Boyd Bros Transportation (BOYD) SC 13E3/A Going private transaction (amended)

-DRAFT-

Exhibit 99(c)(3)

I. INTRODUCTION

Confidential – not for duplication.

1

A. LEGG MASON’S ENGAGEMENT

o Legg Mason Wood Walker, Incorporated (“Legg Mason”) has been engaged by the Independent Committee of the Board of Directors (“Board”) of Project Tigers (the “Company”) to provide valuation analysis and its opinion as to the fairness, from a financial point of view, to the holders of the Company’s common stock (other than holders who are participants in the transaction, the “Rollover Shareholders”) of the amount of consideration to be received by such holders in a proposal presented by the investor group (the “Investor Group”).

o This summary presentation is intended as an overview of our analysis of Project Tigers. It is comprised of the following sections:

• Valuation Analysis:

– Comparable public company analysis

– Comparable M&A transactions analysis

– Discounted cash flow analysis

– Leveraged buyout analysis

– Comparable going private transactions analysis

Confidential — not for duplication.

2

A. LEGG MASON’S ENGAGEMENT

In connection with our review of the proposed Transaction, we have assumed and relied upon the accuracy and completeness of all financial information supplied to us by or on behalf of the management of the Company, and all publicly available information, and management’s assurance that they are unaware of any facts that would make the information provided to us misleading. We have not independently verified such information. We have also relied upon the management of the Company as to the reasonableness and achievability of the financial projections (and the assumptions and bases thereof) provided to us, and we have assumed that such projections have been reasonably prepared on bases reflecting the best currently available estimates and judgments as to the future operating performance of Project Tigers.

Our work is necessarily based upon information made available to us by Company management and economic and other conditions and circumstances as of September 30, 2003 and upon public information released on or after that date. The analysis which Legg Mason performed was based on the most recent financial information provided by the management of the Company. It is understood that subsequent developments may affect our analysis, and that we have no obligation to update, reissue or reaffirm our analysis.

This summary of information does not constitute an opinion and is provided for informational purposes only. We believe that our analysis should be considered as a whole, and that selecting portions of our analysis and of the factors considered by us, without considering all factors and analyses, could create a misleading view of the processes underlying our opinion. In our analysis, we made numerous assumptions with respect to industry performance, general business and economic conditions, and other matters, many of which are beyond the control of the Company.

Further, we are not making a recommendation to the shareholders as to whether or not they should vote for or against the Transaction or seek their statutory dissenters’ rights in respect of the Transaction. Also, this analysis does not constitute a recommendation of the Transaction over any other alternative transaction (including the alternative not to effect the Transaction) that may be available to Project Tigers.

Confidential — not for duplication.

3

B. OVERVIEW OF PROJECT TIGERS

o The investment community’s view of Project Tigers:

• Inconsistent financial performer

– Driver availability, insurance and diesel fuel prices affect flat bed carriers to a greater degree than dry van and temperature sensitive carriers

• Market has not validated business model

– Flat bed carriers at a disadvantage to dry van and temperature sensitive carriers

• Market capitalization limits institutional involvement

Confidential — not for duplication.

4

B. OVERVIEW OF PROJECT TIGERS

Project Tigers’ Closing Stock Price
(Trailing 12 Months as of December 10, 2003)

Note:
Source: Bloomberg LP.

Confidential — not for duplication.

5

B. OVERVIEW OF PROJECT TIGERS

o Based on a 12 month trading volume analysis, 93.1% of Project Tigers shares have traded below $6.00.

Note:
Source: Bloomberg LP.

Confidential — not for duplication.

6

B. OVERVIEW OF PROJECT TIGERS

Historical and Projected Income Statements
($ in millions)

	Historical												Projected
	Years Ended December 31,									LTM			Years Ended December 31,
	2000			2001			2002			9/30/03			2003			2004			2005			2006			2007
Revenue	$	131.6		$	127.6		$	127.8		$	131.7		$	131.4		$	135.3		$	140.7		$	147.8		$	155.2
% Growth		-1.1	%		-3.1	%		0.2	%		3.1	%		2.8	%		3.0	%		4.0	%		5.0	%		5.0	%
Operating Expenses		128.8			125.3			125.1			130.5			129.4			131.7			136.9			143.1			149.6
Total Operating Income		2.8			2.2			2.7			1.2			2.0			3.7			3.8			4.7			5.6
Operating Ratio		97.8	%		98.3	%		97.9	%		99.1	%		98.5	%		97.3	%		97.3	%		96.8	%		96.4	%
Net Interest Expense		3.9			2.7			1.8			1.2			1.2			1.4			1.5			1.5			1.5
Other Income		0.1			0.1			(0.1	)		(0.1	)		(0.1	)		(0.0	)		(0.0	)		(0.0	)		(0.0	)
Income Before Income Taxes		(1.0	)		(0.4	)		0.9			(0.1	)		0.7			2.2			2.3			3.2			4.1
Provision (Benefit) for Income Taxes		(0.0	)		0.0			0.5			0.0			0.3			1.0			0.9			1.2			1.6
Net Income		($1.0	)		($0.4	)	$	0.5			($0.1	)	$	0.4		$	1.3		$	1.4		$	1.9		$	2.5
Additional Operating Data:
Depreciation & Amortization	$	11.6		$	12.3		$	11.6		$	10.9		$	10.9		$	11.8		$	12.2		$	12.6		$	13.0
EBITDA	$	14.4		$	14.5		$	14.3		$	12.2		$	12.9		$	15.4		$	16.1		$	17.3		$	18.6

Note:
2003-2007 projected income statements provided by Company management.

Confidential — not for duplication.

7

B. OVERVIEW OF PROJECT TIGERS

Historical Income Statements
($ in thousands, except per share data)

	Historical
	Years Ended December 31,
	1989			1990			1991			1992			1993			1994			1995
Revenue	$	30,808		$	34,729		$	35,860		$	42,402		$	50,340		$	59,132		$	61,866
% Growth	NA				12.7	%		3.3	%		18.2	%		18.7	%		17.5	%		4.6	%
Operating Expenses		28,752			31,906			33,096			38,957			46,044			53,860			57,765
Operating Income	$	2,056		$	2,823		$	2,764		$	3,445		$	4,296		$	5,272		$	4,101
Operating Ratio		93.3	%		91.9	%		92.3	%		91.9	%		91.5	%		91.1	%		93.4	%
Depreciation & Amortization(1)	$	3,412		$	3,689		$	4,101		$	4,792		$	5,516		$	6,451		$	7,296
EBITDA	$	5,468		$	6,512		$	6,865		$	8,237		$	9,812		$	11,724		$	11,396
Enterprise Value Calculation:
Number of Fully Diluted Shares(2)		3,040,000			3,011,429			3,013,333			3,025,641			3,000,000			3,523,677			3,823,000
Share Price on 12/31(3)	$	5.42		$	5.42		$	5.42		$	5.42		$	5.42		$	9.75		$	7.25
Equity Value	$	16,467		$	16,312		$	16,322		$	16,389		$	16,250		$	34,356		$	27,717
Plus: Net Debt(4)	$	15,087		$	15,087		$	15,087		$	15,087		$	15,087		$	7,307		$	11,837
Enterprise Value	$	31,554		$	31,399		$	31,410		$	31,476		$	31,337		$	41,663		$	39,553

	Historical
	Years Ended December 31,																					LTM
	1996			1997			1998			1999			2000			2001			2002			9/30/03
Revenue	$	65,523		$	77,215		$	118,123		$	133,137		$	131,630		$	127,560		$	127,792		$	131,717
% Growth		5.9	%		17.8	%		53.0	%		12.7	%		-1.1	%		-3.1	%		0.2	%		3.1	%
Operating Expenses		62,873			72,124			110,797			124,920			128,796			125,340			125,054			130,472
Operating Income	$	2,650		$	5,091		$	7,327		$	8,218		$	2,834		$	2,219		$	2,738		$	1,245
Operating Ratio		96.0	%		93.4	%		93.8	%		93.8	%		97.8	%		98.3	%		97.9	%		99.1	%
Depreciation & Amortization(1)	$	8,261		$	9,181		$	10,320		$	10,720		$	11,611		$	12,290		$	11,605		$	10,938
EBITDA	$	10,912		$	14,272		$	17,647		$	18,937		$	14,445		$	14,509		$	14,343		$	12,183
Enterprise Value Calculation:
Number of Fully Diluted Shares(2)		3,726,496			3,726,591			4,090,175			3,507,311			3,090,292			2,829,614			2,788,234			2,951,079
Share Price on 12/31(3)	$	7.00		$	8.38		$	6.25		$	6.50		$	2.38		$	3.00		$	3.75		$	4.25
Equity Value	$	26,085		$	31,210		$	25,564		$	22,798		$	7,339		$	8,489		$	10,456		$	12,542
Plus: Net Debt(4)	$	16,230		$	21,749		$	24,521		$	47,927		$	45,583		$	36,965		$	33,332		$	31,072
Enterprise Value	$	42,315		$	52,960		$	50,085		$	70,725		$	52,923		$	45,454		$	43,788		$	43,614

Note:
(1)	Depreciation and Amortization in FY 1989-1993 are from the Income Statement. For all subsequent periods, Depreciation and Amortization are from the Statement of Cash Flows.
(2)	Fully Diluted Shares in FY 1989-1992 are calculated by dividing Pro Forma Net Income by Pro Forma Net Income per Share.
(3)	Assumes Share Price on 12/31 in FY 1989-1993 is equal to average Share Price for all subsequent periods.
(4)	Assumes Net Debt in FY 1989-1992 is equal to Net Debt in FY 1993. Assumes Cash balance in FY 1989-1993 is equal to Cash balance in FY 1993.

Confidential — not for duplication.

8

B. OVERVIEW OF PROJECT TIGERS

Project Tigers’ Closing Stock Price
(Since IPO)

Note: Source: Bloomberg LP.

Confidential — not for duplication.

9

II. VALUATION ANALYSIS

Confidential — not for duplication.

10

A. SUMMARY ANALYSIS

We utilized four approaches to estimate the value of Project Tigers, including: (i) Comparable Public Company Analysis; (ii) Comparable M&A Transactions Analysis; (iii) Discounted Cash Flow (“DCF”) Analysis; (iv) Leveraged Buyout (“LBO”) Analysis and (v) Comparable Going Private Transaction Premium Paid Analysis. In addition, we analyzed comparable going private transactions from May 2000 to the present.

In this section, we discuss each analysis individually and derive implied share prices for Project Tigers based on each analysis.

Summary Valuation Analysis
($ in millions, except per share data)

Implied Enterprise Value
Analysis	Mean		Median
Comparable Public Company	$	55.8	$	56.1
Comparable M&A Transactions	$	62.0	$	65.8
Discounted Cash Flow	$	50.3	$	57.6
Leveraged Buyout	$	52.9	$	50.7
Premium Paid	$	56.4	$	56.1

Implied Equity Value
Analysis	Mean		Median
Comparable Public Company	$	22.8	$	23.2
Comparable M&A Transactions	$	29.0	$	32.8
Discounted Cash Flow	$	17.3	$	24.6
Leveraged Buyout	$	19.9	$	17.7
Premium Paid	$	23.4	$	23.1

Implied Share Price Value
Analysis	Mean		Median
Comparable Public Company	$	7.74	$	7.85
Comparable M&A Transactions	$	9.82	$	11.13
Discounted Cash Flow	$	5.86	$	8.34
Leveraged Buyout	$	6.75	$	6.00
Premium Paid	$	7.94	$	7.82

Note:

In each valuation analysis we assumed that the number of diluted shares outstanding equals 2,951,079.

Confidential — not for duplication.

11

C. COMPARABLE PUBLIC COMPANY ANALYSIS

o A comparable public company analysis reviews, analyzes and compares publicly available financial data and stock market performance data of publicly traded companies in the same or similar business as the Company. We compared the performance of these selected public companies and their implied multiples to Project Tigers’ financial results. This analysis illustrates how financial markets may value businesses in the same economic and market environment based on varying financial performance.

o Typically, we review enterprise value as a multiple of EBITDA and EBIT and equity value as a multiple of 2004(E) earnings per share and book value. Results of these analyses led us to select EBITDA analysis and 2004(E) earnings per share analysis as most comparable to Project Tigers.

Confidential — not for duplication.

12

C. COMPARABLE PUBLIC COMPANY ANALYSIS

o We selected nine publicly traded truckload companies that we considered most comparable to Project Tigers.

• We eliminated three potential comparable public companies — (1) Landstar System, Inc. (Nasdaq: LSTR); (2) Swift Transportation Co., Inc. (Nasdaq: SWFT); and (3) Werner Enterprises, Inc. (Nasdaq: WERN) — because of market capitalization and scope differences. All three excluded companies have a market capitalization greater than $1 billion. The rest of the comparable companies have equity market capitalizations under $300 million, creating an illiquidity discount in trading multiples. Since Landstar, Swift and Werner are actively traded, no discount is applied to their multiples. The three excluded companies also have a dense nationwide scope that does not fit Project Tigers’ scope.

• While we determined that Celadon Group, Inc. (Nasdaq: CLDN), Covenant Transport, Inc. (Nasdaq: CVTI), Frozen Food Express Industries, Inc. (Nasdaq: FFEX), Marten Transport, Ltd. (Nasdaq: MRTN), P.A.M. Transportation Services, Inc. (Nasdaq: PTSI), Smithway Motor Xpress, Inc. (Nasdaq: SMXC), Transport Corporation of America, Inc. (Nasdaq: TCAM), USA Truck, Inc. (Nasdaq: USAK) and U.S. Xpress Enterprises, Inc. (Nasdaq: XPRSA) were the most appropriate comparable public companies, there is no direct public comparable company for Project Tigers.

o The closest public comparable companies are Frozen Food Express Industries, Inc. (Nasdaq: FFEX), Smithway Motor Xpress, Inc. (Nasdaq: SMXC) and Transport Corporation of America, Inc. (Nasdaq: TCAM). These companies, like Project Tigers, are characterized by:

• Lack of research analyst coverage

• Low trading volume

• Small market capitalization

Confidential — not for duplication.

13

C. COMPARABLE PUBLIC COMPANY ANALYSIS

Summary Comparison of Operating and Valuation Data for Selected Companies within the Trucking Industry
($ in millions, except per share data)

Equity value as a multiple of

Price

Diluted

Market

Total

Cash &

CY EPS

Book

Company name (Ticker)

Rating

12/10/03

S/O

cap.

Debt

equiv.

