J. B. Hunt Transport Services, Inc. Reports Revenues and Earnings for the Fourth Quarter and Year Ended December 31, 2006

LOWELL, Ark.--J. B. Hunt Transport Services, Inc. :

-- Fourth Quarter 2006 Revenue:          $852 million; down 1%
-- Fourth Quarter 2006 Operating Income: $95 million; down 11% (a)
-- Fourth Quarter 2006 EPS:              39 cents vs. 41 cents (a)
-- Full Year 2006 Revenue:               $3.33 billion; up 6%
-- Full Year 2006 Operating Income:      $373 million; up 8% (a)
-- Full Year 2006 EPS:                   $1.44 vs. $1.28 (a)

   (a) 4Q 2006 includes a $12.4 million charge for insurance costs

J. B. Hunt Transport Services, Inc., announced fourth quarter 2006 net earnings of $57.8 million, or diluted earnings per share of 39 cents vs. 2005 fourth quarter earnings of $65.3 million, or 41 cents per diluted share. Financial results for the current quarter include a $12.4 million pretax charge, or $.05 per diluted share, to increase casualty and workers’ compensation claims reserves. This $12.4 million pretax charge increased casualty and workers’ compensation claims reserves to reflect the full administrative and termination costs of insurance contracts as the claims are incurred, rather than in the year the contracts terminate.

Total operating revenue for the current quarter was $852 million, a slight decrease from the $858 million for the fourth quarter of 2005. This decrease in operating revenue was primarily attributable to a reduction in fuel surcharges related to the decline in fuel prices relative to the same period a year ago and moderating demand in our Truck segment. Current quarter operating revenue, excluding fuel surcharges, increased 1% over the same period of 2005. This increase in total operating revenue, excluding fuel surcharges, was partly the result of growth in the combined tractor fleet from 11,877 in the fourth quarter of 2005 to 12,127 in the fourth quarter of 2006. Containers and trailers grew from 49,733 to 52,881 over the same period. The growth in the fleet was to support additional intermodal and dedicated business.

Operating income for the current quarter declined to $95.4 million vs. $106.6 million for the fourth quarter of 2005. The $12.4 million charge included $4.7 million of workers’ compensation expense which is classified in salaries, wages and employee benefits costs, and $7.7 million of casualty expense which is classified in insurance and claims costs. These charges were recognized in each business segment.

“Once again the power and complimentary balance of our economic model was recognized in the fourth quarter. Outstanding results in both Intermodal and Dedicated Contract Services offset lower operating income from our Truck segment which was facing particularly tough comparisons from the extremely profitable fourth quarter of 2005. 72% of our revenue and 84% of our operating income in the current quarter was derived from non-traditional truckload services. Demand for our Intermodal service was at record levels during the quarter and DCS continued to produce good growth and strong results while Truck performance was muted due to softening demand,” said Kirk Thompson, JBHT President and CEO.

Segment Information:

Intermodal (JBI)
-- Fourth Quarter 2006 Segment Revenue:    $387 million; up 8%
-- Fourth Quarter 2006 Operating Income:   $56.0 million; up 50%

The 8% revenue growth in JBI was partially the result of continued steady increases in load volume totaling in excess of 6%. Reflecting our growth in traffic lanes of shorter distances, the average length of haul was down 2%. Fuel surcharge revenue declined relative to fourth quarter 2005, while freight rates improved by 4.5%. Intermodal generated a record $56.0 million of operating income, up 50%, when compared to the results of $37.4 million in the fourth quarter of 2005. JBI operating income for the current quarter reflects $0.4 million of workers’ compensation expense and $0.6 million of casualty costs, associated with the $12.4 million pretax charge. Our strategy for the busy season of 2006 and beyond is to reduce the usage of outsourced rented and leased equipment. By using less high cost, short term outsourced resources we have been able to positively impact our profitability despite higher rail costs paid to our rail partners. Railroad service was substantially improved compared to the same quarter a year ago.

