Market Digest

Cancels Tender Offer and Evaluates Better Opportunities with its Banks

National Integration to be Complete by Early Spring 2009

YRC Worldwide Inc. announced that it is in discussions with its banking group to modify certain terms of its credit facilities that would enhance the company’s financial flexibility including changes to its leverage ratio. The company’s credit agreement defines the leverage ratio generally to be total debt to earnings before interest, taxes, depreciation and amortization. The company has targeted late January 2009 to conclude its discussions with its banks on an amendment. As a result of the discussions, YRC expects to remain in compliance with its covenants in its credit facilities (including any minimum leverage ratio requirement) at year end. In addition, the company has terminated its tender offer that expired at midnight on December 23, 2008 since the proposed wage reduction amendment to the National Master Freight Agreement, which was a condition of the tender offer, has not yet been ratified. The company currently expects the union amendment to be ratified around year end 2008.

“Given the economic uncertainty, we believe it is more productive to pursue a revised arrangement with our banks as an alternative to completing the tender offer,” stated Bill Zollars, Chairman, President and CEO of YRC Worldwide. “We continue to have good relationships with our banking group and are confident that we can work out a mutual agreement that provides flexibility in our leverage ratio while improving our liquidity position.”

The company currently has over $250 million of cash and expects to generate additional cash from sale and leaseback transactions and proceeds from sales of excess facilities, while notably reducing its 2009 equipment purchases due to the integration of its national companies. When combining these actions together with the planned wage reductions for all YRC employees, the company expects to have sufficient liquidity to effectively implement its operating strategy well into the future.

National Integration Update

As announced previously, the company is in the process of integrating the operations and local sales teams of its two largest brands, Yellow Transportation and Roadway. YRC expects to have around 80 facilities either consolidated or in the process of consolidation by the end of 2008. Due to the early success of the integration, the company has reevaluated the timeline and now expects the integration to be mostly complete by early spring 2009 with around 450 consolidated operations.

“We have the most experienced and dedicated employees in the industry and they continue to exceed our expectations in integrating two large and comprehensive networks,” said Zollars. “Based on this positive momentum, we are confident in further accelerating our timeline that will allow us to significantly improve density and enhance the value we provide to our customers even sooner.”

Fourth Quarter 2008 Update

“Consistent with other industry reports, the economic recession continues to put pressure on our volumes and pricing,” commented Zollars. “With that said, the gap between our volume trends and others within the less-than-truckload market appears to be narrowing as we further enhance our networks and improve our financial position.”

Key volume statistics for the fourth quarter-to-date as of November 30, 2008 compared to the same period in 2007 include:

• YRC National Transportation total tonnage per day down 11.8%

• YRC Regional Transportation total tonnage per day down about 11% when adjusting for the network changes in the first quarter 2008. Total tonnage per day is down 20.9% without adjusting for the network changes.

Source: YRC Worldwide Inc.