TEV(a)

2000A

2001A

2002A

2003E(b)

2004E(b)

value

Celadon Group (CLDN)

NR

14.28

8.1

115.2

67.5

0.9

181.9

NM

NM

38.6x

25.8x

16.5x

2.2x

Covenant Transport (CVTI)

NR

18.81

14.8

278.1

44.7

1.8

320.9

22.9x

NM

24.4x

22.7x

15.9x

1.5x

Frozen Food Express Industries (FFEX)

NR

6.01

17.0

102.1

8.0

2.3

107.9

NM

NM

31.6x

NA

NA

1.3x

Marten Transport (MRTN)

B/2

16.15

9.6

155.1

31.4

30.7

155.8

12.9x

15.7x

17.7x

11.1x

10.8x

1.1x

P.A.M. Transportation Svcs. (PTSI)

NR

20.47

11.3

231.2

25.0

10.3

245.9

20.1x

17.3x

13.2x

18.0x

15.5x

1.5x

Smithway Motor Xpress (SMXC)

NR

1.48

3.8

5.7

41.1

30.4

16.4

NM

NM

NM

NA

NA

0.3x

Transport Corp. of America (TCAM)

NR

7.22

7.2

52.3

68.1

0.1

120.3

15.7x

NM

NM

NM

18.1x

0.9x

USA Truck (USAK)

NR

10.45

9.4

98.1

72.4

1.8

168.7

NM

NM

37.3x

26.8x

12.9x

1.3x

U.S. Xpress Enterprises (XPRSA)

NR

12.28

14.2

174.0

150.7

6.1

318.6

NM

NM

51.2x

22.7x

15.5x

1.1x

Min

5.7

8.0

0.1

16.4

12.9x

15.7x

13.2x

11.1x

10.8x

0.3x

Mean

134.6

56.5

9.4

181.8

17.9x

16.5x

30.6x

21.2x

15.0x

1.2x

Median

115.2

44.7

2.3

168.7

17.9x

16.5x

31.6x

22.7x

15.5x

1.3x

Max

278.1

150.7

30.7

320.9

22.9x

17.3x

51.2x

26.8x

18.1x

2.2x

Boyd Bros. Transportation (BOYD)

NR

5.71

3.0

16.85

33.7

0.7

49.8

NM

NM

33.6x

NA

NA

0.6x

	Enterprise value as a multiple of
	TTM		TTM		TTM		TTM			TTM			TTM			PEG
Company name (Ticker)	Revenue		EBITDA		EBIT		ROA			ROE			ROIC			ratio(c)
Celadon Group (CLDN)		0.5x		6.8x		14.3x		2.3	%		7.6	%		5.0	%		1.27
Covenant Transport (CVTI)		0.6x		4.5x		11.5x		3.4	%		6.5	%		5.4	%		1.33
Frozen Food Express Industries (FFEX)		0.3x		6.2x		39.3x		4.2	%		7.5	%		6.8	%	NA
Marten Transport (MRTN)		0.5x		3.4x		9.8x		3.9	%		8.2	%		6.4	%		0.98
P.A.M. Transportation Svcs. (PTSI)		0.9x		4.9x		10.1x		5.7	%		9.4	%		8.6	%		0.91
Smithway Motor Xpress (SMXC)		0.1x		1.8x		-1.6x		-8.0	%		-30.1	%		-20.3	%	NA
Transport Corp. of America (TCAM)		0.5x		4.6x	NM			-1.2	%		-3.8	%		0.3	%	NA
USA Truck (USAK)		0.6x		4.3x		18.5x		1.4	%		3.7	%		2.6	%		0.86
U.S. Xpress Enterprises (XPRSA)		0.3x		5.2x		13.3x		1.5	%		4.1	%		3.7	%		0.71
Min		0.1x		1.8x		-1.6x		-8.0	%		-30.1	%		-20.3	%		0.86
Mean		0.5x		4.6x		14.4x		1.5	%		1.4	%		2.0	%		1.01
Median		0.5x		4.6x		12.4x		2.3	%		6.5	%		5.0	%		0.95
Max		0.9x		6.8x		39.3x		5.7	%		9.4	%		8.6	%		1.33
Boyd Bros. Transportation (BOYD)		0.4x		4.1x		40.0x		-0.1	%		-0.4	%		1.0	%	NA

Note:
Source: Company data , First Call, and Legg Mason Research estimates.
(a)	Total Debt does not include capital leases.
(b)	Total Enterprise Value = Market Capitalization of Equity + Total Debt - Cash + Market Value of Minority Interest. Total debt does not included leases.
(c)	Legg Mason estimates for those rated and First Call mean estimates for unrated securities.
(d)	2004E P/E divided by First Call mean 3-5 year growth rate.
Excludes non-recurring items.
Calculations may vary due to rounding.

Confidential — not for duplication.

14

C. COMPARABLE PUBLIC COMPANY ANALYSIS

Comparable Public Company Analysis Summary – EBITDA
($ in millions, except per share data)

	Mean		Median
Implied Enterprise Value	$	59.4	$	59.4
Implied Equity Value	$	26.4	$	26.4
Implied Share Price	$	8.94	$	8.94

Comparable Public Company Analysis Summary – 04’ Estimated Net Income
($ in millions, except per share data)

	Mean		Median
Implied Enterprise Value	$	52.3	$	52.9
Implied Equity Value	$	19.3	$	19.9
Implied Share Price	$	6.54	$	6.75

Note:

Comparable Public Company Analysis based on: (a.) a range of EBITDA multiples between 4.6x to 4.6x and (b.) 04’ Estimated Net Income multiples between 15.0x to 15.5x.

Confidential — not for duplication.

15

D. COMPARABLE M&A TRANSACTIONS ANALYSIS

o A comparable M&A transactions analysis reviews and analyzes similar transactions, and the resulting implied enterprise value multiples, involving companies in the same or similar business as the Company. We utilized this analysis for Project Tigers, and we analyzed the acquisitions of publicly traded and privately held targets and applied the range of multiples of these transactions to the financial results of Project Tigers.

o In this analysis, we identified 20 M&A transactions. However, each of the transactions identified has characteristics that differentiate it from Project Tigers. We selected nine transactions that were most comparable to Project Tigers.

Confidential — not for duplication.

16

D. COMPARABLE M&A TRANSACTIONS ANALYSIS

Comparison Multiples for Selected Transactions within the Trucking Industry
($ in millions, January 1, 1998 — August 31, 2003)

				Valuation				Target Company Parameters
Date	Target	Type of	Target	Equity		Enterprise		LTM		LTM		LTM		Book
Effective	Acquiror	Consideration	Status	Value		Value		Revenue		EBITDA		EBIT		Value
NA	Roadway Corp.	Cash &	Public	$	956.4	$	1,101.0	$	3,251.4	$	189.1	$	111.1	$	418.1
	acq. by Yellow Corp.	Stock
8/21/03	Highway Express, Inc.	NA	Private	NA		NA		$	27.0	NA		NA		NA
	acq. by Celadon Group, Inc.
8/15/03	Ground Operations of Airborne, Inc.	Cash	Subsidiary	$	1,005.0	NA		NA		NA		NA		NA
	acq. by DHL
7/30/03	Roadrunner Freight Systems Inc.	Cash	Private	NA		NA		NA		NA		NA		NA
	acq. by American Capital Strategies
1/24/03	Arnold Transportation Services	Cash	Subsidiary	$	55.0	$	55.0	$	171.0	NA		NA		NA
	acq. by A Consortium of Investors
1/6/03	Service Transport, Inc.	Cash	Private	$	28.0	$	28.0	NA		NA		NA		NA
	acq. by American Capital Strategies Ltd.
11/30/01	Arnold Industries	Cash	Public	$	548.0	$	510.5	$	450.7	$	82.6	$	49.8	$	291.3
	acq. by Roadway Corporation
11/28/01	Motor Cargo Industries, Inc.	Cash &	Public	$	83.1	$	78.6	$	138.6	$	19.4	$	10.7	$	62.2
	acq. by Union Pacific Corporation	Stock
8/1/01	G.I. Trucking Company	Cash	Public	$	40.0	$	40.0	$	139.4	$	5.0	$	0.8	$	0.0
	acq. by A Consortium of Investors
7/2/01	MS Carriers, Inc.	Cash &	Public	$	367.8	$	615.5	$	712.6	$	106.6	$	37.6	$	218.6
	acq. by Swift Transportation	Stock
2/12/01	American Freightways Corporation	Cash &	Public	$	935.4	$	1,197.5	$	1,352.6	$	189.3	$	126.9	$	365.2
	acq. by FedEx Corp.	Stock
8/31/00	Trans-Consolidated, Inc.	Cash	Private	NA		NA		NA		NA		NA		NA
	acq. by C.H. Robinson Worldwide Inc.
7/6/00	KLLM Transport Services, Inc.	Cash	Public	$	33.0	$	80.0	$	236.9	$	20.1	$	1.3	$	50.0
	acq. by High Road Acquisition, Inc.
11/1/99	CARCO Carrier Corp.	Cash	Private	$	8.1	$	35.3	$	66.7	$	9.3	$	1.0	$	0.3
	acq. by USA Truck, Inc.
8/27/99	Mark VII, Inc.	Cash &	Public	$	206.1	$	206.0	$	760.0	$	20.5	$	18.2	$	47.1
	acq. by Ocean Group plc / MSAS Global	Stock
	Logistics Inc.
8/11/99	Zipp Express, Inc.	Cash	Private	$	25.7	$	34.6	$	39.7	$	6.6	$	4.4	$	8.3
	acq. by Celadon Group, Inc.
8/2/99	R&M Enterprises / MDR Cartage, Inc.	Cash &	Private	$	26.1	$	41.9	$	45.1	$	7.4	$	2.6	$	9.3
	/ BF Transportation, Inc.	Stock
	acq. by Transit Group, Inc.
8/2/99	Bestway Trucking, Inc.	Cash &	Private	$	14.7	$	45.8	$	42.7	$	9.0	$	3.6	$	4.7
	acq. by Transit Group, Inc.	Stock
7/8/99	Jevic Transportation, Inc.	Cash &	Public	$	147.7	$	187.0	$	237.1	$	33.4	$	17.8	$	77.9
	acq. by Yellow Corporation	Stock
1/27/98	Caliber System Inc.	Cash &	Public	$	2,452.9	$	2,174.2	$	2,736.0	$	191.8	$	51.9	$	490.9
	acq. by FedEx Corp.	Stock

Equity Val. Mult. of:

Enterprise Value Multiple of:

Date

Target

Net

Book

LTM

LTM

LTM

Total

Effective

Acquiror

Income

Value

Revenues

EBITDA

EBIT

Assets

NA

Roadway Corp.

18.9x

2.3x

0.3x

5.8x

9.9x

0.9x

acq. by Yellow Corp.

8/21/03

Highway Express, Inc.

NA

NA

NA

NA

NA

NA

acq. by Celadon Group, Inc.

8/15/03

Ground Operations of Airborne, Inc.

NA

NA

NA

NA

NA

NA

acq. by DHL

7/30/03

Roadrunner Freight Systems Inc.

NA

NA

NA

NA

NA

NA

acq. by American Capital Strategies

1/24/03

Arnold Transportation Services

NA

NA

0.3x

NA

NA

NA

acq. by A Consortium of Investors

1/6/03

Service Transport, Inc.

NA

NA

NA

NA

NA

NA

acq. by American Capital Strategies Ltd.

11/30/01

Arnold Industries

15.5x

1.9x

1.1x

6.2x

10.2x

1.4x

acq. by Roadway Corporation

11/28/01

Motor Cargo Industries, Inc.

12.0x

1.3x

0.6x

4.0x

7.4x

0.9x

acq. by Union Pacific Corporation

8/1/01

G.I. Trucking Company

NA

NA

0.3x

8.0x

48.8x

0.8x

acq. by A Consortium of Investors

7/2/01

MS Carriers, Inc.

30.5x

1.7x

0.9x

5.8x

16.4x

1.0x

acq. by Swift Transportation

2/12/01

American Freightways Corporation

14.1x

2.6x

0.9x

6.3x

9.4x

1.4x

acq. by FedEx Corp.

8/31/00

Trans-Consolidated, Inc.

NA

NA

NA

NA

NA

NA

acq. by C.H. Robinson Worldwide Inc.

7/6/00

KLLM Transport Services, Inc.

NMF

0.7x

0.3x

4.0x

60.7x

0.6x

acq. by High Road Acquisition, Inc.

11/1/99

CARCO Carrier Corp.

NMF

26.5x

0.5x

3.8x

34.8x

0.8x

acq. by USA Truck, Inc.

8/27/99

Mark VII, Inc.

19.1x

4.4x

0.3x

10.0x

11.3x

1.7x

acq. by Ocean Group plc / MSAS Global Logistics Inc.

8/11/99

Zipp Express, Inc.

7.1x

3.1x

0.9x

5.3x

7.8x

1.6x

acq. by Celadon Group, Inc.

8/2/99

R&M Enterprises / MDR Cartage, Inc. /

18.5x

2.8x

0.9x

5.7x

15.9x

1.3x

BF Transportation, Inc.

acq. by Transit Group, Inc.

8/2/99

Bestway Trucking, Inc.

15.1x

3.1x

1.1x

5.1x

12.8x

1.1x

acq. by Transit Group, Inc.

7/8/99

Jevic Transportation, Inc.

15.3x

1.9x

0.8x

5.6x

10.5x

1.1x

acq. by Yellow Corporation

1/27/98

Caliber System Inc.

NMF

5.0x

0.8x

11.3x

41.9x

1.6x

acq. by FedEx Corp.

Min

7.1x

0.7x

0.3x

3.8x

7.8x

0.6x

Mean

13.6x

7.2x

0.7x

4.8x

26.4x

1.1x

Median

15.1x

3.1x

0.7x

5.1x

15.9x

1.1x

Max

18.5x

26.5x

1.1x

5.7x

60.7x

1.6x

Note:

Non-shaded transactions excluded from min, mean, median and max calculations.

Confidential — not for duplication.

17

D. COMPARABLE M&A TRANSACTIONS ANALYSIS

Project Tigers

Summary Business Descriptions for Selected M&A Transactions within the Trucking Industry

Date
Effective	Acquiror		Target
NA	Yellow Corp.		Roadway Corp.
		Yellow Corp. a holding company that, through wholly owned operating subsidiaries, offers its customers a wide range of asset and nonasset-based transportation services integrated by technology. The Company’s largest operating unit, Yellow Transportation, offers a full range of services for the movement of industrial, commercial, and retail goods. Yellow Transportation provides services by moving shipments through its regional, national and international networks of terminals, utilizing primarily ground transportation equipment that the Company owns or leases.		Roadway Corp. is a holding company with two primary operating entities, Roadway Express, Inc. (REX) and Roadway Next Day Corporation. REX is the primary operating subsidiary of the Company. REX and its subsidiaries provide long-haul less-than- truckload freight services on city-to-city routes (lanes) in North America, and on international lanes to and from North America.
8/21/03	Celadon Group, Inc.		Highway Express, Inc.
		Celadon Group, Inc. is a truckload carrier in North America. The Company provides and arranges for long-haul, point-to-point, time-sensitive and full-truckload transport of goods between the United States, Canada and Mexico. The principal types of freight transported include automotive parts, paper products, manufacturing parts, semi-finished products, textiles, appliances, retail and toys. Celadon delivers its services through a network of owned and leased tractors, and, to a lesser extent, independent owner-operators.		Highway Express is a truckload carrier based in Richmond, Virginia.

Confidential — not for duplication.

18

D. COMPARABLE M&A TRANSACTIONS ANALYSIS

Project Tigers

Summary Business Descriptions for Selected M&A Transactions within the Trucking
Industry

Date
Effective	Acquiror		Target
8/15/03	DHL		Airborne, Inc. — Ground Operations
		DHL is the world’s leading express and logistics company offering customers innovative and customized solutions from a single source. With global expertise in solutions, express, air and ocean freight and overland transport, DHL combines worldwide coverage with an in-depth understanding of local markets. DHL’s international network links over 120,000 destinations in more than 220 countries and territories, and employs 71,000 people, over 10,000 of which are based in the U.S. Total revenues in 2002 accounted for $1,046 million in the U.S., and approximately $5.8 billion worldwide. DHL is majority owned by Deutsche Post World Net.		Airborne, Inc. is the holding company for Airborne Express. Airborne offers total distribution solutions by providing customers time-sensitive delivery of documents, letters, small packages, and freight to virtually every U.S. ZIP code and more than 200 countries. Customers can select from a variety of services including same-day, next-morning, next-afternoon or second-day delivery, air freight, ocean service, and logistics management. Airborne employs over 22,000 people worldwide and achieved total revenues of $3,348 million in 2002.
7/30/03	American Capital Strategies		Roadrunner Freight Systems Inc.
		American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $1.8 billion. American Capital is an equity partner in management and employee buyouts; invests in private equity sponsored buyouts, and provides capital directly to private and small public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions and recapitalizations.		Roadrunner Freight Systems Inc. is an inter-regional freight services company that consolidates less-than-truckload shipments into full truckloads, minimizing the need for intermediate handling. The company operates a network of nine terminals in Milwaukee, Chicago, Dallas, Atlanta, Nashville, Charlotte, Los Angeles, Cincinnati and Cleveland, employs approximately 400 and has annual sales of over $125 million.
1/24/03	A Consortium of Investors		Arnold Transportation Services
		Group includes a management group led by Michael S. Walters, the unit’s president and chief executive officer and private equity firm, Jefferies Capital Partners.		Arnold Transportation Services is an irregular route and dedicated truckload motor carrier headquartered in Jacksonville, FL, specializing in short-haul regional operations. The Company utilizes over 800 company-owned tractors, 500 owner-operators and 4,200 trailers to provide service in the Northeast, Southeast, Midwest and Southwest regions of the United States.