Dedicated Contract Services (DCS)
-- Fourth Quarter 2006 Segment Revenue:    $233 million; up 5%
-- Fourth Quarter 2006 Operating Income:   $24.6 million; down 14%

DCS continued to add contract business in the current quarter for existing and new customers, resulting in the addition of 91 units sequentially during the current quarter and increasing the total tractor fleet count by 348, compared to the fourth quarter of 2005. Revenue per truck per week was essentially flat compared to the same period last year as an increase in revenue per loaded mile of 4.8% offset a decline in total utilization and an increase in empty miles. Fuel surcharge revenue declined compared to the fourth quarter of 2005 due to the moderating cost of fuel. Operating income for the current quarter totaled $24.6 million, compared with $28.7 million in 2005. DCS operating income for the current quarter reflects $2.4 million of workers’ compensation expense and $3.4 million of casualty costs associated with the $12.4 million pretax charge.

Truck (JBT)
-- Fourth Quarter 2006 Segment Revenue:    $239 million; down 16%
-- Fourth Quarter 2006 Operating Income:   $14.9 million; down 63%

Truck revenue declined 16% on a 4% decrease in loads hauled compared to the same quarter a year ago. At the end of the fourth quarter the fleet size was down 315 trucks, or 6%, compared to the end of the fourth quarter of 2005. Fuel surcharge revenue declined due to lower fuel costs. Demand was much softer than the fourth quarter of 2005 and year-over-year comparisons were even more difficult due to the absence of hurricane relief shipments that were prevalent last year. Rates from consistent shippers continued to increase, growing by 4.6 cents per mile or approximately 2.7%, while rates from unplanned activity (spot pricing, back-up pricing and paid deadhead) fell 33%, vs. the same quarter in 2005. JBT operating income for the current quarter totaled $14.9 million, compared with $40.2 million in 2005. JBT operating income for the current quarter reflects $1.9 million of workers’ compensation expense and $3.7 million of casualty costs associated with the $12.4 million pretax charge.

Cash Flow and Capitalization:

No shares of treasury stock were purchased during the fourth quarter of 2006. Approximately $103 million remained authorized by our Board of Directors and available at December 31, 2006, for purchases of treasury stock. As of December 31, 2006, approximately $396 million was owed on our various credit facilities.

This press release may contain forward-looking statements, which are based on information currently available. Actual results may differ materially from those currently anticipated due to a number of factors, including, but not limited to, those discussed in Item 1A of our Annual Report filed on Form 10-K for the year ended December 31, 2005. We assume no obligation to update any forward-looking statement to the extent we become aware that it will not be achieved for any reason. This press release and related information will be available immediately to interested parties at our web site, www.jbhunt.com.

J.B. HUNT TRANSPORT SERVICES, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
			December 31, 2006			December 31, 2005
ASSETS
Current assets:
Cash and cash equivalents		$	7,371		$	7,412
Accounts receivable			346,251			343,501
Income tax receivable			11,824			0
Prepaid expenses and other			105,797			123,777
Total current assets			471,243			474,690
Property and equipment			1,884,318			1,591,561
Less accumulated depreciation			600,767			537,502
Net property and equipment			1,283,551			1,054,059
Other assets			15,263			20,125
		$	1,770,057		$	1,548,874
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Current debt		$	214,000		$	-
Trade accounts payable			170,672			162,749
Claims accruals			20,042			15,651
Accrued Payroll			42,352			61,001
Other accrued expenses			7,961			9,198
Deferred income taxes			23,703			27,487
Total current liabilities			478,730			276,086
Long-term debt			182,400			124,000
Other long-term liabilities			62,307			45,834
Deferred income taxes			294,534			285,929
Stockholders' equity			752,086			817,025
		$	1,770,057		$	1,548,874
Supplemental Data
(unaudited)
			December 31, 2006			December 31, 2005
Actual shares outstanding at end of period (000)			144,555			153,813
Book value per actual share outstanding at end of period		$	5.20		$	5.31

