Celadon Wins U.S. EPA SmartWay Environmental Excellence Award

Business Wire, Oct 7, 2008

INDIANAPOLIS -- Celadon Trucking Services Inc., a wholly-owned subsidiary of Celadon Group Inc. (NASDAQ: CLDN), today received an Environmental Excellence Award from the U.S. Environmental Protection Agency's SmartWay Transport Partnership.

Presented at the annual conference of the Council of Supply Chain Management Professionals in Denver, the Excellence Award recognizes companies and organizations from the transportation industry that have demonstrated leadership in conserving energy and lowering greenhouse gas emissions. Since joining the SmartWay program in 2005, Celadon has improved its fuel efficiency by 25 percent and reduced carbon dioxide (CO2) emissions per truck by 40 percent. The CO2 reduction was made in spite of the fact that Celadon's fleet actually grew by 520 trucks during that time.

"In a challenging operating environment, we have invested heavily in our business to reduce fuel consumption and air pollutants," said Celadon Chairman and Chief Executive Officer Steve Russell. "We are proud to see that this effort has been recognized by SmartWay."

Celadon operates a fleet of approximately 3,000 trucks and 8,000 trailers. Its SmartWay initiatives include the following equipment changes:

* Installation of auxiliary air heaters on trucks to eliminate the engine's need to idle in cold weather;

* Equipping trucks and trailers with the most fuel efficient tires available on the market;

* Accelerating new truck purchases planned for the next two years, all of which include EPA-compliant engines in SmartWay-certified trucks;

* Recalibrating new engines to produce less than 30 grams of nitrogen oxide at an idle;

* Shortening trailer to tractor gaps to minimize aerodynamic drag;

* Use of synthetic lubricants in all transmissions and differentials to minimize friction;

* Reduction in maximum road speed for the entire fleet.

"I commend Celadon for its leadership in promoting sustainable transportation practices through the SmartWay Transport Partnership," said Margo T. Oge, the EPA's Director of the Office of Transportation and Air Quality. "Their commitment is helping lead us toward a cleaner environment and more secure energy supply."

In April, Celadon earned the top score awarded by the EPA for freight carriers that participate in the SmartWay program. Additional details about Celadon's participation can be found at www.celadontrucking.com/smartway.> SmartWay was introduced by in 2004 as an innovative, market-based partnership to reduce fuel use, greenhouse gas emissions, and air pollutants from the freight sector. Today, more than 1,000 businesses and organizations have joined the Partnership, ranging from Fortune 500 companies to family-owned businesses. Together, the companies are conserving almost 600 million gallons of diesel fuel per year, saving the trucking industry at least $2.5 billion in annual fuel and maintenance costs, and eliminating an estimated 6.8 million tons of carbon dioxide emissions that contribute to global warming.

By 2012, the SmartWay program, with full industry participation, estimates nationwide that it will achieve annual fuel savings of 3.3 to 6.6 billion gallons of diesel fuel, eliminating 33-66 million metric tons of carbon dioxide emissions and up to 200,000 tons of nitrogen oxide emissions. For more information about SmartWay, visit www.epa.gov/smartway.> Celadon Group Inc. (www.celadongroup.com), through its subsidiaries, primarily provides long-haul, full-truckload freight service across the United States, Canada and Mexico. The company also owns TruckersB2B Inc. (www.truckersb2b.com) which provides cost savings to member fleets; Celadon Dedicated Services, which provides supply chain management solutions, such as warehousing and dedicated fleet services; and Celadon Brokerage Services.