Confidential — not for duplication.

19

D. COMPARABLE M&A TRANSACTIONS ANALYSIS

Project Tigers

Summary Business Descriptions for Selected M&A Transactions within the Trucking Industry

Date
Effective	Acquiror		Target
1/6/03	American Capital Strategies Ltd.		Service Transport, Inc.
		American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $1.5 billion. American Capital is an equity partner in management and employee buyouts; invests in private equity sponsored buyouts, and provides capital directly to private middle-market and small public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions and recapitalizations.		Headquartered in Cookeville, TN, Service Transport is one of the 50 largest regional LTL carriers in the United States. A family-owned company founded in 1979, Service Transport grew to encompass a network including 10 contiguous Midwest and Southeastern states plus service to Southern California. The Company has built a highly diversified customer base in a wide array of industries.
11/30/01	Roadway Corporation		Arnold Industries
		The Company is a holding company with two primary operating entities, Roadway Express, Inc. (REX) and Roadway Next Day Corporation. REX is the primary operating subsidiary of the Company. REX and its subsidiaries provide long-haul less-than-truckload freight services on city-to-city routes (lanes) in North America, and on international lanes to and from North America.		The Company assembles and delivers truckload and less than truckload shipments for contract customers.
11/28/01	Union Pacific Corporation		Motor Cargo Industries, Inc.
		The Company is comprised of three operating companies including the railroad, Overnite Transportation, a nationwide less-than-truckload carrier, and Fenix, a group of affiliated technology companies.		A less-than-truckload carrier that provides transportation and logistics services to shippers primarily in the western region of the United States.
8/1/01	A Consortium of Investors		G.I. Trucking Company
		Senior Management from G.I. and Estes Express Lines.		G.I. Trucking is one of the five largest Western states-based non-union regional LTL motor carrier. G.I. Trucking offers one to three-day regional service through a network of 33 terminals and 37 agent partners in 15 Western and Southwestern states including Hawaii and Alaska.

Confidential — not for duplication.

20

D. COMPARABLE M&A TRANSACTIONS ANALYSIS

Project Tigers

Summary Business Descriptions for Selected M&A Transactions within the Trucking Industry

Date
Effective	Acquiror		Target
7/2/01	Swift Transportation		MS Carriers, Inc.
		The largest publicly-held, truckload carrier in the United States. Swift operates primarily throughout the continental United States, combining strong regional operations with a transcontinental van operation. The principal types of freight transported by Swift include retail and discount department store merchandise, manufactured goods, paper products, non-perishable food, beverages and beverage containers and building materials.		A transportation company primarily engaged in the hauling of truckload shipments of general commodities throughout the United States and the provinces of Quebec and Ontario in Canada.
2/12/01	FedEx Corp.		American Freightways Corporation
		Comprised of a family of companies, providing transportation and logistics solutions for customers. The company provides express transportation, ground small-package delivery, surface expedited carrying service, contract logistics, and regional freight cars.		A scheduled for hire carrier of less-than-truckload shipments of general commodities.
8/30/00	C.H. Robinson Worldwide Inc.		Trans-Consolidated, Inc.
		C.H. Robinson Worldwide, Inc. (Robinson) is a third-party logistics company in North America. The Company is a global provider of multimodal transportation services and logistics solutions through a network of 139 offices in 40 states, as well as in Canada, Mexico, Europe and South America.		The firm is a third party logistics company specializing in refrigerated less than truckload services for perishable food manufacturers.
7/6/00	High Road Acquisition, Inc.		KLLM Transport Services, Inc.
		A company formed by the heads of KLLM Transport Services and Worldcom Inc.		Holding company with subsidiaries which transport truckload quantities of various commodities, specialize in temperature controlled shipments.

Confidential — not for duplication.

21

D. COMPARABLE M&A TRANSACTIONS ANALYSIS

Project Tigers

Summary Business Descriptions for Selected M&A Transactions within the Trucking Industry

Date
Effective	Acquiror		Target
11/1/99	USA Truck, Inc.		CARCO Carrier Corp.
		Medium-haul, common, and contract carrier.		Medium-haul, common, and contract carrier.
8/27/99	Ocean Group plc / MSAS Global Logistics Inc.		Mark VII, Inc.
		Engaged in the provision of transportation services.		Transporter of general products.
8/11/99	Celadon Group, Inc.		Zipp Express, Inc.
		Provides long-haul and truckload transportation and international freight services.		A major carrier to and from Mexico as well as strong business in the Midwest; operates roughly 270 tractors and 800 trailers.
8/2/99	Transit Group, Inc.		R&M Enterprises / MDR Cartage, Inc. / BF Transportation, Inc.
		Holding company that acquires and consolidates short, medium, and long haul trucking companies, principally truck carriers.		Three small carriers with a combined total of 467 tractors and 1088 trailers.
8/2/99	Transit Group, Inc.		Bestway Trucking, Inc.
		Holding company that acquires and consolidates short, medium, and long haul trucking companies, principally truck carriers.		A truckload common carrier operating a fleet consisting of 300 power units and 775 trailers. Concentrates on short hauls in the South, Northeast and Central U.S.
7/8/99	Yellow Corporation		Jevic Transportation, Inc.
		Operates through its subsidiaries which provide national, regional, and international less-than-truckload transportation.		Provides truck-load and less than truck-load shipping services.
1/27/98	FedEx Corp.		Caliber System Inc.
		Comprised of a family of companies, providing transportation and logistics solutions for customers. The company provides express transportation, ground small-package delivery, surface expedited carrying service, contract logistics, and regional freight cars.		Holding company with subsidiaries which provide common carrier interstate transportation services; provide contract logistics services; and operate terminals and hub facilities.

Confidential — not for duplication.

22

D. COMPARABLE M&A TRANSACTIONS ANALYSIS

Comparable M&A Transaction Analysis Summary – EBITDA
($ in millions, except per share data)

	Mean		Median
Implied Enterprise Value	$	62.0	$	65.8
Implied Equity Value	$	29.0	$	32.8
Implied Share Price	$	9.82	$	11.13

Note:
Comparable M&A Transactions Analysis based on a range of EBITDA multiples between 4.8x to 5.1x.

Confidential — not for duplication.

23

E. DISCOUNTED CASH FLOW ANALYSIS

o A discounted cash flow analysis (“DCF”) derives the value for a company that is equal to the present value of its future free cash flows plus the present value of the terminal value. A DCF valuation focuses on the future effects of existing business strategies on cash flows and deals specifically with a number of key factors, including revenue growth, profitability, reinvestment in fixed assets and working capital and the payment of all debt.

o In order to derive the discount rate used in the DCF, we calculated the Company’s weighted average cost of capital (“WACC”). WACC is the calculation of a firm’s cost of capital that is determined by weighting each category of capital proportionately then adding them together. Included in the WACC calculation are all capital sources including: common stock, preferred stock, bonds, and any other long term debt.

Confidential — not for duplication.

24

E. DISCOUNTED CASH FLOW ANALYSIS

A. Weighted Average Cost of Capital (“WACC”) Assumptions

Capital Asset Pricing Model

Cost of Equity

Cost of Debt

WACC

Weighted

Small and

Average

Specific

After-Tax

Cost of

Risk-Free

Market Risk

Company

Cost of

Cost of

Tax

Cost of

Capital

Rounded

Rate(1)

Premium(3)

Premium(4)

Equity(5)

Equity

Debt(6)

Rate(7)

Debt

Debt

(WACC)

WACC

(Rf)

Beta(2)

(Rm-Rf)

(Rs)

(Re)

Weighting

(Rd)

(T)

(Rd+Pr)

Weighting

(Rc)

(Rc)

4.32%

1.19

8.20

%

5.33

%

19.41

%

50.00

%

9.55

%

40.00

%

5.73

%

50.00

%

12.57

%

13.00

%

(1)	Represents the U.S. Govt 10-year Treasury bond as of December 10, 2003.
(2)	Represents 30 day average Beta as of December 10, 2003.
(3)	Source: Ibbotson Associates: Stocks, Bonds, Bills and Inflation: Yearbook 2002.
(4)	Source: Ibbotson Associates: Micro capitalization size premium (10th decile).
(5)	Derived through calculation of CAPM. Rf + Beta*(Rm — Rf) + Rs.
(6)	Represents the U.S. Govt 10-Year Treasury bond plus U.S. Industrial BB 10-Year as of December 10, 2003.
(7)	Assumes a 40% tax rate.

B. WACC Calculation

Cost of Equity	19.41	%
Weight	50.00	%
After-Tax Cost of Debt	5.73	%
Weight	50.00	%
Weighted Average Cost of Capital (WACC)	12.57	%
WACC – Rounded	13.00	%

Confidential — not for duplication.

25

E. DISCOUNTED CASH FLOW ANALYSIS

($ in millions)

A. Firm Value Assumption:

EBITDA	4.00	x
Terminal Multiples:	4.50	x
	5.00	x
Discount Rates:	12.0	%
	13.0	%
	14.0	%

B. Capitalization (Year 0):

Short-term Debt	$	12.96
Long-term Debt		20.74
Preferred Stock		—
Minority Interest		—
Total Debt		33.70
Less Cash & Equivalents		0.72
Net Debt:	$	32.99

C. Other Assumptions:

Tax Rate:		40.00	%
Initial Year		2003
Fiscal Year-Ended:	December 31

($ in millions)

	Year 1			Year 2			Year 3			Year 4			Year 5
CASH PROVIDED BY OPERATIONS:	2003			2004			2005			2006			2007
Adjusted Operating Income Before Amortization (EBITA)	$	7.3		$	4.4		$	5.1		$	6.3		$	7.5
Cash Taxes @ 40.0%		(2.2	)		(1.0	)		(1.3	)		(1.8	)		(2.3	)
Unlevered Net Income		5.2			3.4			3.8			4.5			5.2
+ Depreciation		5.6			11.1			11.0			11.0			11.1
+ Change in Deferred Taxes		0.0			0.0			0.0			0.0			(0.0	)
- Net Additions to Property, Plant and Equipment		(7.5	)		(16.7	)		(10.6	)		(11.1	)		(11.6	)
- Net Change in Non-cash Working Capital		(0.1	)		(0.2	)		(0.2	)		(0.3	)		(0.3	)
Total Cash Flow Provided By Operations	$	3.1			($2.4	)	$	4.0		$	4.1		$	4.3

Confidential — not for duplication.

26

E. DISCOUNTED CASH FLOW ANALYSIS

Net Present Value Analysis Summary
($ in millions)

A. Five Year Net Present Value Analysis

Confidential — not for duplication.

27

E. DISCOUNTED CASH FLOW ANALYSIS

Sensitivity Analysis Summary
($ in millions)

A. Five Year Sensitivity Analysis

Enterprise Value

Terminal Value Multiples of EBITDA

				4.00 x		4.25 x		4.50 x		4.75 x		5.00 x
	12.0	%	$	50.9	$	53.6	$	56.2	$	58.9	$	61.5
	12.5	%	$	49.9	$	52.5	$	55.0	$	57.6	$	60.2
Discount	13.0	%	$	48.8	$	51.4	$	53.9	$	56.4	$	58.9
Rate	13.5	%	$	47.8	$	50.3	$	52.8	$	55.2	$	57.7
	14.0	%	$	46.9	$	49.3	$	51.7	$	54.1	$	56.5

Implied Equity Value

Terminal Value Multiples of EBITDA

				4.00 x		4.25 x		4.50 x		4.75 x		5.00 x
	12.0	%	$	18.0	$	20.6	$	23.2	$	25.9	$	28.5
	12.5	%	$	16.9	$	19.5	$	22.1	$	24.6	$	27.2
Discount	13.0	%	$	15.9	$	18.4	$	20.9	$	23.4	$	25.9
Rate	13.5	%	$	14.9	$	17.3	$	19.8	$	22.3	$	24.7
	14.0	%	$	13.9	$	16.3	$	18.7	$	21.1	$	23.5

Confidential — not for duplication.

28

E. DISCOUNTED CASH FLOW ANALYSIS

Discounted Cash Flow Analysis Summary
($ in millions, except per share data)

	Low		High
Implied Enterprise Value	$	50.3	$	57.6
Implied Equity Value	$	17.3	$	24.6
Implied Share Price	$	5.86	$	8.34

Note:

Data relies on Company projections.

Discounted Cash Flow Analysis included, but were not limited to the following assumptions: (a.) range of discount rates from 12.0% to 14.0% and (b.) range of EBITDA multiples of 4.0x to 5.0x.

Confidential – not for duplication.

29

F. LEVERAGED BUYOUT ANALYSIS

o A leveraged buyout analysis (“LBO”) is a means of establishing the value of a company assuming that it was purchased by a financial buyer. An LBO analysis involves the acquisition or recapitalization of a company financed primarily by incurring debt that is serviced by the post-LBO operating cash flow of the company. We utilized the LBO analysis to value Project Tigers.

Confidential — not for duplication.

30

F. LEVERAGED BUYOUT ANALYSIS

Sources and Uses and Transaction Multiples Summaries
($ in millions)

A. Sources and Uses of Funds

Sources of Funds

	Amount		% Capitaliz.			Rate
Target Cash Available	$	0.7
Minimum Cash to Be Held		0.5
Excess Cash Available	$	0.2
Assumed Target Debt	$	33.7		62.6	%		3.60	%
Senior Notes		7.2		13.4	%		9.40	%
Common Equity: Sponsor A		1.0		1.9	%
Roll-over of Existing Equity		12.0		22.2	%
Total Capitalization	$	53.9		100.0	%
Total Sources	$	54.1

Uses of Funds

New Equity Financed Purchase	$	1.0
Company Financed Purchase		7.0
Roll-over of Existing Equity		12.0
Assumed Target Debt		33.7
Transaction Expenses @ 2.5%		0.5
Total Uses	$	54.1

B. Leveraged Buyout Assumptions

Total Value of Equity	$	19.9
% Shares Repurchased		40.0	%
Total Value of Repurchase	$	8.0
New Equity Financed		1.0
Company Financed	$	7.0
Value of Options & Warrants		—
Total Company Financed	$	7.0

C. Transaction Multiples (including fees)

	2002		2003
Revenue		0.42 x		0.41 x
EBITDA		3.8 x		4.2 x
EBIT		19.7 x		7.5 x

Note:

Leveraged Buyout Analysis assumes: (a.) $6.75 per share purchase price and (b.) acquires 40% of the fully diluted shares outstanding which are not already held by the Investor Group.

Confidential — not for duplication.

31

F. LEVERAGED BUYOUT ANALYSIS

Financial and Leverage Assumptions and Return Summaries
($ in millions)

A. Summary Financial and Leverage Assumptions

											Net Working										Total Debt /
	Revenues		% Growth			EBITDA		% Margin			Capital		% Sales			CapEx		% Sales			EBITDA
Year 0 - 2002	$	127.8		0.2	%	$	14.3		11.2	%	$	5.0		3.9	%	$	8.0		6.2	%		2.9x
Year 1 - 2003		131.4		2.8	%		12.9		9.8	%		5.2		3.9	%		7.5		5.7	%		3.1x
Year 2 - 2004		135.3		3.0	%		15.4		11.4	%		5.3		3.9	%		16.7		12.3	%		2.8x
Year 3 - 2005		140.7		4.0	%		16.1		11.4	%		5.5		3.9	%		10.6		7.5	%		2.6x
Year 4 - 2006		147.8		5.0	%		17.3		11.7	%		5.8		3.9	%		11.1		7.5	%		2.3x
Year 5 - 2007		155.2		5.0	%		18.6		12.0	%		6.1		3.9	%		11.6		7.5	%		2.0x
Year 6 - 2008		162.9		5.0	%		22.0		13.5	%		6.4		3.9	%		12.7		7.8	%		1.5x
Year 7 - 2009		171.1		5.0	%		23.1		13.5	%		6.7		3.9	%		13.3		7.8	%		1.2x
Year 8 - 2010		179.6		5.0	%		24.2		13.5	%		7.0		3.9	%		14.0		7.8	%		1.0x
Year 9 - 2011		188.6		5.0	%		25.5		13.5	%		7.4		3.9	%		15.1		8.0	%		0.8x
Year 10 - 2012		198.0		5.0	%		26.7		13.5	%		7.8		3.9	%		15.8		8.0	%		0.5x

B. Summary Returns

	Year 3 Exit							Year 5 Exit							Year 7 Exit
Terminal Multiple of EBITDA		4.00	x	4.50	x	5.00	x		4.00	x	4.50	x	5.00	x		4.00	x	4.50	x	5.00	x
Implied Forward EBITDA		3.71	x	4.18	x	4.64	x		3.38	x	3.80	x	4.22	x		3.81	x	4.29	x	4.76	x
Sponsor A IRR		21.4	%	34.0	%	44.7	%		24.3	%	29.8	%	34.5	%		25.8	%	28.8	%	31.4	%

C. Summary Share Price Year 5 Exit at 4.50x

Sponsor A IRR		30%		35%
Implied Share Price	$	6.75	$	6.00

Confidential — not for duplication.

