Knight Transportation Announces Acquisition of Edwards Bros., Inc.

PHOENIX--(BUSINESS WIRE)--Aug. 15, 2005--Knight Transportation, Inc. (NYSE:KNX) announced today that on August 12, 2005 it completed the acquisition of 100% of the stock of Edwards Bros., Inc., a refrigerated truckload carrier based in Idaho Falls, Idaho. The purchase price was not disclosed.

Chairman and Chief Executive Officer, Kevin P. Knight, stated, "We are pleased to welcome the customers, driving and non-driving associates, and independent contractors of Edwards Bros. to Knight Transportation. Edwards Bros. has a long history in the refrigerated market, and we expect a good fit with our successful Knight Refrigerated operation.

“We are pleased to welcome the customers, driving and non-driving associates, and independent contractors of Edwards Bros. to Knight Transportation. Edwards Bros. has a long history in the refrigerated market, and we expect a good fit with our successful Knight Refrigerated operation.”

"Edwards Bros. has generated approximately $25 million to $30 million in revenue, including both trucking and brokerage operations. We expect to retain a majority of the revenue, focusing on the most favorable relationships and attempting to match fleet size with the number of qualified drivers. Prior to the acquisition, Edwards Bros. was marginally profitable.

"We believe that Edwards Bros. has good core customers, excellent employees, and a well-placed terminal and administrative facility in Idaho Falls that we are leasing and intend to use going forward. The business will operate under the Edwards Bros. name for the near term, with a transition to the Knight Refrigerated name expected. Morgan Edwards has agreed to work with us for the next several months to facilitate a smooth transition.

"Our first priority will be to ensure continuity of service for customers and a professional transition for driving and non-driving associates. At the same time, we will be working toward improving Edwards Bros.' profitability to Knight's standards. This will take some time, although we expect the transaction to be accretive to our earnings within two full quarters."

Knight Transportation, Inc. is a short to medium haul, truckload carrier headquartered in Phoenix, Arizona. The Company serves most of the United States through its regional operations in Phoenix, AZ; Salt Lake City, UT; Portland, OR; Las Vegas, NV; Denver, CO; Kansas City, KS; Indianapolis, IN; Katy, TX; Gulfport, MS; Charlotte, NC; Memphis, TN; Atlanta, GA; Carlisle, PA; Lakeland, FL; Tulare, CA; Chicago, IL and El Paso, TX. The Company transports general commodities, including consumer goods, packaged foodstuffs, paper products, beverage containers, imported and exported commodities and refrigerated goods.

This press release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act of 1934, and is subject to risks and uncertainties that could cause actual results to differ materially from those projected or described. Statements that constitute forward-looking statements are usually identified by words such as "anticipates," believes," "estimates," "projects," "expects," "plans," "intends," or similar expressions. Such statements include, but are not limited to, statements concerning the expected revenue, earnings, earnings per share accretion, improvements in profitability, and other financial results of Edwards Bros., as well as potential employee and customer retention, equipment replacement, and strategic benefits. Forward-looking statements are based upon the current beliefs and expectations of management and are subject to significant risks and uncertainties. Without limitation, these risks and uncertainties include the risk that the integration of Edwards Bros. into Knight over time will not be successful or will be delayed, the risk of loss of customers, drivers, and key personnel because of transition or other issues, the risk that refrigerated operations will not be as profitable as the company's dry van operations, the risk of geographic expansion of refrigerated operations, the risk of stretching management resources, other risks associated with acquisitions generally, and the business and other risks disclosed from time-time in the company's filings made with the SEC, as applied to Knight, Knight Refrigerated, and Edwards Bros. Readers are urged to carefully review and consider the various disclosures made by the company in this and other press releases and in periodic reports on forms 8-K, 10-K and 10-Q.