J.B. HUNT TRANSPORT SERVICES, INC.
Condensed Consolidated Statements of Earnings
(in thousands, except per share data)
(unaudited)
		Three Months Ended December 31
		2006					2005
				% Of					% Of
		Amount		Revenue			Amount		Revenue
Operating revenues, excluding fuel surcharge revenues	$	749,602				$	742,234
Fuel surcharge revenues		101,967					116,142
Total operating revenues		851,569		100.0%			858,376		100.0%
Operating expenses
Rents and purchased transportation		287,510		33.7%			300,080		35.0%
Salaries, wages and employee benefits		223,771		26.3%			222,248		25.9%
Fuel and fuel taxes		107,863		12.7%			112,350		13.1%
Depreciation and amortization		49,742		5.8%			42,586		5.0%
Operating supplies and expenses		37,195		4.4%			34,497		4.0%
Insurance and claims		29,457		3.5%			16,319		1.9%
Operating taxes and licenses		8,526		1.0%			8,433		1.0%
General and administrative expenses, net of gains		6,875		0.8%			9,470		1.1%
Communication and utilities		5,262		0.6%			5,768		0.7%
Total operating expenses		756,201		88.8%			751,751		87.6%
Operating income		95,368		11.2%			106,625		12.4%
Net interest expense		6,434		0.7%			1,565		0.2%
Equity in loss of associated companies		437		0.1%			1,718		0.2%
Earnings before income taxes		88,497		10.4%			103,342		12.0%
Income taxes		30,693		3.6%			38,004		4.4%
Net earnings	$	57,804		6.8%		$	65,338		7.6%
Average diluted shares outstanding		147,865					159,246
Diluted earnings per share	$	0.39				$	0.41
J.B. HUNT TRANSPORT SERVICES, INC.
Condensed Consolidated Statements of Earnings
(in thousands, except per share data)
(unaudited)
		Twelve Months Ended December 31
		2006					2005
				% Of					% Of
		Amount		Revenue			Amount		Revenue
Operating revenues, excluding fuel surcharge revenues	$	2,897,816				$	2,791,926
Fuel surcharge revenues		430,171					335,973
Total operating revenues		3,327,987		100.0%			3,127,899		100.0%
Operating expenses
Rents and purchased transportation		1,124,734		33.8%			1,058,406		33.8%
Salaries, wages and employee benefits		892,066		26.8%			855,272		27.3%
Fuel and fuel taxes		447,309		13.4%			388,962		12.4%
Depreciation and amortization		183,604		5.5%			163,034		5.2%
Operating supplies and expenses		145,794		4.4%			132,895		4.2%
Insurance and claims		71,582		2.2%			55,266		1.8%
Operating taxes and licenses		34,447		1.0%			35,827		1.1%
General and administrative expenses, net of gains		33,232		1.0%			45,939		1.5%
Communication and utilities		22,566		0.7%			22,597		0.7%
Arbitration Settlement		-		0.0%			25,801		0.8%
Total operating expenses		2,955,334		88.8%			2,783,999		89.0%
Operating income		372,653		11.2%			343,900		11.0%
Net interest expense		15,159		0.5%			5,565		0.2%
Equity in loss of associated companies		3,181		0.1%			4,709		0.2%
Earnings before income taxes		354,313		10.6%			333,626		10.7%
Income taxes		134,361		4.0%			126,315		4.0%
Net earnings	$	219,952		6.6%		$	207,311		6.6%
Average diluted shares outstanding		152,317					162,559
Diluted earnings per share	$	1.44				$	1.28
Financial Information By Segment
(unaudited)
		Three Months Ended December 31
		2006					2005
		Dollar					Dollar
		Amounts		% Of			Amounts		% Of
		(000)		Total			(000)		Total
Revenue
Intermodal	$	386,764		45%		$	359,423		42%
Dedicated		233,468		27%			222,052		26%
Truck		239,188		28%			283,608		33%
Subtotal		859,420		101%			865,083		101%
Intersegment eliminations		(7,851)		(1%)			(6,707)		(1%)
Consolidated revenue	$	851,569		100%		$	858,376		100%
Operating income
Intermodal	$	56,017		59%		$	37,367		35%
Dedicated		24,603		26%			28,686		27%
Truck		14,880		16%			40,175		38%
Other (1)		(132)		(0%)			397		0%
Operating income	$	95,368		100%		$	106,625		100%
		Twelve Months Ended December 31
		2006					2005
		Dollar					Dollar
		Amounts		% Of			Amounts		% Of
		(000)		Total			(000)		Total
Revenue