32

F. LEVERAGED BUYOUT ANALYSIS

Leveraged Buyout Analysis Summary
($ in millions, except per share data)

	30% IRR		35% IRR
Implied Enterprise Value	$	52.9	$	50.7
Implied Equity Value	$	19.9	$	17.7
Implied Share Price	$	6.75	$	6.00

Note:

Data relies on Company projections.

Leveraged Buyout Analysis included, but were not limited to the following assumptions (a.) minimum return to financial sponsor of 20.0%; (b.) range of EBITDA multiples of 4.0x to 5.0x; and (c.) total debt to EBITDA not to exceed 2.9x.

Confidential — not for duplication.

33

G. COMPARABLE GOING PRIVATE TRANSACTIONS ANALYSIS

o A comparable going private transactions analysis is a means of estimating the appropriate range of premiums to Project Tigers’ common stock price that shareholders should receive in a going private transaction. We utilized the comparable going private transactions analysis to value Project Tigers’ equity.

Confidential — not for duplication.

34

G. COMPARABLE GOING PRIVATE TRANSACTIONS ANALYSIS

Comparable Going Private Premiums Paid Implied Valuation
(Includes Completed Going Private transactions, January 2001 to Current with Premia between 0% — 100%)
($ in millions)

				Parameters						Premium Paid
Announcement	Completion			Market		Enterprise		LTM
Date	Date	Acquiror	Target	Value		Value		Revenue		1 Day			1 Week			1 Month
05/12/03	10/31/03	Investor Group	Dwyer Group Inc	$	52.3	$	53.4	$	25.5		54.1	%		52.3	%		41.2	%
06/05/03	08/08/03	Battery Ventures VI LP	Made2Manage Systems Inc		30.4		13.9		30.1		31.9	%		38.5	%		33.5	%
05/28/03	08/19/03	Randeep Grewal	GREKA Energy Corp		32.4		90.7		32.3		44.4	%		41.0	%		51.9	%
05/13/03	08/15/03	Investor Group	Packaged Ice Inc		75.6		440.4		235.4		50.0	%		50.7	%		82.6	%
04/16/03	07/03/03	Investor Group	Lillian Vernon Corp		60.9		37.0		238.0		69.0	%		71.1	%		68.6	%
03/24/03	06/18/03	Management Group	The Judge Group Inc		14.2		15.3		80.8		50.0	%		41.9	%		50.0	%
03/13/03	07/18/03	CIVCO Holding Inc	Colorado MEDtech Inc		64.6		56.9		54.9		48.9	%		56.7	%		53.3	%
03/03/03	05/01/03	Kinkos Inc	ImageX Inc		16.1		3.9		34.9		15.0	%		21.1	%		21.1	%
02/21/03	05/05/03	Oaktree Capital Management LLC	Acorn Products Inc		16.7		38.5		91.2		20.7	%		6.3	%		21.2	%
02/18/03	07/23/03	CB Richard Ellis Inc	Insignia Financial Group Inc		280.3		315.3		735.6		16.1	%		18.0	%		24.5	%
01/31/03	03/18/03	BayCorp Holdings Ltd	BayCorp Holdings Ltd		125.6	NA			48.8		12.1	%		12.1	%		18.6	%
01/22/03	03/31/03	GTG Acquisition Corp	Resonate Inc		53.5	NA			12.5		5.0	%		3.8	%		8.0	%
12/24/02	03/26/03	Phillips Edison Ltd	Aegis Realty Inc		93.0		159.1		26.3		7.2	%		6.4	%		7.2	%
12/09/02	03/27/03	Amy Acquisition Corp	AmeriPath Inc		667.6		751.1		466.2		29.2	%		26.3	%		44.5	%
11/12/02	12/19/02	Berwind Co LLC	Hunt Corp		115.2		112.8		132.3		32.3	%		31.2	%		37.4	%
11/11/02	03/18/03	Investor Group	CoorsTek Inc		305.3		356.0		334.4		68.6	%		60.4	%		86.4	%
10/11/02	02/28/03	Investor Group	Landair Corp		96.2		99.4		102.5		25.0	%		31.0	%		26.2	%
10/01/02	02/07/03	Kelso & Co	BWAY Corp		186.0		266.5		527.6		43.9	%		44.9	%		38.9	%
09/26/02	01/15/03	CHL Holdings Corp	Interstate Natl Dealer Svcs		25.0		0.4		60.9		9.7	%		8.1	%		9.1	%
09/24/02	04/23/03	Prometheus Assisted Living LLC	ARV Assisted Living Inc		68.8		161.0		158.4		23.5	%		26.0	%		28.0	%

Note:
Source: SDC, Bloomberg LP and company filings.

Confidential — not for duplication.

35

G. COMPARABLE GOING PRIVATE TRANSACTIONS ANALYSIS

Comparable Going Private Premiums Paid Implied Valuation
(Includes Completed Going Private transactions, January 2001 to Current with Premia between 0% — 100%)
($ in millions)

				Parameters						Premium Paid
Announcement	Completion			Market		Enterprise		LTM
Date	Date	Acquiror	Target	Value		Value		Revenue		1 Day			1 Week			1 Month
09/23/02	03/28/03	David H Murdock	Dole Food Co Inc	$	1,920.4	$	2,375.3	$	4,211.6		36.8	%		32.7	%		18.0	%
09/19/02	03/17/03	MASB Inc	Viador Inc		3.9		2.4		5.3		50.0	%		50.0	%		7.1	%
09/06/02	01/02/03	Investor Group	Disc Graphics Inc		10.1		21.6		49.5		73.3	%		65.5	%		51.7	%
09/03/02	05/30/03	Sandata Acquisition Corp	Sandata Technologies Inc		4.9		6.5		17.2		21.6	%		21.6	%		39.0	%
08/07/02	07/29/03	Douglas H Miller	Exco Resources Inc		238.2		418.5		55.9		10.7	%		12.6	%		11.8	%
07/26/02	02/28/03	Samuel J Heyman	International Specialty Prods		674.9		1,074.1		834.3		4.3	%		1.7	%		33.8	%
06/12/02	11/15/02	Cornerstone Equity Investors	Vestcom International Inc		58.7		76.1		153.8		50.6	%		64.5	%		78.6	%
06/11/02	07/23/02	Intellimark Holdings Inc	Technisource Inc		42.8		30.0		134.8		43.4	%		48.1	%		73.9	%
04/18/02	02/21/03	Investor Group	Partsbase Inc		21.1	NA			6.8		36.4	%		44.2	%		94.8	%
04/13/02	01/09/03	Investor Group	Nortek Inc		563.6		1,547.0		1,959.8		23.0	%		28.9	%		21.4	%
04/11/02	07/31/02	Investor Group	Herbalife International Inc		726.7		529.7		1,040.2		26.8	%		30.6	%		37.5	%
02/20/02	03/22/02	SCC Contracting Inc	Sevenson Environmental Svcs		169.9		166.5		124.9		18.9	%		18.9	%		18.9	%
02/14/02	07/26/02	Investor Group	dick clark productions inc		150.4		132.2		61.5		30.8	%		47.4	%		47.4	%
02/13/02	05/15/02	Investor Group	Deltek Systems Inc		111.5		92.6		92.8		18.4	%		28.6	%		41.9	%
02/01/02	04/13/02	Ironbridge Acquisition Corp	Pitt-Des Moines Inc		272.2		79.9		143.5		7.6	%		8.8	%		10.9	%
01/22/02	03/06/02	Rottlund Co Inc	Rottlund Co Inc		53.6		96.9		261.4		18.1	%		27.1	%		32.8	%
12/18/01	02/28/02	Preserver Group Inc	Preserver Group Inc		16.5		23.6		99.2		36.0	%		45.7	%		29.2	%
11/16/01	03/04/02	Ernest C Garcia II	Ugly Duckling Corp		43.4		464.2		448.6		41.8	%		42.9	%		38.4	%
11/06/01	02/11/02	Investor Group	Leapnet Inc		10.9		10.5		35.6		5.7	%		5.7	%		33.1	%

Note:
Source: SDC, Bloomberg LP and company filings.

Confidential — not for duplication.

36

G. COMPARABLE GOING PRIVATE TRANSACTIONS ANALYSIS

Comparable Going Private Premiums Paid Implied Valuation
(Includes Completed Going Private transactions, January 2001 to Current with Premia between 0% — 100%)
($ in millions)

				Parameters						Premium Paid
Announcement	Completion			Market		Enterprise		LTM
Date	Date	Acquiror	Target	Value		Value		Revenue		1 Day			1 Week			1 Month
10/29/01	12/07/01	CalWest Industrial Ppty	Cabot Industrial Trust	$	993.9	$	1,896.6	$	231.9		20.3	%		18.5	%		15.7	%
10/25/01	05/31/02	SG Merger Corp	Ecometry Corp		33.7	NA			28.9		93.3	%		81.3	%		93.3	%
10/08/01	01/24/02	Investor Group	Blimpie International Inc		27.1		18.3		30.1		86.7	%		90.5	%		62.8	%
10/01/01	02/13/02	Investor Group	NCH Corp		280.4		262.5		672.8		34.0	%		33.6	%		18.8	%
09/10/01	02/11/02	Investor Group	American Coin Merchandising		59.0		106.0		136.7		42.6	%		45.5	%		39.3	%
08/09/01	01/03/02	Ameris Acquisition Inc	Children’s Comprehensive Svcs		44.2		63.1		131.7		39.9	%		31.9	%		36.4	%
08/01/01	01/18/02	Dwain Neumann	National Home Centers Inc		10.0		25.2		100.6		62.2	%		55.2	%		71.4	%
07/24/01	11/04/01	Investor Group	EA Engineering Science Tech		10.3		12.3		44.3		50.9	%		44.1	%		44.1	%
07/03/01	12/31/01	Investor Group	Electronic Retailing Sys Intl		5.6		21.8		5.1		85.7	%		85.7	%		52.9	%
06/11/01	02/22/02	Gameco Inc	Colonial Holdings Inc		36.1		36.3		30.9		75.0	%		55.6	%		49.3	%
06/06/01	12/13/01	Liberty Mutual Insurance Co	Liberty Financial Cos Inc		1,669.1		421.1		1,005.0		24.8	%		40.1	%		40.4	%
05/30/01	09/06/01	Bacou SA	Bacou USA Inc		515.5		571.9		322.3		21.8	%		17.3	%		11.3	%
05/22/01	12/21/01	Investor Group	Quizno’s Corp		26.0		53.4		48.7		28.4	%		30.1	%		28.7	%
05/17/01	09/28/01	SIRSI Corp	Data Research Associates Inc		50.0		40.9		27.7		86.1	%		86.1	%		87.4	%
04/27/01	02/22/02	Gameco Inc	Black Hawk Gaming & Dvlp Co		53.2		106.5		95.0		16.7	%		22.1	%		34.3	%
03/23/01	08/31/01	Investor Group	PJ America Inc		37.8		37.8		115.2		32.1	%		52.2	%		34.6	%
03/13/01	06/04/01	Investor Group	Roy F Weston Inc		59.2		58.3		270.3		7.1	%		11.6	%		13.1	%
02/20/01	09/06/01	Investor Group	Springs Industries Inc		841.6		1,221.2		2,252.3		27.4	%		22.7	%		33.3	%
02/15/01	05/14/01	Investor Group	VICORP Restaurants Inc		178.5		178.0		372.0		35.9	%		34.6	%		50.9	%

Note:
Source: SDC, Bloomberg LP and company filings.

Confidential — not for duplication.

37

G. COMPARABLE GOING PRIVATE TRANSACTIONS ANALYSIS

Comparable Going Private Premiums Paid Implied Valuation
(Includes Completed Going Private transactions, January 2001 to Current with Premia between 0% — 100%)
($ in millions)

				Parameters						Premium Paid
Announcement	Completion			Market		Enterprise		LTM
Date	Date	Acquiror	Target	Value		Value		Revenue		1 Day			1 Week			1 Month
01/24/01	03/25/02	Investor Group	NextHealth Inc	$	73.2	$	67.9	$	42.9		31.6	%		33.8	%		68.2	%
12/22/00	04/10/01	Investor Group	Michael Foods Inc		569.3		767.9		1,067.1		10.2	%		11.5	%		10.7	%
12/16/00	03/07/01	Rosemore Inc	Crown Central Petroleum Corp		106.0		231.4		1,785.2		33.3	%		25.4	%		23.5	%
11/16/00	07/17/01	Bruckmann Rosser Sherrill & Co	Il Fornaio America Corp		77.5		72.0		125.8		28.9	%		23.9	%		44.4	%
11/13/00	07/20/01	Investor Group	CB Richard Ellis Services		331.5		624.8		1,323.6		21.9	%		15.3	%		30.6	%
11/10/00	01/31/01	HCH Acquisition Corp	Holt’s Cigar Holding Inc		34.8		28.1		34.3		57.1	%		44.3	%		54.4	%
10/25/00	01/02/01	KC Holding Corp(ValueAct)	Kenetech Corp		33.3		10.8		2.1		46.5	%		46.5	%		42.5	%
10/25/00	07/31/01	Investor Group	Uno Restaurant Corp		113.1		168.9		238.4		33.3	%		60.8	%		43.1	%
05/10/00	01/05/01	Investor Group	GZA GeoEnvironmental Tech		24.5		17.5		44.8		2.4	%		0.4	%		13.8	%
			Min	$	3.9	$	0.4	$	2.1		2.4	%		0.4	%		7.1	%
			Mean		207.8		277.2		359.5		34.7	%		35.5	%		39.1	%
			Median		601		91.7		108.9		31.8	%		32.3	%		36.9	%
			Max		1,920.4		2,375.3		4,211.6		93.3	%		90.5	%		94.8	%

Note:
Source: SDC, Bloomberg LP and company filings.

Confidential — not for duplication.

