Performance Transportation Services, Inc. Receives Court Approval on 'First-Day Motions' in its Voluntary Chapter 11 Filing

Obtains Approval to Borrow Up to $10 Million in DIP Financing and Approval of Use of Cash Collateral with Existing Lenders

Buffalo Bankruptcy Court Also Approves First-Day Orders for Customers, Employees and Vendors

DETROIT, Jan. 26 -- Performance Transportation Services, Inc., ("PTS") the second largest transporter of new automobiles, sport-utility vehicles and light trucks in North America announced it has received interim court approval on its $60 million debtor in possession (DIP) financing facility, which is ultimately expected to provide approximately $10 million of additional liquidity. The final DIP hearing is scheduled for February 15, 2006. The company also received interim approval to use its cash collateral through the duration of the Company's chapter 11 cases. The DIP financing and cash generated from daily operations will be used to continue to pay vendors, employees and other general corporate expenses.

The Company also announced that it received Court approval during its first day hearings to, among other things, pay pre-petition employee wages, salaries, workers' compensation, health benefits, life and disability insurance and other employee obligations during its restructuring under chapter 11. The Company obtained permission to pay certain trust taxes in the ordinary course of business, including pre-petition amounts, and to continue using its existing cash management systems. The Company is authorized to pay ordinary course post-petition expenses without seeking further Court authority.

PTS President and Chief Executive Officer Jeffrey L. Cornish said he was extremely pleased with the Court's approval of its "first-day" orders and DIP financing. "Having secured DIP financing and approval of our first-day motions within the first week of the case gives PTS forward momentum toward restructuring the Company. As we head into this challenge, our post-petition financing commitment gives the Company an additional $10 million of liquidity, and will afford us the resources to work with vendors to continue shipments and to provide uninterrupted service to our customers."

Mr. Cornish also stated that PTS has already contacted a number of its major customers and vendors, who have indicated their intention to continue to support PTS in its chapter 11 reorganization. "There will be no interruption in operations at the Company's terminals, and we will continue to purchase and pay for goods and services from our suppliers," said Mr. Cornish.

The Company filed voluntary chapter 11 petitions on behalf of the Company and certain of its subsidiaries in the U.S. Bankruptcy Court for the Western District of New York, Buffalo on January 25, 2006. The cases were filed to allow PTS to re-align its capital structure with market economics and to resolve its operational issues in order to allow it to compete more effectively in today's auto industry. PTS's non-U.S. subsidiaries were not included in the filing and will continue their business operations outside of the chapter 11 cases.