (CFCAL) to sell the assets of its Canadian subsidiary, Canadian Freightways Ltd. (CFL), and the assets of certain of CFL's subsidiaries.
    The agreement contemplates a purchase price of approximately 90 million U.S. dollars, including assumption of liabilities.
    CFCAL is a group comprised of current CFL senior management and a financial partner.
    Last week, the bankruptcy court issued a bidding procedure order. Final sale requires completing a definitive agreement incorporating the conditions of the letter of intent as well as other conditions, and securing approval of the transaction by the court.
    CFL is an industry leading supply chain services company, specializing in time-sensitive and expedited services. Operations in Canada and the United States include less-than-truckload (LTL), full load (TL), and parcel transportation, sufferance warehouses, customs brokerage, international freight forwarding, fleet management and logistics management. Canadian Freightways won the 2002 Consumers Choice Award for best transportation company in Calgary and Edmonton.
    CFL is financially and operationally independent from CF and is not part of the September 2002 bankruptcy proceedings filed by the parent company. CFL's traditional high-quality customer service and profitable operations have continued throughout this time period.
    Documents related to all of CF's asset sales, including those involving the sale of CFL, are posted at the company's web site www.cf.com.

    Certain statements in this press release are forward-looking statements that are subject to material risks and uncertainties. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results or developments may differ materially from those expressed or implied in the forward-looking statements as a result of various factors that are discussed in the company's filings with the Securities and Exchange Commission. These risks and uncertainties include, but are not limited to, uncertainties relating to general economic and business conditions, the availability and cost of capital and matters relating to or in connection with the bankruptcy filing of the company and some of its subsidiaries. These risks and uncertainties also include matters arising out of the company's delay in filing with the Securities and Exchange Commission its Form 10-Q for the quarter ended June 30, 2002 and the delisting of the company's common stock by Nasdaq. Additional information regarding risks, uncertainties and other factors that may affect the business and financial results of the company can be found in the company's filings with the Securities and Exchange Commission. The company does not undertake to update any forward-looking statements in this press release or with respect to matters described herein.