38

G. COMPARABLE GOING PRIVATE TRANSACTIONS ANALYSIS

Comparable Going Private Premiums Paid Implied Valuation
(Includes Completed Going Private transactions, January 2001 to Current in which a minority interest was acquired)
($ in millions)

				Parameters									Premium Paid
Announcement	Completion			Market		Enterprise		LTM		% Interest
Date	Date	Acquiror	Target	Value		Value		Revenue		Acquired			1 Day			1 Week			1 Month
03/24/03	06/18/03	Management Group	The Judge Group Inc	$	14.2	$	15.3	$	80.8		40.0	%		50.0	%		41.9	%		50.0	%
10/11/02	02/28/03	Investor Group	Landair Corp		96.2		99.4		102.5		29.0	%		25.0	%		31.0	%		26.2	%
09/03/02	05/30/03	Sandata Acquisition Corp	Sandata Technologies Inc		4.9		6.5		17.2		30.0	%		21.6	%		21.6	%		39.0	%
07/26/02	02/28/03	Samuel J Heyman	International Specialty Prods		674.9		1,074.1		834.3		20.0	%		4.3	%		1.7	%		33.8	%
05/16/02	08/19/02	IPC Advisors SARL	Balanced Care Corp		8.5		118.7		56.3		46.7	%		150.0	%		177.8	%		150.0	%
04/18/02	06/21/02	Westminster Capital Inc	Westminster Capital Inc		22.8		17.2		25.3		19.6	%		38.5	%		48.9	%		49.7	%
12/18/01	02/28/02	Preserver Group Inc	Preserver Group Inc		16.5		23.6		99.2		47.1	%		36.0	%		45.7	%		29.2	%
11/16/01	03/04/02	Ernest C Garcia II	Ugly Duckling Corp		43.4		464.2		448.6		39.2	%		41.8	%		42.9	%		38.4	%
10/01/01	02/13/02	Investor Group	NCH Corp		280.4		262.5		672.8		45.7	%		34.0	%		33.6	%		18.8	%
09/18/01	01/14/02	Seneca Investments LLC	Organic Inc		29.4		13.7		90.4		19.3	%		13.8	%		17.9	%		-17.5	%
08/01/01	01/18/02	Dwain Neumann	National Home Centers Inc		10.0		25.2		100.6		36.5	%		62.2	%		55.2	%		71.4	%
07/03/01	12/31/01	Investor Group	Electronic Retailing Sys Intl		5.6		21.8		5.1		48.3	%		85.7	%		85.7	%		52.9	%
06/06/01	12/13/01	Liberty Mutual Insurance Co	Liberty Financial Cos Inc		1,669.1		421.1		1,005.0		30.0	%		24.8	%		40.1	%		40.4	%
05/22/01	12/21/01	Investor Group	Quizno’s Corp		26.0		53.4		48.7		32.0	%		28.4	%		30.1	%		28.7	%
05/09/01	07/26/02	Investor Group	Pierre Foods Inc		14.5		125.0		232.1		37.0	%		53.8	%		158.1	%		150.0	%
11/10/00	01/31/01	HCH Acquisition Corp	Holt’s Cigar Holding Inc		34.8		28.1		34.3		26.0	%		57.1	%		44.3	%		54.4	%
			Min	$	4.9	$	6.5	$	5.1		19.3	%		4.3	%		1.7	%		-17.5	%
			Mean		184.4		173.1		240.8		34.1	%		45.4	%		54.8	%		51.0	%
			Median		24.4		40.8		94.8		34.3	%		37.2	%		42.4	%		39.7	%
			Max		1,669.1		1,074.1		1,005.0		48.3	%		150.0	%		177.8	%		150.0	%

Note:
Source: SDC, Bloomberg LP and company filings.

Confidential — not for duplication.

39

G. COMPARABLE GOING PRIVATE TRANSACTIONS ANALYSIS

Comparable Going Private Premiums Paid Implied Valuation
(Includes Completed Going Private transactions, January 2001 to Current with Revenue less than $250 million in
which a minority interest was acquired)
($ in millions)

				Parameters									Premium Paid
Announcement	Completion			Market		Enterprise		LTM		% Interest
Date	Date	Acquiror	Target	Value		Value		Revenue		Acquired			1 Day			1 Week			1 Month
03/24/03	06/18/03	Management Group	The Judge Group Inc	$	14.2	$	15.3	$	80.8		40.0	%		50.0	%		41.9	%		50.0	%
10/11/02	02/28/03	Investor Group	Landair Corp		96.2		99.4		102.5		29.0	%		25.0	%		31.0	%		26.2	%
09/03/02	05/30/03	Sandata Acquisition Corp	Sandata Technologies Inc		4.9		6.5		17.2		30.0	%		21.6	%		21.6	%		39.0	%
05/16/02	08/19/02	IPC Advisors SARL	Balanced Care Corp		8.5		118.7		56.3		46.7	%		150.0	%		177.8	%		150.0	%
04/18/02	06/21/02	Westminster Capital Inc	Westminster Capital Inc		22.8		17.2		25.3		19.6	%		38.5	%		48.9	%		49.7	%
12/18/01	02/28/02	Preserver Group Inc	Preserver Group Inc		16.5		23.6		99.2		47.1	%		36.0	%		45.7	%		29.2	%
09/18/01	01/14/02	Seneca Investments LLC	Organic Inc		29.4		13.7		90.4		19.3	%		13.8	%		17.9	%		-17.5	%
08/01/01	01/18/02	Dwain Neumann	National Home Centers Inc		10.0		25.2		100.6		36.5	%		62.2	%		55.2	%		71.4	%
07/03/01	12/31/01	Investor Group	Electronic Retailing Sys Intl		5.6		21.8		5.1		48.3	%		85.7	%		85.7	%		52.9	%
05/22/01	12/21/01	Investor Group	Quizno’s Corp		26.0		53.4		48.7		32.0	%		28.4	%		30.1	%		28.7	%
05/09/01	07/26/02	Investor Group	Pierre Foods Inc		14.5		125.0		232.1		37.0	%		53.8	%		158.1	%		150.0	%
11/10/00	01/31/01	HCH Acquisition Corp	Holt’s Cigar Holding Inc		34.8		28.1		34.3		26.0	%		57.1	%		44.3	%		54.4	%
			Min	$	4.9	$	6.5	$	5.1		19.3	%		13.8	%		17.9	%		-17.5	%
			Mean		23.6		45.7		74.4		34.3	%		51.8	%		63.2	%		57.0	%
			Median		15.5		24.4		68.6		34.3	%		44.3	%		45.0	%		49.9	%
			Max		96.2		125.0		232.1		48.3	%		150.0	%		177.8	%		150.0	%

Note:
Source: SDC, Bloomberg LP and company filings.

Confidential — not for duplication.

40

G. COMPARABLE GOING PRIVATE TRANSACTIONS ANALYSIS

Comparable Going Private Premiums Paid Implied Valuation
(Includes Completed Going Private transactions, January 2001 to Current with Premia between 0% — 100%
in which a minority interest was acquired)
($ in millions)

				Parameters									Premium Paid
Announcement	Completion			Market		Enterprise		LTM		% Interest
Date	Date	Acquiror	Target	Value		Value		Revenue		Acquired			1 Day			1 Week			1 Month
03/24/03	06/18/03	Management Group	The Judge Group Inc	$	14.2	$	15.3	$	80.8		40.0	%		50.0	%		41.9	%		50.0	%
10/11/02	02/28/03	Investor Group	Landair Corp		96.2		99.4		102.5		29.0	%		25.0	%		31.0	%		26.2	%
09/03/02	05/30/03	Sandata Acquisition Corp	Sandata Technologies Inc		4.9		6.5		17.2		30.0	%		21.6	%		21.6	%		39.0	%
07/26/02	02/28/03	Samuel J Heyman	International Specialty Prods		674.9		1,074.1		834.3		20.0	%		4.3	%		1.7	%		33.8	%
04/18/02	06/21/02	Westminster Capital Inc	Westminster Capital Inc		22.8		17.2		25.3		19.6	%		38.5	%		48.9	%		49.7	%
12/18/01	02/28/02	Preserver Group Inc	Preserver Group Inc		16.5		23.6		99.2		47.1	%		36.0	%		45.7	%		29.2	%
11/16/01	03/04/02	Ernest C Garcia II	Ugly Duckling Corp		43.4		464.2		448.6		39.2	%		41.8	%		42.9	%		38.4	%
10/01/01	02/13/02	Investor Group	NCH Corp		280.4		262.5		672.8		45.7	%		34.0	%		33.6	%		18.8	%
08/01/01	01/18/02	Dwain Neumann	National Home Centers Inc		10.0		25.2		100.6		36.5	%		62.2	%		55.2	%		71.4	%
07/03/01	12/31/01	Investor Group	Electronic Retailing Sys Intl		5.6		21.8		5.1		48.3	%		85.7	%		85.7	%		52.9	%
06/06/01	12/13/01	Liberty Mutual Insurance Co	Liberty Financial Cos Inc		1,669.1		421.1		1,005.0		30.0	%		24.8	%		40.1	%		40.4	%
05/22/01	12/21/01	Investor Group	Quizno’s Corp		26.0		53.4		48.7		32.0	%		28.4	%		30.1	%		28.7	%
11/10/00	01/31/01	HCH Acquisition Corp	Holt’s Cigar Holding Inc		34.8		28.1		34.3		26.0	%		57.1	%		44.3	%		54.4	%
			Min	$	4.9	$	6.5	$	5.1		19.6	%		4.3	%		1.7	%		18.8	%
			Mean		223.0		193.3		267.3		34.1	%		39.2	%		40.2	%		41.0	%
			Median		26.0		28.1		99.2		32.0	%		36.0	%		41.9	%		39.0	%
			Max		1,669.1		1,074.1		1,005.0		48.3	%		85.7	%		85.7	%		71.4	%

Note:
Source: SDC, Bloomberg LP and company filings.

Confidential — not for duplication.

41

G. COMPARABLE GOING PRIVATE TRANSACTIONS ANALYSIS

Premium Paid Analysis Summary
($ in millions, except per share data)

	Premium to $5.71
	39.1%		36.9%
Implied Enterprise Value	$	56.4	$	56.1
Implied Equity Value	$	23.4	$	23.1
Implied Share Price	$	7.94	$	7.82

Note:
Premium Paid Analysis based on: (a.) a one month range of premiums paid between 39.1% to 36.9% and (b.) December 10, 2003 closing share price of $5.71.

Confidential — not for duplication.

42

ADDENDA A – Analysis of Project Tigers’ Relative Stock Performance

One Week Relative Stock Performance

Note:
Source: FactSet.

Confidential — not for duplication.

ADDENDA A – Analysis of Project Tigers’ Relative Stock Performance

One Month Relative Stock Performance

Note:
Source: FactSet.

Confidential — not for duplication.

ADDENDA A – Analysis of Project Tigers’ Relative Stock Performance

Three Months Relative Stock Performance

Note:
Source: FactSet.

Confidential — not for duplication.

ADDENDA A – Analysis of Project Tigers’ Relative Stock Performance

Six Months Relative Stock Performance

Note:
Source: FactSet.

Confidential — not for duplication.

ADDENDA A – Analysis of Project Tigers’ Relative Stock Performance

One Year Relative Stock Performance

Note:
Source: FactSet.

Confidential — not for duplication.

ADDENDA B – Analysis of Risk Free Rate

Risk Free Rate Analysis

Note:
Source: Bloomberg LP.

Confidential — not for duplication.

ADDENDA C – Analysis of Project Tigers’ Beta and Trading Volume

Project Tigers’ Historical Average Beta and Daily Trading Volume
(Average data as of December 10, 2003)

	1 Week		1 Month		3 Months		6 Months		1 Year
Average Beta		1.28		1.19		0.49		0.80		0.62
Average Daily
Trading Volume		4,197		4,664		3,486		2,521		2,045

Note:
Source: Bloomberg LP.

Confidential — not for duplication.

ADDENDA D – Legg Mason Transportation Comparable Companies

Legg Mason
Transportation Equity Comps
December 10, 2003

Comparative Valuation Matrix

(figures in $US millions, except per share amounts)

Equity value as a multiple of

CY EPS

Price

Diluted

Market

Total

Cash &

Book

Company name (Ticker)

Rating

12/10/03

S/O

cap.

Debt

equiv.

TEV(a)

2000A

2001A

2002A

2003E(b)

2004E(b)

value

Truckload

Celadon Group (CLDN)

NR

14.28

8.1

115.2

67.5

0.9

181.9

NM

NM

38.6x

25.8x

16.5x

2.2x

Covenant Transport (CVTI)

NR

18.81

14.8

278.1

44.7

1.8

320.9

22.9x

NM

24.4x

22.7x

15.9x

1.5x

Forward Air Corp. (FWRD)

H/1

26.83

21.6

578.3

1.0

76.7

502.7

29.0x

30.1x

29.2x

23.7x

21.1x

4.2x

Heartland Express (HTLD)

H/1

24.36

50.0

1,218.0

0.0

186.5

1,031.5

35.8x

32.5x

28.3x

23.9x

21.6x

3.9x

J.B. Hunt Transport Svcs. (JBHT)

H/2

26.01

85.1

2,214.5

204.7

93.2

2,313.1

51.0x

56.5x

39.4x

22.2x

17.3x

3.3x

Knight Transportation (KNGT)

H/2

24.30

38.2

929.1

12.2

44.8

896.5

45.8x

38.0x

33.3x

26.1x

22.5x

4.1x

Landstar System (LSTR)

H/2

38.00

31.3

1,189.7

104.6

63.7

1,230.6

29.9x

30.4x

25.9x

23.5x

20.4x

9.7x

Marten Transport (MRTN)

B/2

16.15

9.6

155.1

31.4

30.7

155.8

12.9x

15.7x

17.7x

11.1x

10.8x

1.1x

P.A.M. Transportation Svcs. (PTSI)

NR

20.47

11.3

231.2

25.0

10.3

245.9

20.1x

17.3x

13.2x

18.0x

15.5x

1.5x

Swift Transportation (SWFT)

H/2

20.20

86.5

1,747.6

406.1

15.3

2,138.4

24.6x

39.6x

25.9x

21.7x

16.6x

2.2x

Transport Corp. of America (TCAM)

NR

7.22

7.2

52.3

68.1

0.1

120.3

15.7x

NM

NM

NM

18.1x

0.9x

USA Truck (USAK)

NR

10.45

9.4

98.1

72.4

1.8

168.7

NM

NM

37.3x

26.8x

12.9x

1.3x

Werner Enterprises (WERN)

H/1

19.10

81.6

1,558.9

20.0

125.8

1,453.1

31.0x

32.3x

25.4x

21.5x

18.2x

2.2x

U.S. Xpress Enterprises (XPRSA)

NR

12.28

14.2

174.0

150.7

6.1

318.6

NM

NM

51.2x

22.7x

15.5x

1.1x

Min

52.3

0.0

0.1

120.3

12.9x

15.7x

13.2x

11.1x

10.8x

0.9x

Mean

752.9

86.3

47.0

791.3

29.0x

32.5x

30.0x

22.3x

17.4x

2.8x

Median

428.2

56.1

23.0

411.8

29.0x

32.3x

28.3x

22.7x

16.9x

2.2x

Max

2,214.5

406.1

186.5

2,313.1

51.0x

56.5x

51.2x

26.8x

22.5x

9.7x

	Enterprise value as a multiple of
	TTM		TTM		TTM		TTM			TTM			TTM			PEG		Div.			FCF
Company name (Ticker)	Revenue		EBITDA		EBIT		ROA			ROE			ROIC			ratio(c)		Yield			Yield
Truckload
Celadon Group (CLDN)		0.5x		6.8x		14.3x		2.3	%		7.6	%		5.0	%		1.27		0.0	%		32.9	%
Covenant Transport (CVTI)		0.6x		4.5x		11.5x		3.4	%		6.5	%		5.4	%		1.33		0.0	%		9.6	%
Forward Air Corp. (FWRD)		2.1x		11.4x		13.7x		15.1	%		18.6	%		18.2	%		1.41		0.0	%		4.6	%
Heartland Express (HTLD)		2.6x		10.5x		14.2x		12.4	%		17.0	%		17.0	%		1.66		0.3	%		2.5	%
J.B. Hunt Transport Svcs. (JBHT)		1.0x		7.5x		14.6x		6.4	%		13.4	%		10.6	%		1.24		0.0	%		7.4	%
Knight Transportation (KNGT)		2.8x		10.6x		15.9x		11.4	%		16.1	%		15.2	%		1.13		0.0	%		0.1	%
Landstar System (LSTR)		0.8x		12.2x		14.0x		13.0	%		38.2	%		23.3	%		1.36		0.0	%		7.6	%
Marten Transport (MRTN)		0.5x		3.4x		9.8x		3.9	%		8.2	%		6.4	%		0.98		0.0	%		1.5	%
P.A.M. Transportation Svcs. (PTSI)		0.9x		4.9x		10.1x		5.7	%		9.4	%		8.6	%		0.91		0.0	%		-1.6	%
Swift Transportation (SWFT)		0.9x		7.6x		16.3x		4.2	%		9.4	%		6.9	%		1.10		0.0	%		5.0	%
Transport Corp. of America (TCAM)		0.5x		4.6x	NM			-1.2	%		-3.8	%		0.3	%	NA			0.0	%		41.8	%
USA Truck (USAK)		0.6x		4.3x		18.5x		1.4	%		3.7	%		2.6	%		0.86		0.0	%		13.9	%
Werner Enterprises (WERN)		1.0x		6.0x		13.1x		6.4	%		10.5	%		10.0	%		1.30		0.6	%		4.7	%
U.S. Xpress Enterprises (XPRSA)		0.3x		5.2x		13.3x		1.5	%		4.1	%		3.7	%		0.71		0.0	%		31.0	%
Min		0.3x		3.4x		9.8x		-1.2	%		-3.8	%		0.3	%		0.71		0.0	%		-1.6	%
Mean		1.1x		7.1x		13.8x		6.1	%		11.4	%		9.5	%		1.17		0.1	%		11.5	%
Median		0.8x		6.4x		14.0x		5.0	%		9.4	%		7.7	%		1.24		0.0	%		6.2	%
Max		2.8x		12.2x		18.5x		15.1	%		38.2	%		23.3	%		1.66		0.6	%		41.8	%

Notes:

Source: Company data , First Call, and Legg Mason Research estimates.