Intermodal	$	1,430,065		43%		$	1,284,255		41%
Dedicated		915,225		28%			844,091		27%
Truck		1,007,556		30%			1,019,971		33%
Subtotal		3,352,846		101%			3,148,317		101%
Intersegment eliminations		(24,859)		(1%)			(20,418)		(1%)
Consolidated revenue	$	3,327,987		100%		$	3,127,899		100%
Operating income
Intermodal	$	181,668		49%		$	123,729		36%
Dedicated		104,180		28%			100,182		29%
Truck		86,863		23%			118,747		35%
Other (1)		(58)		(0%)			1,242		0%
Operating income	$	372,653		100%		$	343,900		100%
(1) Includes corporate support activity
Operating Statistics by Segment
(unaudited)
		Three Months Ended December 31
		2006					2005
Intermodal (JBI)
Loads		167,763					157,822
Length of haul		1,981					2,019
Revenue per load	$	2,305				$	2,277
Average tractors during the period (a)		1,567					1,333
Tractors (end of period)
Company-owned		1,551					1,341
Independent contractor		23					16
Total Tractors		1,574					1,357
Containers (end of period)		27,622					23,755
Average effective trailing equipment usage		26,930					23,523
Dedicated (DCS)
Loads		349,545					332,394
Length of haul		261					269
Revenue per truck per week (b)	$	3,483				$	3,498
Average trucks during the period (c)		5,351					5,029
Trucks (end of period)
Company-owned		5,177					4,771
Independent contractor		122					152
Customer-owned (DCS Operated)		59					87
Total Trucks		5,358					5,010
Trailers (end of period)		6,519					6,352
Average effective trailing equipment usage		12,369					12,074
Truck (JBT)
Loads		213,693					221,526
Length of haul		529					580
Loaded miles (000)		110,902					126,400
Total miles (000)		126,845					143,618
Average non-paid empty miles per load		76.8					61.8
Revenue per tractor per week (b)	$	3,667				$	4,019
Average tractors during the period (a)		5,242					5,474
Tractors (end of period)
Company-owned		4,233					4,368
Independent contractor		962					1,142
Total Tractors		5,195					5,510
Trailers (end of period)		18,740					19,626
Average effective trailing equipment usage		13,164					14,070
(a) Includes company-owned and independent contractor tractors
(b) Using weighted workdays
(c) Includes company-owned, independent contractor, and customer-owned trucks
		Twelve Months Ended December 31
		2006					2005
Intermodal (JBI)
Loads		629,533					598,857
Length of haul		1,989					2,010
Revenue per load	$	2,272				$	2,145
Average tractors during the period (a)		1,485					1,259
Tractors (end of period)
Company-owned		1,551					1,341
Independent contractor		23					16
Total Tractors		1,574					1,357
Containers (end of period)		27,622					23,755
Average effective trailing equipment usage		25,152					22,881
Dedicated (DCS)
Loads		1,376,538					1,346,480
Length of haul		264					265
Revenue per truck per week (b)	$	3,466				$	3,290
Average trucks during the period (c)		5,176					5,012
Trucks (end of period)
Company-owned		5,177					4,771
Independent contractor		122					152
Customer-owned (DCS Operated)		59					87
Total Trucks		5,358					5,010
Trailers (end of period)		6,519					6,352
Average effective trailing equipment usage		12,457					11,909
Truck (JBT)
Loads		890,654					900,427
Length of haul		533					558
Loaded miles (000)		465,366					497,175
Total miles (000)		524,565					557,644
Average non-paid empty miles per load		66.6					62.0
Revenue per tractor per week (b)	$	3,704				$	3,671
Average tractors during the period (a)		5,347					5,430
Tractors (end of period)
Company-owned		4,233					4,368
Independent contractor		962					1,142
Total Tractors		5,195					5,510
Trailers (end of period)		18,740					19,626
Average effective trailing equipment usage		13,504					14,309
(a) Includes company-owned and independent contractor tractors
(b) Using weighted workdays
(c) Includes company-owned, independent contractor, and customer-owned trucks