Consolidated Freightways Spins Off Long-Haul Motor Carrier

Business Wire, Dec 2, 1996

PALO ALTO, Calif.--(BUSINESS WIRE)--Dec. 2, 1996--Consolidated Freightways, Inc. (NYSE: CNF) reports that it will complete today the previously announced spin-off to its shareholders of a new publicly traded company, Consolidated Freightways Corporation (CFC), comprising its long-haul motor carrier and related businesses.

The tax-free distribution to shareholders of CFC common stock (Nasdaq: CFWY) will occur at the close of trading today. All CNF shareholders receive one share of CFC stock for every two shares of CNF stock owned on Nov. 15, 1996.

Following the spin-off, Consolidated Freightways, Inc. will do business as CNF Transportation, Inc. (CNF). CFC, which has been trading on the Nasdaq National Market since Nov. 13 on a "when issued" basis under the trading symbol CFWYV, will begin trading independently tomorrow on Nasdaq under the CFWY symbol.

CFC comprises CF MotorFreight, a domestic less-than-truckload motor carrier, and its Canadian operations, Canadian Freightways, Ltd., Epic Express, Milne and Craighead and Canadian Sufferance Warehouses and other related businesses. These businesses have combined annual revenues of approximately $2.1 billion.

CNF Transportation, Inc., which retains the CNF stock ticker symbol that's been on the New York Stock Exchange since 1965, consists of Emery Worldwide, the international air and ocean freight carrier; Con-Way Transportation Services, including its three regional LTL carriers and Con-Way Truckload Services; Menlo Logistics, a third-party logistics management firm; Road Systems, Inc., a trailer manufacturer; and VantageParts, a retail distributor of truck parts and supplies. Annual revenues of CNF are about $3.6 billion.

As announced on Aug. 26, 1996, the spin-off transaction offers compelling strategic and operational benefits for both companies. Industry changes and shifts in distribution patterns increasingly placed CNF's long-haul and regional motor carriers in competition with each other. The spin-off enables both companies to pursue their own market directions with greater independence and flexibility.

CONTACT: CNF Transportation, Inc.

Mark Nelson, 415/494-2900