(a) Total Enterprise Value = Market Capitalization of Equity + Total Debt - Cash + Market Value of Minority Interest.

(b) Legg Mason estimates for those rated and First Call mean estimates for unrated securities.

(c) 2004E P/E divided by First Call mean 3-5 year growth rate.

Excludes non-recurring items.

Calculations may vary due to rounding.

Confidential — not for duplication.

ADDENDA D – Legg Mason Transportation Comparable Companies

Legg Mason
Transportation Equity Comps
December 10, 2003

Comparative Valuation Matrix

(figures in $US millions, except per share amounts)

Equity value as a multiple of

CY EPS

Price

Diluted

Market

Total

Cash &

Book

Company name (Ticker)

Rating

12/10/03

S/O

cap.

Debt

equiv.

TEV(a)

2000A

2001A

2002A

2003E(b)

2004E(b)

value

Less-Than-Truckload

Arkansas Best Corp. (ABFS)

H/2

30.73

25.6

786.1

30.5

3.0

813.6

9.7x

20.9x

19.1x

17.5x

15.0x

2.1x

CNF Inc. (CNF)

NR

32.65

50.8

1,657.5

556.5

326.3

1,887.8

12.3x

NM

23.7x

20.5x

15.2x

2.1x

Old Dominion Freight Line (ODFL)

B/2

33.65

16.1

542.6

99.3

8.6

633.3

30.6x

35.3x

23.7x

19.8x

15.7x

2.4x

Roadway Corp. (ROAD)

NR

52.53

19.9

1,045.9

248.9

132.9

1,161.9

17.6x

32.0x

25.6x

20.8x

16.8x

2.4x

SCS Transportation (SCST)

NR

17.04

15.5

264.7

116.5

31.3

349.9

142.0x

43.7x

20.8x

17.8x

13.5x

1.4x

USF Corp. (USFC)

NR

32.80

27.3

897.0

250.2

83.4

1,063.8

9.1x

22.9x

21.0x

22.3x

15.8x

1.4x

Yellow Corp. (YELL)

NR

32.80

30.2

990.0

319.0

226.5

1,082.5

13.6x

52.1x

31.8x

14.7x

11.8x

2.5x

Min

264.7

30.5

3.0

349.9

9.1x

20.9x

19.1x

14.7x

11.8x

1.4x

Mean

883.4

231.6

116.0

999.0

33.6x

34.5x

23.7x

19.1x

14.8x

2.0x

Median

897.0

248.9

83.4

1,063.8

13.6x

33.7x

23.7x

19.8x

15.2x

2.1x

Max

1,657.5

556.5

326.3

1,887.8

142.0x

52.1x

31.8x

22.3x

16.8x

2.5x

	Enterprise value as a multiple of
	TTM		TTM		TTM		TTM			TTM			TTM			PEG		Div.			FCF
Company name (Ticker)	Revenue		EBITDA		EBIT		ROA			ROE			ROIC			ratio(c)		Yield			Yield
Less-Than-Truckload
Arkansas Best Corp. (ABFS)		0.5x		6.3x		10.4x		6.7	%		13.4	%		11.8	%		1.67		1.0	%		2.2	%
CNF Inc. (CNF)		0.4x		7.0x		16.0x		4.1	%		15.8	%		10.2	%		1.27		1.2	%		2.4	%
Old Dominion Freight Line (ODFL)		1.0x		7.5x		13.2x		6.4	%		13.5	%		10.1	%		0.98		0.0	%		-6.6	%
Roadway Corp. (ROAD)		0.3x		5.8x		9.5x		4.5	%		14.3	%		10.5	%		1.68		0.4	%		6.7	%
SCS Transportation (SCST)		0.4x		4.6x		10.9x		2.9	%		7.5	%		6.3	%		0.75		0.0	%		16.7	%
USF Corp. (USFC)		0.5x		5.5x		11.9x		3.3	%		7.1	%		6.5	%		1.75		1.1	%		3.2	%
Yellow Corp. (YELL)		0.4x		5.7x		10.2x		5.0	%		14.3	%		11.4	%		1.07		0.0	%		2.6	%
Min		0.3x		4.6x		9.5x		2.9	%		7.1	%		6.3	%		0.75		0.0	%		-6.6	%
Mean		0.5x		6.1x		11.7x		4.7	%		12.3	%		9.5	%		1.31		0.5	%		3.9	%
Median		0.4x		5.8x		10.9x		4.5	%		13.5	%		10.2	%		1.27		0.4	%		2.6	%
Max		1.0x		7.5x		16.0x		6.7	%		15.8	%		11.8	%		1.75		1.2	%		16.7	%

Notes:

Source: Company data , First Call, and Legg Mason Research estimates.

(a) Total Enterprise Value = Market Capitalization of Equity + Total Debt - Cash + Market Value of Minority Interest.

(b) Legg Mason estimates for those rated and First Call mean estimates for unrated securities.

(c) 2004E P/E divided by First Call mean 3-5 year growth rate.

Excludes non-recurring items.

Calculations may vary due to rounding.

Confidential — not for duplication.

ADDENDA D – Legg Mason Transportation Comparable Companies

Legg Mason
Transportation Equity Comps
December 10, 2003

Comparative Valuation Matrix

(figures in $US millions, except per share amounts)

Equity value as a multiple of

CY EPS

Price

Diluted

Market

Total

Cash &

Book

Company name (Ticker)

Rating

12/10/03

S/O

cap.

Debt

equiv.

TEV(a)

2000A

2001A

2002A

2003E(b)

2004E(b)

value

Asset-Based Logistics

The Brinks Company (BCO)

NR

21.42

54.3

1,162.1

407.5

138.0

1,328.7

428.4x

24.3x

13.7x

34.5x

18.6x

2.8x

CNF Inc. (CNF)

NR

32.65

50.8

1,657.5

556.5

326.3

1,887.8

NM

NM

23.7x

20.5x

15.2x

2.1x

FedEx Corp. (FDX)

H/2

72.04

307.7

22,166.5

2,095.0

706.0

23,555.5

29.0x

32.7x

28.6x

24.6x

20.6x

3.0x

Ryder System (R)

B/2

31.31

64.2

2,011.0

1,776.0

102.8

3,684.2

16.2x

21.2x

17.0x

15.1x

12.9x

1.6x

United Parcel Service (UPS)

H/1

72.83

1,136.9

82,797.5

4,070.0

4,146.0

82,721.5

29.1x

34.7x

34.0x

30.1x

26.2x

6.1x

Min

1,162.1

407.5

102.8

1,328.7

16.2x

21.2x

13.7x

15.1x

12.9x

1.6x

Mean

21,958.9

1,781.0

1,083.8

22,635.5

125.7x

28.2x

23.4x

25.0x

18.7x

3.1x

Median

2,011.0

1,776.0

326.3

3,684.2

29.1x

28.5x

23.7x

24.6x

18.6x

2.8x

Max

82,797.5

4,070.0

4,146.0

82,721.5

428.4x

34.7x

34.0x

34.5x

26.2x

6.1x

Non-Asset-Based Logistics

C.H. Robinson Worldwide (CHRW)

S/1

38.99

86.3

3,364.3

0.0

224.5

3,139.8

47.0x

39.8x

33.9x

29.3x

26.3x

6.9x

EGL, Inc. (EAGL)

NR

18.51

47.1

871.0

118.4

132.6

856.8

16.1x

74.9x

74.0x

36.3x

16.7x

2.2x

Expeditors International (EXPD)

NR

38.00

110.7

4,206.4

0.1

293.1

3,913.4

50.0x

42.9x

36.9x

34.5x

29.0x

6.9x

Forward Air Corp. (FWRD)

H/1

26.83

21.6

578.3

1.0

76.7

502.7

29.0x

30.1x

29.2x

23.7x

21.1x

4.2x

Hub Group (HUBGE)

NR

21.70

7.9

170.9

82.0

0.0

252.9

62.0x

361.7x

114.2x

NM

NM

1.2x

Landstar System (LSTR)

H/2

38.00

31.3

1,189.7

104.6

63.7

1,230.6

29.9x

30.4x

25.9x

23.5x

20.4x

9.7x

Pacer International (PACR)

NR

21.45

38.1

816.7

232.1

4.5

1,044.3

35.8x

79.4x

29.0x

21.0x

17.9x

4.0x

UTI Worldwide (UTIW)

NR

37.62

25.8

969.7

44.3

149.6

818.9

NM

49.4x

34.8x

29.8x

24.9x

2.8x

Min

170.9

0.0

0.0

252.9

16.1x

30.1x

25.9x

21.0x

16.7x

1.2x

Mean

1,520.9

72.8

118.1

1,469.9

38.5x

88.6x

47.2x

28.3x

22.3x

4.7x

Median

920.3

63.2

104.6

950.6

35.8x

46.2x

34.4x

29.3x

21.1x

4.1x

Max

4,206.4

232.1

293.1

3,913.4

62.0x

361.7x

114.2x

36.3x

29.0x

9.7x

	Enterprise value as a multiple of
	TTM		TTM		TTM		TTM			TTM			TTM			PEG		Div.			FCF
Company name (Ticker)	Revenue		EBITDA		EBIT		ROA			ROE			ROIC			ratio(c)		Yield			Yield
Asset-Based Logistics
The Brinks Company (BCO)		0.3x		4.4x		12.5x		2.0	%		10.7	%		7.5	%		0.78		0.5	%		8.9	%
CNF Inc. (CNF)		0.4x		7.0x		16.0x		4.1	%		15.8	%		10.2	%		1.27		1.2	%		2.4	%
FedEx Corp. (FDX)		1.0x		8.6x		17.1x		5.8	%		12.2	%		10.6	%		1.72		0.3	%		3.1	%
Ryder System (R)		1.0x		4.1x		12.7x		2.6	%		10.4	%		6.4	%		1.18		2.0	%		13.5	%
United Parcel Service (UPS)		2.5x		14.3x		19.5x		9.7	%		21.4	%		16.1	%		2.02		1.4	%		3.4	%
Min		0.3x		4.1x		12.5x		2.0	%		10.4	%		6.4	%		0.78		0.3	%		2.4	%
Mean		1.1x		7.7x		15.5x		4.8	%		14.1	%		10.1	%		1.39		1.1	%		6.2	%
Median		1.0x		7.0x		16.0x		4.1	%		12.2	%		10.2	%		1.27		1.2	%		3.4	%
Max		2.5x		14.3x		19.5x		9.7	%		21.4	%		16.1	%		2.02		2.0	%		13.5	%
Non-Asset-Based Logistics
C.H. Robinson Worldwide (CHRW)		5.9x		16.4x		17.4x		13.8	%		24.9	%		24.9	%		1.76		0.8	%		3.3	%
EGL, Inc. (EAGL)		1.2x		12.0x		21.4x		3.0	%		6.8	%		6.6	%		0.98		0.0	%		1.4	%
Expeditors International (EXPD)		5.2x		18.9x		21.4x		13.0	%		22.0	%		21.9	%		1.81		0.3	%		0.3	%
Forward Air Corp. (FWRD)		2.1x		11.4x		13.7x		15.1	%		18.6	%		18.2	%		1.41		0.0	%		4.6	%
Hub Group (HUBGE)		1.5x		7.6x		11.6x		1.8	%		5.3	%		4.9	%	NA			0.0	%		16.2	%
Landstar System (LSTR)		0.8x		12.2x		14.0x		13.0	%		38.2	%		23.3	%		1.36		0.0	%		7.6	%
Pacer International (PACR)		2.8x		11.9x		13.3x		5.7	%		19.1	%		11.3	%		1.19		0.0	%		5.8	%
UTI Worldwide (UTIW)		1.6x		12.3x		15.7x		6.6	%		13.3	%		11.5	%		1.66		1.1	%		3.4	%
Min		0.8x		7.6x		11.6x		1.8	%		5.3	%		4.9	%		0.98		0.0	%		0.3	%
Mean		2.6x		12.9x		16.0x		9.0	%		18.5	%		15.3	%		1.45		0.3	%		5.3	%
Median		1.9x		12.1x		14.8x		9.8	%		18.9	%		14.9	%		1.41		0.0	%		4.0	%
Max		5.9x		18.9x		21.4x		15.1	%		38.2	%		24.9	%		1.81		1.1	%		16.2	%

Notes:

Source: Company data , First Call, and Legg Mason Research estimates.

(a) Total Enterprise Value = Market Capitalization of Equity + Total Debt - Cash + Market Value of Minority Interest.

(b) Legg Mason estimates for those rated and First Call mean estimates for unrated securities.

(c) 2004E P/E divided by First Call mean 3-5 year growth rate.

Excludes non-recurring items.

Calculations may vary due to rounding.

Confidential — not for duplication.

ADDENDA D – Legg Mason Transportation Comparable Companies

Legg Mason
Transportation Equity Comps
December 10, 2003

Financial Statistics Matrix

(figures in $US millions, except per share amounts)

					EBITDA					EBIT					PBT
			TTM																		Effective
Company name (Ticker)	Rating		Revenue		TTM		% margin			TTM		% margin			TTM			% margin			tax rate
Truckload
Celadon Group (CLDN)		NR		369.2		26.8		7.3	%		12.7		3.4	%		7.7			2.1	%		47.7	%
Covenant Transport (CVTI)		NR		577.0		71.2		12.3	%		28.0		4.8	%		25.5			4.4	%		54.2	%
Forward Air Corp. (FWRD)		H/1		235.7		44.1		18.7	%		36.8		15.6	%		37.4			15.9	%		36.6	%
Heartland Express (HTLD)		H/1		394.1		98.4		25.0	%		72.6		18.4	%		74.8			19.0	%		34.0	%
J.B. Hunt Transport Svcs. (JBHT)		H/2		2,390.4		309.2		12.9	%		158.7		6.6	%		137.5			5.8	%		39.1	%
Knight Transportation (KNGT)		H/2		316.2		84.6		26.7	%		56.5		17.9	%		56.6			17.9	%		40.4	%
Landstar System (LSTR)		H/2		1,557.9		100.5		6.5	%		88.0		5.6	%		84.8			5.4	%		37.8	%
Marten Transport (MRTN)		B/2		325.8		45.4		13.9	%		16.0		4.9	%		14.4			4.4	%		38.0	%
P.A.M. Transportation Svcs. (PTSI)		NR		284.1		50.5		17.8	%		24.3		8.5	%		22.9			8.1	%		39.7	%
Swift Transportation (SWFT)		H/2		2,320.2		280.7		12.1	%		131.5		5.7	%		116.5			5.0	%		37.3	%
Transport Corp. of America (TCAM)		NR		266.0		26.3		9.9	%		0.7		0.3	%		(3.7	)		-1.4	%		38.6	%
USA Truck (USAK)		NR		291.2		39.2		13.5	%		9.1		3.1	%		7.1			2.4	%		61.5	%
Werner Enterprises (WERN)		H/1		1,429.9		242.9		17.0	%		111.2		7.8	%		111.8			7.8	%		37.5	%
U.S. Xpress Enterprises (XPRSA)		NR		920.3		61.5		6.7	%		24.0		2.6	%		13.0			1.4	%		49.8	%
Min				235.7		26.3		6.5	%		0.7		0.3	%		(3.7	)		-1.4	%		34.0	%
Mean				834.1		105.8		14.3	%		55.0		7.5	%		50.5			7.0	%		42.3	%
Median				381.6		66.3		13.2	%		32.4		5.7	%		31.5			5.2	%		38.9	%
Max				2,390.4		309.2		26.7	%		158.7		18.4	%		137.5			19.0	%		61.5	%

