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CON-WAY Announces Fuel Surcharge Formula

3 August 1999

CON-WAY Announces Fuel Surcharge Formula; Unified Method Adopted to Reflect Nationwide LTL Operations

    ANN ARBOR, Mich.--August 2, 1999--Con-Way Transportation Services (CON-WAY) announced today that effective Aug. 2, CON-WAY will begin using the U.S. Department of Energy (DOE) National Average Price for a gallon of diesel fuel as the base for calculating fuel surcharges at all three of its LTL components. The price is published on the DOE Internet site each Monday evening.
    CON-WAY is the parent company for less-than-truckload (LTL) carriers Con-Way Western Express, Con-Way Central Express and Con-Way Southern Express. Until now each of the CON-WAY regional components has used the DOE diesel fuel price recorded weekly for their specific region as the basis for measuring the fuel price level.
    During the past two years, the CON-WAY LTL components have linked their operating territories and now provide service coverage that encompasses all of North America. "Many of our customers now use our service to ship both regionally as well as between our regions," said Bryan Millican, executive vice president, sales and marketing for Con-Way Transportation Services. "As fuel costs have continued to escalate over the last couple of months, customers have begun asking us to simplify their rate audit and payment procedures by using a single method of applying the fuel surcharge."
    The trigger point CON-WAY will use to start applying a fuel surcharge is $1.15 per gallon. This single price level has been worked into a surcharge translation table that is easy to understand.

               CON-WAY Fuel Surcharge Translation Table

                                CON-WAY
U.S. DOE National Average                   Fuel Surcharge
Diesel Price per Gallon             (Percent Added To Net Price)

Less Than $1.15                             No Fuel Surcharge
At $1.15 but less than $1.16                         0.3 %
At $1.16 but less than $1.17                         0.4 %
At $1.17 but less than $1.18                         0.5 %
At $1.18 but less than $1.19                         0.6 %
At $1.19 but less than $1.20                         0.7 %
At $1.20 but less than $1.21                         0.8 %
At $1.21 but less than $1.22                         0.9 %
At $1.22 but less than $1.23                         1.0 %
At $1.23 but less than $1.24                         1.1 %
At $1.24 but less than $1.25                         1.2 %
At $1.25 but less than $1.26                         1.3 %
At $1.26 but less than $1.27                         1.4 %
At $1.27 but less than $1.28                         1.5 %
At $1.28 but less than $1.29                         1.6 %
At $1.29 but less than $1.30                         1.7 %
At $1.30 but less than $1.31                         1.8 %
At $1.31 but less than $1.32                         1.9 %

    "This unified method of translation will simplify calculation and audit," said Millican. "It should also be clear that the use of one-tenth of one percent increments provides more flexibility in applying a surcharge that more closely reflects the change in our operating costs," he added.
    The CON-WAY fuel surcharge, when justified by the level of the National Average Price for diesel fuel, will become applicable on the Monday following the posting of the National Average Price on the Department of Energy Internet web site. The fuel surcharge will be removed on the Monday following the posting of a National Average Price for diesel fuel below $1.15/gallon. This delay of application is also an effort by CON-WAY to ease customer efforts at tracking the changes in their accounting and rate audit operation. Beginning and ending at the start of the workweek is intended to ease the tracking of the price changes.
    Con-Way Transportation Services is a $1.7-billion transportation company based in Ann Arbor MI. that provides time-definite and day-definite freight delivery services for commercial and industrial businesses. Within the CON-WAY family are regional less-than-truckload carriers Con-Way Central Express, Con-Way Southern Express and Con-Way Western Express; Con-Way Truckload Services, providing multi-modal, full-truckload shipping; Con-Way NOW, an expedited carrier specializing in emergency shipment service; and Con-Way Integrated Services, a contract supply chain execution service provider.
    CON-WAY is a subsidiary of Palo Alto, Calif.-based CNF Transportation Inc., a $5-billion diversified transportation company with operations worldwide.
    Further information about CON-WAY and additional press releases are available via the Internet at www.con-way.com