Pamt (PAMT) 8-K Announces Results for the Second Quarter

Exhibit 99.1

FROM: P.A.M. TRANSPORTATION SERVICES, INC.

P.O. BOX 188

Tontitown, AR 72770

Robert W. Weaver

(479) 361-9111

P.A.M. TRANSPORTATION SERVICES, INC.

ANNOUNCES RESULTS FOR THE SECOND QUARTER

ENDED JUNE 30, 2006

Tontitown, Arkansas, July 26, 2006......P.A.M. Transportation Services, Inc. (NASDAQ: PTSI) today reported net income of $5,241,387 or diluted and basic earnings per share of $.51 for the quarter ended June 30, 2006, and $10,424,746 or diluted and basic earnings per share of $1.01 for the six month period then ended. These results compare to net income of $3,679,592 or diluted and basic earnings per share of $.33, and $6,582,979 or diluted and basic earnings per share of $.59, respectively, for the three and six months ended June 30, 2005.

Operating revenues excluding fuel surcharges were $89,691,702 for the second quarter of 2006, a 7.6% increase compared to $83,321,440 for the second quarter of 2005. Operating revenues excluding fuel surcharges were $180,541,154 for the six months ended June 30, 2006, a 10.5% increase compared to $163,429,915 for the six months ended June 30, 2005.

Robert W. Weaver, President of the Company, commented, “We are very pleased with results for our second quarter. Good utilization and steady demand combined with favorable pricing produced record results for the Company in both earnings per share and net income. Year over year net income improved 42.4% and earnings per share improved 54.5% for the second quarter ended June 30, 2006 as compared to the second quarter ended June 30, 2005.

Revenue per total mile, before fuel surcharge, increased 9.6% to $1.34 from $1.23 for the quarters ended June 30, 2006 and 2005 respectively. The slight decrease in this rate from $1.37 per total mile, before fuel surcharge, for the first quarter of 2006 represents a transition of several lanes from temporary spot rates which included fuel surcharge to longer term contractual rates that break the regular and fuel surcharge rate into separate components.

Total miles were down slightly as a result of one less workday in the second quarter of 2006 compared to 2005 and a decrease in the average number of owner operators contracted with the Company from 70 to 45 for the quarter ended June 30, 2005 and 2006 respectively. However, average total tractors increased by 32 tractors from the first quarter to the second quarter of 2006. The majority of these tractor additions occurred late in the quarter, and as a result the impact of this additional equipment should be more apparent in the third quarter of 2006.

Customer demand remained strong throughout most of our customer base, including the automotive market, which comprised approximately 52% of our total revenue before fuel surcharge for the quarter ended June 30, 2006. While automotive freight for the second quarter 2006 is up slightly when compared to the second quarter of 2005, it is down from 54% reported for the first quarter of 2006.

While we are pleased with our results, we remain keenly aware of the forces at work that have created a sustained volatility in petroleum pricing that has directly affected our fuel cost. This fuel volatility coupled with the cost of hiring, compensating and retaining safe, qualified drivers are currently our most challenging concerns pertaining to operating costs. We will continue to strive to contain the components of these expenses which are in our control in order to mitigate their affect on future earnings and continue to add value for our shareholders.”

P.A.M. Transportation Services, Inc. is a leading truckload dry van carrier transporting general commodities throughout the continental United States, as well as in the Canadian provinces of Ontario and Quebec. The Company also provides transportation services in Mexico through its gateways in Laredo and El Paso, Texas under agreements with Mexican carriers.

Certain information included in this document contains or may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may relate to expected future financial and operating results or events, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, excess capacity in the trucking industry; surplus inventories; recessionary economic cycles and downturns in customers' business cycles; increases or rapid fluctuations in fuel prices, interest rates, fuel taxes, tolls, license and registration fees; the resale value of the Company's used equipment and the price of new equipment; increases in compensation for and difficulty in attracting and retaining qualified drivers and owner-operators; increases in insurance premiums and deductible amounts relating to accident, cargo, workers' compensation, health, and other claims; unanticipated increases in the number or amount of claims for which the Company is self insured; inability of the Company to continue to secure acceptable financing arrangements; seasonal factors such as harsh weather conditions that increase operating costs; competition from trucking, rail, and intermodal competitors including reductions in rates resulting from competitive bidding; the ability to identify acceptable acquisition candidates, consummate acquisitions, and integrate acquired operations; a significant reduction in or termination of the Company's trucking service by a key customer; and other factors, including risk factors, included from time to time in filings made by the Company with the Securities and Exchange Commission. The Company undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.