	CY EPS
															Growth			Total		Tangible		Total		TTM			TTM			Total
Company name (Ticker)	2000A			2001A			2002A			2003E(a)			2004E(a)		Rate(b)			Equity		Equity		Debt		CapEx(c)			FCF(d)			Assets
Truckload
Celadon Group (CLDN)		(0.01	)		(0.05	)		0.37			0.55			0.87		13.0	%		51.6		34.9		67.5		1.7			32.9			168.8
Covenant Transport (CVTI)		0.82			0.21			0.77			0.83			1.18		12.0	%		186.8		175.3		44.7		34.3			26.9			339.6
Forward Air Corp. (FWRD)		0.92			0.89			0.92			1.13			1.27		15.0	%		138.4		122.3		1.0		2.7			26.7			166.6
Heartland Express (HTLD)		0.68			0.75			0.86			1.02			1.13		13.0	%		314.4		314.4		0.0		66.0			30.5			434.4
J.B. Hunt Transport Svcs. (JBHT)		0.51			0.46			0.66			1.17			1.50		14.0	%		675.7		675.7		204.7		146.6			156.3			1,297.3
Knight Transportation (KNGT)		0.53			0.64			0.73			0.93			1.08		20.0	%		228.7		221.2		12.2		71.6			0.9			323.1
Landstar System (LSTR)		1.27			1.25			1.47			1.62			1.86		15.0	%		123.0		91.9		104.6		3.9			80.9			404.8
Marten Transport (MRTN)		1.25			1.03			0.91			1.46			1.50		11.0	%		140.4		140.4		31.4		36.6			3.7			250.3
P.A.M. Transportation Svcs. (PTSI)		1.02			1.18			1.55			1.14			1.32		17.0	%		154.9		138.4		25.0		35.2			(3.4	)		254.1
Swift Transportation (SWFT)		0.82			0.51			0.78			0.93			1.22		15.0	%		808.7		747.8		406.1		180.4			93.2			1,792.1
Transport Corp. of America (TCAM)		0.46			(0.05	)		(0.14	)		(0.06	)		0.40		15.0	%		58.4		58.4		68.1		10.9			21.7			179.9
USA Truck (USAK)		0.01			0.12			0.28			0.39			0.81		15.0	%		76.3		76.3		72.4		16.4			14.3			198.2
Werner Enterprises (WERN)		0.62			0.59			0.75			0.89			1.05		14.0	%		694.3		694.3		20.0		139.9			66.3			1,128.8
U.S. Xpress Enterprises (XPRSA)		0.15			(0.08	)		0.24			0.54			0.79		22.0	%		164.1		92.0		150.7		(3.0	)		56.5			434.9
Min		(0.01	)		(0.08	)		(0.14	)		(0.06	)		0.40		11.0	%		51.6		34.9		0.0		(3.0	)		(3.4	)		166.6
Mean		0.65			0.53			0.73			0.90			1.14		15.1	%		272.6		256.0		86.3		53.1			43.4			526.6
Median		0.65			0.55			0.76			0.93			1.16		15.0	%		159.5		139.4		56.1		34.8			28.7			331.4
Max		1.27			1.25			1.55			1.62			1.86		22.0	%		808.7		747.8		406.1		180.4			156.3			1,792.1

Notes:

Source: Company data , First Call, and Legg Mason Research estimates.

TTM = “Trailing Twelve Months”.

Excludes non-recurring items.

(a) Legg Mason estimates for those rated and First Call mean estimates for unrated securities.

(b) First Call mean 3-5 year growth estimates.

(c) Capital Expenditures, net of sales.

(d) Free Cash Flow = Cash Flow from Operating Activities - Capital Expenditures, net of sales.

Confidential — not for duplication.

ADDENDA D – Legg Mason Transportation Comparable Companies

Legg Mason
Transportation Equity Comps
December 10, 2003

Financial Statistics Matrix

(figures in $US millions, except per share amounts)

					EBITDA					EBIT					PBT
			TTM																	Effective
Company name (Ticker)	Rating		Revenue		TTM		% margin			TTM		% margin			TTM		% margin			tax rate
Less-Than Truckload
Arkansas Best Corp. (ABFS)		H/2		1,521.9		128.2		8.4	%		78.2		5.1	%		76.1		5.0	%		36.1	%
CNF Inc. (CNF)		NR		5,028.1		268.6		5.3	%		117.7		2.3	%		185.4		3.7	%		37.0	%
Old Dominion Freight Line (ODFL)		B/2		643.3		84.3		13.1	%		48.1		7.5	%		41.8		6.5	%		39.4	%
Roadway Corp. (ROAD)		NR		3,321.3		199.2		6.0	%		122.6		3.7	%		94.0		2.8	%		38.7	%
SCS Transportation (SCST)		NR		814.2		76.2		9.4	%		32.1		3.9	%		23.1		2.8	%		42.0	%
USF Corp. (USFC)		NR		2,326.2		194.0		8.3	%		89.3		3.8	%		68.9		3.0	%		34.4	%
Yellow Corp. (YELL)		NR		2,882.1		188.5		6.5	%		105.9		3.7	%		61.0		2.1	%		9.7	%
Min				643.3		76.2		5.3	%		32.1		2.3	%		23.1		2.1	%		9.7	%
Mean				2,362.4		162.7		8.2	%		84.8		4.3	%		78.6		3.7	%		33.9	%
Median				2,326.2		188.5		8.3	%		89.3		3.8	%		68.9		3.0	%		37.0	%
Max				5,028.1		268.6		13.1	%		122.6		7.5	%		185.4		6.5	%		42.0	%

	CY EPS
												Growth			Total		Tangible		Total		TTM		TTM			Total
Company name (Ticker)	2000A		2001A			2002A		2003E(a)		2004E(a)		Rate(b)			Equity		Equity		Debt		CapEx(c)		FCF(d)			Assets
Less-Than Truckload
Arkansas Best Corp. (ABFS)		3.17		1.47			1.61		1.76		2.05		9.0	%		383.4		319.6		30.5		67.7		18.7			720.2
CNF Inc. (CNF)		2.65		(0.56	)		1.38		1.59		2.15		12.0	%		771.5		530.9		556.5		92.1		40.2			2,728.4
Old Dominion Freight Line (ODFL)		1.10		0.95			1.42		1.70		2.15		16.0	%		224.5		213.8		99.3		95.6		(33.2	)		435.8
Roadway Corp. (ROAD)		2.98		1.64			2.05		2.52		3.12		10.0	%		443.6		157.7		248.9		45.8		67.6			1,283.4
SCS Transportation (SCST)		0.12		0.39			0.82		0.96		1.26		18.0	%		184.9		169.2		116.5		32.5		41.7			463.6
USF Corp. (USFC)		3.61		1.43			1.56		1.47		2.08		9.0	%		646.5		545.7		250.2		140.2		29.4			1,355.0
Yellow Corp. (YELL)		2.41		0.63			1.03		2.23		2.78		11.0	%		403.5		375.3		319.0		101.0		23.9			1,275.2
Min		0.12		(0.56	)		0.82		0.96		1.26		9.0	%		184.9		157.7		30.5		32.5		(33.2	)		435.8
Mean		2.29		0.85			1.41		1.75		2.23		12.1	%		436.8		330.3		231.6		82.1		26.9			1,180.2
Median		2.65		0.95			1.42		1.70		2.15		11.0	%		403.5		319.6		248.9		92.1		29.4			1,275.2
Max		3.61		1.64			2.05		2.52		3.12		18.0	%		771.5		545.7		556.5		140.2		67.6			2,728.4

Notes:

Source: Company data , First Call, and Legg Mason Research estimates.

TTM = “Trailing Twelve Months”.

Excludes non-recurring items.

(a) Legg Mason estimates for those rated and First Call mean estimates for unrated securities.

(b) First Call mean 3-5 year growth estimates.

(c) Capital Expenditures, net of sales.

(d) Free Cash Flow = Cash Flow from Operating Activities - Capital Expenditures, net of sales.

Confidential — not for duplication.

ADDENDA D – Legg Mason Transportation Comparable Companies

Legg Mason
Transportation Equity Comps
December 10, 2003

Financial Statistics Matrix

(figures in $US millions, except per share amounts)

					EBITDA					EBIT					PBT
			TTM																	Effective
Company name (Ticker)	Rating		Revenue		TTM		% margin			TTM		% margin			TTM		% margin			tax rate
Asset-Based Logistics
The Brinks Company (BCO)	NR			3,874.6		304.1		7.8	%		106.7		2.8	%		82.1		2.1	%		38.8	%
CNF Inc. (CNF)	NR			5,028.1		268.6		5.3	%		117.7		2.3	%		185.4		3.7	%		37.0	%
FedEx Corp. (FDX)		H/2		22,729.0		2,724.0		12.0	%		1,378.0		6.1	%		1,411.0		6.2	%		39.3	%
Ryder System (R)		B/2		3,596.5		897.2		24.9	%		290.5		8.1	%		203.4		5.7	%		35.5	%
United Parcel Service (UPS)		H/1		32,810.0		5,792.0		17.7	%		4,252.0		13.0	%		4,219.0		12.9	%		37.4	%
Min				3,596.5		268.6		5.3	%		106.7		2.3	%		82.1		2.1	%		35.5	%
Mean				13,607.6		1,997.2		13.6	%		1,229.0		6.4	%		1,220.2		6.1	%		37.6	%
Median				5,028.1		897.2		12.0	%		290.5		6.1	%		203.4		5.7	%		37.4	%
Max				32,810.0		5,792.0		24.9	%		4,252.0		13.0	%		4,219.0		12.9	%		39.3	%
Non-Asset-Based Logistics
C.H. Robinson Worldwide (CHRW)		S/1		530.5		191.6		36.1	%		180.1		33.9	%		182.3		34.4	%		38.8	%
EGL, Inc. (EAGL)	NR			720.4		71.1		9.9	%		40.0		5.6	%		35.0		4.9	%		25.7	%
Expeditors International (EXPD)	NR			746.7		206.6		27.7	%		183.2		24.5	%		190.1		25.5	%		36.0	%
Forward Air Corp. (FWRD)		H/1		235.7		44.1		18.7	%		36.8		15.6	%		37.4		15.9	%		36.6	%
Hub Group (HUBGE)	NR			171.9		33.2		19.3	%		21.8		12.7	%		13.7		8.0	%		47.5	%
Landstar System (LSTR)		H/2		1,557.9		100.5		6.5	%		88.0		5.6	%		84.8		5.4	%		37.8	%
Pacer International (PACR)	NR			369.4		87.4		23.7	%		78.8		21.3	%		56.2		15.2	%		37.4	%
UTI Worldwide (UTIW)	NR			516.6		66.3		12.8	%		52.3		10.1	%		51.6		10.0	%		29.9	%
Min				171.9		33.2		5.3	%		21.8		2.3	%		13.7		2.1	%		25.7	%
Mean				7,963.3		1,229.7		16.6	%		790.7		11.2	%		776.6		10.4	%		37.3	%
Median				3,596.5		268.6		15.6	%		148.9		7.3	%		183.8		6.2	%		37.4	%
Max				32,810.0		5,792.0		36.1	%		4,252.0		33.9	%		4,219.0		34.4	%		47.5	%

	CY EPS
												Growth			Total		Tangible			Total		TTM		TTM		Total
Company name (Ticker)	2000A		2001A			2002A		2003E(a)		2004E(a)		Rate(b)			Equity		Equity			Debt		CapEx(c)		FCF(d)		Assets
Asset-Based Logistics
The Brinks Company (BCO)		0.05		0.88			1.56		0.62		1.15		24.0	%		420.8		185.8			407.5		236.1		100.0		2,556.4
CNF Inc. (CNF)		2.65		(0.56	)		1.38		1.59		2.15		12.0	%		771.5		530.9			556.5		92.1		40.2		2,728.4
FedEx Corp. (FDX)		2.48		2.20			2.52		2.93		3.49		12.0	%		7,327.0		6,264.0			2,095.0		1,249.0		714.0		15,465.0
Ryder System (R)		1.93		1.48			1.84		2.07		2.42		11.0	%		1,232.9		1,045.7			1,776.0		531.9		262.9		5,211.7
United Parcel Service (UPS)		2.50		2.10			2.14		2.42		2.78		13.0	%		13,678.0		12,483.0			4,070.0		1,740.0		2,760.0		28,332.0
Min		0.05		(0.56	)		1.38		0.62		1.15		11.0	%		420.8		185.8			407.5		92.1		40.2		2,556.4
Mean		1.92		1.22			1.89		1.93		2.40		14.4	%		4,686.0		4,101.9			1,781.0		769.8		775.4		10,858.7
Median		2.48		1.48			1.84		2.07		2.42		12.0	%		1,232.9		1,045.7			1,776.0		531.9		262.9		5,211.7
Max		2.65		2.20			2.52		2.93		3.49		24.0	%		13,678.0		12,483.0			4,070.0		1,740.0		2,760.0		28,332.0
Non-Asset-Based Logistics
C.H. Robinson Worldwide (CHRW)		0.83		0.98			1.15		1.33		1.48		15.0	%		488.9		331.6			0.0		5.7		109.9		867.1
EGL, Inc. (EAGL)		1.15		0.25			0.25		0.51		1.11		17.0	%		402.0		307.8			118.4		32.7		11.5		911.9
Expeditors International (EXPD)		0.76		0.89			1.03		1.10		1.31		16.0	%		613.4		607.7			0.1		108.0		14.4		1,040.8
Forward Air Corp. (FWRD)		0.92		0.89			0.92		1.13		1.27		15.0	%		138.4		122.3			1.0		2.7		26.7		166.6
Hub Group (HUBGE)		0.35		0.06			0.19	NA		NA			17.0	%		140.2		(75.0	)		82.0		14.4		17.7		394.3
Landstar System (LSTR)		1.27		1.25			1.47		1.62		1.86		15.0	%		123.0		91.9			104.6		3.9		80.9		404.8
Pacer International (PACR)		0.60		0.27			0.74		1.02		1.20		15.0	%		204.7		(83.6	)		232.1		3.7		43.6		610.7
UTI Worldwide (UTIW)	NA			0.76			1.08		1.26		1.51		15.0	%		346.4		215.1			44.3		17.6		30.6		656.6
Min		0.05		(0.56	)		0.19		0.51		1.11		11.0	%		123.0		(83.6	)		0.0		2.7		11.5		166.6
Mean		1.41		0.94			1.43		1.59		1.98		15.2	%		2,847.4		2,476.8			1,092.4		447.1		501.3		6,603.0
Median		1.21		0.94			1.43		1.59		1.86		15.0	%		551.1		431.2			407.5		100.1		90.4		2,556.4
Max		2.65		2.20			2.52		2.93		3.49		24.0	%		13,678.0		12,483.0			4,070.0		1,740.0		2,760.0		28,332.0

Notes:

Source: Company data , First Call, and Legg Mason Research estimates.

TTM = “Trailing Twelve Months”.

Excludes non-recurring items.

(a) Legg Mason estimates for those rated and First Call mean estimates for unrated securities.

(b) First Call mean 3-5 year growth estimates.

(c) Capital Expenditures, net of sales.

(d) Free Cash Flow=Cash Flow from Operating Activities - Capital Expenditures, net of sales.

Confidential — not for duplication.

ADDENDA D – Legg Mason Transportation Comparable Companies

Legg Mason
Transportation Equity Comps
December 10, 2003

Debt Ratios

Balance sheet debt

Debt Rating

Total debt/

Net debt/

Total debt/

Total debt/

Total debt/

Total debt/

Company name (Ticker)

Rating

S&P

Moody’s

TTM EBITDA

TTM EBITDA

(EBITDA-CapEx)

TTM EBIT

Total book cap.

