LTL Carrier, USF Dugan, to Close

June 21, 2005
All deliveries by the less than truckload (LTL) carrier are promised to be delivered by July 15, according to USF Dugan COO, Gary Pruden. While other Yellow Roadway operating companies, New Penn Motor Express and USF Glen Moore, will not be directly impacted by the realignment, other USF components will be picking up the previous USF Dugan business

All deliveries by the less than truckload (LTL) carrier are promised to be delivered by July 15, according to USF Dugan COO, Gary Pruden. While other Yellow Roadway operating companies, New Penn Motor Express and USF Glen Moore, will not be directly impacted by the realignment, other USF components will be picking up the previous USF Dugan business.

Here’s how Yellow Roadway breaks out the new USF coverage:

• Customers in the USF Bestway (Texas) and USF Holland (generally the upper Midwest and Southeast territory) can immediately move seamlessly to these companies.

• Beginning July 11, USF Bestway, USF Reddaway and USF Holland will expand coverage to fill areas previously served by USF Dugan. Specifically:

* USF Bestway will expand coverage into Arkansas, Louisiana, Mississippi, Oklahoma, and portions of Kansas. USF Bestway is presently servicing Arizona, California, Nevada, New Mexico and Texas.
* USF Holland will expand its coverage – now in most of the upper Midwest and Southeast regions – into Missouri and Northeastern Kansas.
* USF Reddaway will take over service for Denver, Colorado.

USF Bestway will acquire 20 terminals previously in the USF Dugan stable, while USF Holland will acquire three of those terminals and USF Reddaway the terminal in Denver. Other USF Dugan terminals, a total of 48, will cease to take pickup requests after July 8.

Pruden says that during the transition USF Dugan account executives will continue to handle transportation needs and that many of them “will remain unchanged after USF Dugan closes.”

Bill Zollars, chairman, president and CEO of Yellow Roadway, says, “These changes will provide improved service to customers while increasing network efficiencies among the regional companies. We expect these actions to enhance long-term financial performance and shareholder value.”

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