P.A.M. Transportation Services, Inc. and Subsidiaries Key Financial and Operating Statistics (unaudited)
	Quarter ended June 30,						Six Months Ended June 30,
	2006			2005			2006			2005
Revenue, before fuel surcharge	$	89,691,702		$	83,321,440		$	180,541,154		$	163,429,915
Fuel surcharge		13,672,807			7,705,844			23,348,948			13,789,161
		103,364,509			91,027,284			203,890,102			177,219,076
Operating expenses:
Salaries, wages and benefits		31,886,115			31,645,025			65,115,182			62,650,129
Fuel expense		25,964,446			19,423,386			48,218,929			36,475,542
Operating supplies		6,567,565			5,690,890			12,505,734			11,292,149
Rent and purchased transportation		11,640,183			9,423,929			22,989,151			19,255,572
Depreciation and amortization		8,428,137			7,655,598			16,794,349			15,122,468
Operating taxes and license		4,113,597			4,050,020			8,170,470			8,003,792
Insurance and claims		4,092,266			4,531,938			8,287,829			8,630,703
Communications and utilities		628,636			642,738			1,323,334			1,341,828
Other		1,086,722			1,359,208			2,585,156			2,667,249
(Gain) loss on disposition of equipment		(32,791	)		57,504			(141,559	)		74,253
Total operating expenses		94,374,876			84,480,236			185,848,575			165,513,685
Operating income		8,989,633			6,547,048			18,041,527			11,705,391
Other income (expense):
Interest expense		(236,258	)		(365,881	)		(643,780	)		(619,723	)
Total other income (expense)		(236,258	)		(365,881	)		(643,780	)		(619,723	)
Income before income taxes		8,753,375			6,181,167			17,397,747			11,085,668
Provision for income taxes		3,511,988			2,501,575			6,973,001			4,502,689
Net income	$	5,241,387		$	3,679,592		$	10,424,746		$	6,582,979
Diluted earnings per share	$	0.51		$	0.33		$	1.01		$	0.59
Average shares outstanding - Diluted		10,300,548			11,129,910			10,295,313			11,227,466

	Quarter ended June 30,						Six Months Ended June 30,
Truckload Operations	2006			2005			2006			2005
Total miles		58,277,953			59,929,150			116,459,296			117,448,781
Operating ratio*		89.32	%		91.78	%		89.27	%		92.50	%
Empty miles factor		5.60	%		5.24	%		5.47	%		5.18	%
Revenue per total mile, before fuel surcharge	$	1.34		$	1.23		$	1.36		$	1.22
Total loads		79,681			79,272			159,051			157,107
Revenue per truck per work day	$	683		$	620		$	690		$	616
Revenue per truck per week	$	3,415		$	3,100		$	3,450		$	3,080
Average company trucks		1,776			1,780			1,757			1,778
Average owner operator trucks		45			70			47			72
Logistics Operations
Total revenue	$	11,415,706		$	9,887,573		$	22,560,013		$	19,915,673
Operating ratio		94.52	%		94.86	%		95.17	%		95.25	%

	As of June 30,
	2006			2005
Long-term debt to book capitalization		11.07	%		12.52	%
Shareholders’ equity	$	176,026,757		$	168,258,823

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* Operating ratio has been calculated based upon total operating expenses, net of fuel surcharge, as a percentage of revenue, before fuel surcharge. We used revenue, before fuel surcharge, and operating expenses, net of fuel surcharge, because we believe that eliminating this sometimes volatile source of revenue affords a more consistent basis for comparing our results of operations from period to period.