Total market cap.

Truckload

Celadon Group (CLDN)

NR

NA

NA

2.5x

2.5x

2.7x

5.3x

56.7

%

36.9

%

Covenant Transport (CVTI)

NR

NA

NA

0.6x

0.6x

1.2x

1.6x

19.3

%

13.8

%

Forward Air Corp. (FWRD)

H/1

NA

NA

0.0x

NM

0.0x

0.0x

0.7

%

0.2

%

Heartland Express (HTLD)

H/1

NA

NA

0.0x

NM

0.0x

0.0x

0.0

%

0.0

%

J.B. Hunt Transport Svcs. (JBHT)

H/2

BBB

Baa3

0.7x

0.4x

1.3x

1.3x

23.3

%

8.5

%

Knight Transportation (KNGT)

H/2

NA

NA

0.1x

NM

0.9x

0.2x

5.1

%

1.3

%

Landstar System (LSTR)

H/2

NA

NA

1.0x

0.4x

1.1x

1.2x

46.0

%

8.1

%

Marten Transport (MRTN)

B/2

NA

NA

0.7x

0.0x

3.6x

2.0x

18.3

%

16.8

%

P.A.M. Transportation Svcs. (PTSI)

NR

NA

NA

0.5x

0.3x

1.6x

1.0x

13.9

%

9.7

%

Swift Transportation (SWFT)

H/2

NA

NA

1.4x

1.4x

4.0x

3.1x

33.4

%

18.9

%

Transport Corp. of America (TCAM)

NR

NA

NA

2.6x

2.6x

4.4x

93.7x

53.9

%

56.6

%

USA Truck (USAK)

NR

NA

NA

1.8x

1.8x

3.2x

7.9x

48.7

%

42.5

%

Werner Enterprises (WERN)

H/1

NA

NA

0.1x

NM

0.2x

0.2x

2.8

%

1.3

%

U.S. Xpress Enterprises (XPRSA)

NR

NA

NA

2.4x

2.4x

2.3x

6.3x

47.9

%

46.4

%

Min

0.0x

0.0x

0.0x

0.0x

0.0

%

0.0

%

Mean

1.0x

1.2x

1.9x

8.8x

26.4

%

18.6

%

Median

0.7x

1.0x

1.4x

1.4x

21.3

%

11.8

%

Max

2.6x

2.6x

4.4x

93.7x

56.7

%

56.6

%

Total debt (including leases)

Total debt/

Net debt/

Total debt/

Total debt/

Total debt/

Total debt/

TTM EBITDA/

TTM EBIT/

Company name (Ticker)

TTM EBITDA

TTM EBITDA

(EBITDA-CapEx)

TTM EBIT

Total book cap.

Total market cap.

TTM Interest

TTM Interest

Truckload

Celadon Group (CLDN)

5.9x

5.9x

6.3x

12.5x

75.5

%

58.0

%

5.5x

2.6x

Covenant Transport (CVTI)

1.3x

1.3x

2.5x

3.3x

33.3

%

25.1

%

26.8x

10.5x

Forward Air Corp. (FWRD)

0.6x

NM

0.6x

0.7x

15.8

%

4.3

%

NM

NM

Heartland Express (HTLD)

0.0x

NM

0.0x

0.0x

0.2

%

0.1

%

NM

NM

J.B. Hunt Transport Svcs. (JBHT)

1.4x

1.1x

2.6x

2.7x

38.5

%

16.0

%

15.0x

7.7x

Knight Transportation (KNGT)

0.3x

NM

1.9x

0.4x

9.7

%

2.6

%

NM

NM

Landstar System (LSTR)

1.2x

0.6x

1.2x

1.4x

49.3

%

9.1

%

31.7x

27.7x

Marten Transport (MRTN)

0.7x

0.0x

3.6x

2.0x

18.3

%

16.8

%

29.6x

10.4x

P.A.M. Transportation Svcs. (PTSI)

0.7x

0.5x

2.5x

1.5x

19.5

%

14.0

%

38.1x

18.3x

Swift Transportation (SWFT)

1.8x

1.8x

5.2x

3.9x

39.1

%

22.9

%

19.2x

9.0x

Transport Corp. of America (TCAM)

2.7x

2.7x

4.7x

99.0x

55.2

%

57.9

%

6.0x

0.2x

USA Truck (USAK)

1.9x

1.8x

3.2x

8.0x

49.0

%

42.8

%

14.8x

3.5x

Werner Enterprises (WERN)

0.1x

NM

0.2x

0.2x

2.8

%

1.3

%

NM

NM

U.S. Xpress Enterprises (XPRSA)

4.3x

4.2x

4.1x

11.0x

61.7

%

60.3

%

5.6x

2.2x

Min

0.0x

0.0x

0.0x

0.0x

0.2

%

0.1

%

5.5x

0.2x

Mean

1.6x

2.0x

2.8x

10.5x

33.4

%

23.7

%

19.2x

9.2x

Median

1.3x

1.5x

2.6x

2.3x

35.9

%

16.4

%

17.1x

8.4x

Max

5.9x

5.9x

6.3x

99.0x

75.5

%

60.3

%

38.1x

27.7x

Notes:

Source: Company data , Bloomberg, and Legg Mason Research estimates.

Capitalization of off-balance sheet leases utilizes S&P methodology.

Confidential — not for duplication.

ADDENDA D – Legg Mason Transportation Comparable Companies

Legg Mason
Transportation Equity Comps
December 10, 2003

Debt Ratios

Debt Rating

Balance sheet debt

Total debt/

Net debt/

Total debt/

Total debt/

Total debt/

Total debt/

Company name (Ticker)

Rating

S&P

Moody’s

TTM EBITDA

TTM EBITDA

(EBITDA-CapEx)

TTM EBIT

Total book cap.

Total market cap.

Less-Than-Truckload

Arkansas Best Corp. (ABFS)

H/2

BBB

Baa3

0.2x

0.2x

0.5x

0.4x

7.4

%

3.7

%

CNF Inc. (CNF)

NR

BBB-

Baa3

2.1x

0.9x

3.2x

4.7x

41.9

%

25.1

%

Old Dominion Freight Line (ODFL)

B/2

NA

NA

1.2x

1.1x

-8.8x

2.1x

30.7

%

15.5

%

Roadway Corp. (ROAD)

NR

BBB

Baa3

1.2x

0.6x

1.6x

2.0x

35.9

%

19.2

%

SCS Transportation (SCST)

NR

NA

NA

1.5x

1.1x

2.7x

3.6x

38.7

%

30.6

%

USF Corp. (USFC)

NR

BBB+

Baa1

1.3x

0.9x

4.6x

2.8x

27.9

%

21.8

%

Yellow Corp. [YELL]

NR

BBB

Ba1

1.7x

0.5x

3.6x

3.0x

44.1

%

24.4

%

Min

0.2x

0.2x

-8.8x

0.4x

7.4

%

3.7

%

Mean

1.3x

0.7x

1.1x

2.7x

32.4

%

20.0

%

Median

1.3x

0.9x

2.7x

2.8x

35.9

%

21.8

%

Max

2.1x

1.1x

4.6x

4.7x

44.1

%

30.6

%

Total debt (including leases)

Total debt/

Net debt/

Total debt/

Total debt/

Total debt/

Total debt/

TTM EBITDA/

TTM EBIT/

Company name (Ticker)

TTM EBITDA

TTM EBITDA

(EBITDA-CapEx)

TTM EBIT

Total book cap.

Total market cap.

TTM Interest

TTM Interest

Less-Than-Truckload

Arkansas Best Corp. (ABFS)

0.5x

0.5x

1.0x

0.8x

14.0

%

7.4

%

26.0x

15.9x

CNF Inc. (CNF)

2.9x

1.7x

4.5x

6.7x

50.6

%

32.3

%

10.5x

4.6x

Old Dominion Freight Line (ODFL)

1.4x

1.3x

-10.3x

2.4x

34.1

%

17.6

%

14.1x

8.0x

Roadway Corp. (ROAD)

1.8x

1.1x

2.3x

2.9x

44.5

%

25.4

%

9.0x

5.5x

SCS Transportation (SCST)

1.8x

1.4x

3.1x

4.2x

42.4

%

33.9

%

8.2x

3.4x

USF Corp. (USFC)

1.6x

1.4x

5.6x

3.4x

31.9

%

25.2

%

10.1x

4.6x

Yellow Corp. [YELL]

2.0x

1.6x

4.3x

3.5x

48.2

%

27.5

%

14.4x

8.1x

Min

0.5x

0.5x

-10.3x

0.8x

14.0

%

7.4

%

8.2x

3.4x

Mean

1.7x

1.3x

1.5x

3.4x

37.9

%

24.2

%

13.2x

7.2x

Median

1.8x

1.4x

3.1x

3.4x

42.4

%

25.4

%

10.5x

5.5x

Max

2.9x

1.7x

5.6x

6.7x

50.6

%

33.9

%

26.0x

15.9x

Notes:

Source: Company data , Bloomberg, and Legg Mason Research estimates.

Capitalization of off-balance sheet leases utilizes S&P methodology.

Confidential — not for duplication.

ADDENDA D – Legg Mason Transportation Comparable Companies

Legg Mason
Transportation Equity Comps
December 10, 2003

Debt Ratios

Debt Rating

Balance sheet debt

Total debt/

Net debt/

Total debt/

Total debt/

Total debt/

Total debt/

Company name (Ticker)

Rating

S&P

Moody’s

TTM EBITDA

TTM EBITDA

(EBITDA-CapEx)

TTM EBIT

Total book cap.

Total market cap.

Asset-Based Logistics

The Brinks Company (BCO)

NR

BBB

NA

1.3x

0.9x

6.0x

3.8x

49.2

%

26.0

%

CNF Inc. (CNF)

NR

BBB-

Baa3

2.1x

0.9x

3.2x

4.7x

41.9

%

25.1

%

FedEx Corp. (FDX)

H/2

BBB

Baa2

0.8x

0.5x

1.4x

1.5x

22.2

%

8.6

%

Ryder System (R)

B/2

BBB

Baa1

2.0x

1.9x

4.9x

6.1x

59.0

%

46.9

%

United Parcel Service (UPS)

H/1

AAA

Aaa

0.7x

NM

1.0x

1.0x

22.9

%

4.7

%

Min

0.7x

0.5x

1.0x

1.0x

22.2

%

4.7

%

Mean

1.4x

1.0x

3.3x

3.4x

39.1

%

22.3

%

Median

1.3x

0.9x

3.2x

3.8x

41.9

%

25.1

%

Max

2.1x

1.9x

6.0x

6.1x

59.0

%

46.9

%

Non-Asset-Based Logistics

C.H. Robinson Worldwide (CHRW)

S/1

NA

NA

0.0x

NM

0.0x

0.0x

0.0

%

0.0

%

EGL, Inc. (EAGL)

NR

NA

NA

1.7x

NM

3.1x

3.0x

22.8

%

12.0

%

Expeditors International (EXPD)

NR

NA

NA

0.0x

NM

0.0x

0.0x

0.0

%

0.0

%

Forward Air Corp. (FWRD)

H/1

NA

NA

0.0x

NM

0.0x

0.0x

0.7

%

0.2

%

Hub Group (HUBGE)

NR

NA

NA

2.5x

2.5x

4.4x

3.8x

36.9

%

32.4

%

Landstar System (LSTR)

H/2

NA

NA

1.0x

0.4x

1.1x

1.2x

46.0

%

8.1

%

Pacer International (PACR)

NR

BB-

B2

2.7x

2.6x

2.8x

2.9x

53.1

%

22.1

%

UTI Worldwide (UTIW)

NR

NA

NA

0.7x

NM

0.9x

0.8x

11.3

%

4.4

%

Min

0.0x

0.4x

0.0x

0.0x

0.0

%

0.0

%

Mean

1.1x

1.8x

1.5x

1.5x

21.4

%

9.9

%

Median

0.9x

2.5x

1.0x

1.0x

17.0

%

6.2

%

Max

2.7x

2.6x

4.4x

3.8x

53.1

%

32.4

%

Total debt (including leases)

Total debt/

Net debt/

Total debt/

Total debt/

Total debt/

Total debt/

TTM EBITDA/

TTM EBIT/

Company name (Ticker)

TTM EBITDA

TTM EBITDA

(EBITDA-CapEx)

TTM EBIT

Total book cap.

Total market cap.

TTM Interest

TTM Interest

Asset-Based Logistics

The Brinks Company (BCO)

2.5x

2.1x

11.4x

7.3x

64.8

%

40.0

%

14.4x

5.1x

CNF Inc. (CNF)

2.9x

1.7x

4.5x

6.7x

50.6

%

32.3

%

10.5x

4.6x

FedEx Corp. (FDX)

3.7x

3.5x

6.9x

7.4x

58.2

%

31.5

%

17.7x

8.9x

Ryder System (R)

2.6x

2.5x

6.3x

7.9x

65.1

%

53.4

%

10.3x

3.3x

United Parcel Service (UPS)

0.9x

0.2x

1.2x

1.2x

26.9

%

5.7

%

69.8x

51.2x

Min

0.9x

0.2x

1.2x

1.2x

26.9

%

5.7

%

10.3x

3.3x

Mean

2.5x

2.0x

6.1x

6.1x

53.1

%

32.6

%

24.5x

14.6x

Median

2.6x

2.1x

6.3x

7.3x

58.2

%

32.3

%

14.4x

5.1x

Max

3.7x

3.5x

11.4x

7.9x

65.1

%

53.4

%

69.8x

51.2x

Non-Asset-Based Logistics

C.H. Robinson Worldwide (CHRW)

0.1x

NM

0.1x

0.2x

5.3

%

0.8

%

NM

NM

EGL, Inc. (EAGL)

6.8x

4.9x

12.5x

12.0x

54.5

%

35.6

%

7.9x

4.5x

Expeditors International (EXPD)

0.3x

NM

0.7x

0.4x

9.8

%

1.6

%

NM

NM

Forward Air Corp. (FWRD)

0.6x

NM

0.6x

0.7x

15.8

%

4.3

%

NM

NM

Hub Group (HUBGE)

3.7x

3.7x

6.4x

5.6x

46.4

%

41.5

%

4.2x

2.7x

Landstar System (LSTR)

1.2x

0.6x

1.2x

1.4x

49.3

%

9.1

%

31.7x

27.7x

Pacer International (PACR)

5.3x

5.3x

5.6x

5.9x

69.5

%

36.3

%

3.9x

3.5x

UTI Worldwide (UTIW)

1.2x

NM

1.6x

1.5x

18.5

%

7.5

%

NM

NM

Min

0.1x

0.6x

0.1x

0.2x

5.3

%

0.8

%

3.9x

2.7x

Mean

2.4x

3.6x

3.6x

3.4x

33.6

%

17.1

%

11.9x

9.6x

Median

1.2x

4.3x

1.4x

1.4x

32.4

%

8.3

%

6.0x

4.0x

Max

6.8x

5.3x

12.5x

12.0x

69.5

%

41.5

%

31.7x

27.7x

Notes:

Source: Company data , Bloomberg, and Legg Mason Research estimates.

Capitalization of off-balance sheet leases utilizes S&P methodology.

Confidential — not for duplication.

-DRAFT-

Valuation Findings
as Presented to the

Special Committee of the
Board of Directors
of
Project Tigers

December 15, 2003

Legg Mason Wood Walker
Incorporated

Confidential — not for duplication.

TABLE OF CONTENTS

I. Introduction

A.	Legg Mason’s Engagement
B.	Overview of Project Tigers

II. Valuation Analysis

A.	Summary Analysis
B.	Purchase Price Ratio Matrix
C.	Comparable Public Company Analysis
D.	Comparable M&A Transactions Analysis
E.	Discounted Cash Flow Analysis
F.	Leveraged Buyout Analysis
G.	Comparable Going Private Transaction Analysis

     Addenda

A.	Analysis of Project Tigers’ Relative Stock Performance
B.	Analysis of Risk Free Rate
C.	Analysis of Project Tigers’ Beta and Trading Volume
D.	Legg Mason Transportation Comparable Companies

Confidential — not for duplication.