Quality Distribution (QLTY) 8-K Quality Distribution, Inc. Announces Second

EXHIBIT 99. 1

QUALITY DISTRIBUTION, INC. ANNOUNCES SECOND

QUARTER RESULTS

FOR IMMEDIATE RELEASE

TAMPA, FL – August 8, 2007 – Quality Distribution, Inc. (Nasdaq: QLTY) (the “Company”) today reported its highest total revenues and highest transportation revenues in its history. The total revenue for the quarter was $194.6 million, a 2.3% increase over second quarter revenues of $190.3 million last year. Transportation revenues increased 1.6% from the prior-year quarter primarily resulting from an increase in prices. Total revenue for the six months ended June 30, 2007, increased to $372.7 million from $369.0 million last year, with transportation revenues increasing by 0.7%.

Operating income for the quarter ended June 30, 2007 was $11.9 million versus $5.5 million for the first quarter of this year an increase of 115% on revenue growth of 9.3%. The improved margins are a result of a decrease in insurance expense in the quarter and a general improvement in operating margins in both our trucking and tank wash businesses as both began to recover from a weak 4^th and 1^st quarter.

Net income for the quarter ended June 30, 2007 was $2.2 million, or $0.12 earnings per fully diluted share (“EPS”), as compared with net income of $5.5 million or $0.28 EPS in the second quarter of last year. Net income for the six months ended June 30, 2007 was $2.1 million, or $0.11 EPS, as compared with net income of $10.0 million, or $0.51 EPS last year.

The company’s reported EPS was adversely impacted by a higher than normal effective tax rate in the 2^nd quarter of 48.8%. The quarterly rate was affected by certain permanent tax items, the impact of which will be mitigated on a full year basis such that the Company expects its annual effective tax rate to be in the range of 36% to 39%. Applying an annual 39% tax rate to pre-tax income for the second quarter 2007 results in an EPS of $0.14 as compared to an EPS of $0.18 for the comparable period last year. Included in the quarter was a pre-tax charge of approximately $300,000 ($0.01 EPS assuming a 39% effective tax rate) related to the Company’s relocation of its corporate headquarters to a new facility in Tampa, FL.

As previously announced, effective May 1, 2007 the Company acquired the assets of Brite Clean, a leading tank wash operation with annual revenues of approximately $12 million, and facilities located in Carteret, NJ, Bensalem, PA, Houston, TX and Chicago, IL.

The Company also announced on August 2, 2007 that it has entered into an agreement to acquire 100% of the outstanding stock of Boasso America Corporation (“Boasso”) for approximately $60 million, subject to purchase price adjustments. Boasso, headquartered in Chalmette, LA, is a leading provider of ISO tank container and depot services. This acquisition will add six additional locations in Chalmette, LA, Houston, TX, Charleston, SC, Chicago, IL, Detroit, MI and Jacksonville, FL to the Company’s network of tank container service centers. For its most recent fiscal year ended March 31, 2007, Boasso had revenues in excess of $70 million. The Company expects the acquisition to be immediately accretive to earnings and to close during the fourth quarter.

Commenting on the results and acquisitions, President and Chief Executive Officer Gary Enzor stated, “Demand began to recover in the 2^nd quarter and based on feedback from our customers, we anticipate that the 2^nd half of this year will show an improvement over the first half of this year. We are also pleased to announce the signing of a purchase agreement to acquire Boasso. This acquisition significantly increases our presence in the chemical import/export market, a market that has historically grown at rates in excess of three times the overall market for bulk tank transportation and is a business that has operating margins that are typically higher than those of our core businesses.”

Timothy Page, Chief Financial Officer added, “The Brite Clean acquisition we concluded on May 1^st of this year has had an immediate positive impact on our earnings as we were able to consolidate several existing facilities with the new Brite Clean locations. Additionally, we have undertaken a number of initiatives to improve margins in both our trucking and tank wash businesses and expect to see improving margins in the 2^nd half of this year and going forward.”

The Company will host a conference call for investors to discuss these results on August 9, 2007 at 11:00 a.m. Eastern Time. The toll free dial-in number is 888-390-0675; the toll number is 210-234-0033; the passcode is 7366. A replay of the call will be available until September 9, 2007, by dialing 800-839-8789; passcode; 7366. Copies of this earnings release and other financial information about the Company may be accessed on the “QDI Main / News and Publications” and “Investors” sections of the Company’s website at www.qualitydistribution.com.

Headquartered in Tampa, Florida, Quality Distribution, Inc. through its subsidiary, Quality Carriers, Inc., and through its affiliates and owner-operators, provides bulk transportation and related services. The Company also provides tank cleaning services to the bulk transportation industry through its QualaWash^® facilities. Quality Distribution, Inc. is an American Chemistry Council Responsible Care^® Partner and is a core carrier for many of the Fortune 500 companies that are engaged in chemical production and processing.

This release contains certain forward-looking information that is subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995 and is subject to certain risks and uncertainties that could cause actual results to differ materially from those expected or projected in the forward-looking statements. Without limitation, these risks and uncertainties include the Company’s substantial leverage; economic factors; downturns in customers’ business cycles or in the national economy; the cyclical nature of the transportation industry; claims exposure and insurance costs; adverse weather conditions; dependence on affiliates and owner-operators; changes in government regulation including transportation, environmental and anti-terrorism laws; the Company’s environmental remediation costs; fluctuations in fuel pricing or availability; increases in interest rates; changes in senior management; its ability to achieve projected operating objectives and debt reduction in 2007; its ability to successfully integrate acquired businesses or integrate affiliate businesses converted to Company-controlled operations; and the Company’s ability to attract and retain qualified

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drivers. Readers are urged to carefully review and consider the various disclosures, including but not limited to risk factors, contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2006 and its quarterly reports on Form 10-Q, as well as other periodic reports filed with the Securities and Exchange Commission. The Company disclaims any obligations to update any forward-looking statement as a result of developments occurring after the date of this release.

Contact: Timothy B. Page Senior Vice President and Chief Financial Officer 800-282-2031 ext. 7376

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QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In 000’s) Except Per Share Data

Unaudited

	Three months ended June 30,						Six months ended June 30,
	2007			2006			2007			2006
OPERATING REVENUES:
Transportation	$	151,683		$	149,317		$	293,756		$	291,626
Other service revenues		19,065			17,237			36,033			35,207
Fuel surcharge		23,884			23,724			42,938			42,195
Total operating revenues		194,632			190,278			372,727			369,028
OPERATING EXPENSES:
Purchased transportation		123,427			129,809			239,374			251,390
Compensation		20,587			18,393			40,256			36,274
Fuel, supplies and maintenance		19,375			12,796			35,549			23,739
Depreciation and amortization		4,183			3,851			8,230			7,788
Selling and administrative		7,406			5,486			13,872			10,751
Insurance claims		4,444			4,044			11,082			7,928
Taxes and licenses		843			855			1,624			1,645
Communications and utilities		2,497			2,307			5,129			4,855
Loss (gain) on disposal of property and equipment		(10	)		(66	)		199			(223	)
Total operating expenses		182,752			177,475			355,315			344,147
Operating income		11,880			12,803			17,412			24,881
Interest expense		8,075			7,913			15,752			15,265
Interest income		(176	)		(892	)		(375	)		(1,110	)
Other income		(396	)		(219	)		(359	)		(357	)
Income before taxes		4,377			6,001			2,394			11,083
Provision for income taxes		2,135			467			247			1,069
Net income	$	2,242		$	5,534		$	2,147		$	10,014
PER SHARE DATA:
Net income per common share
Basic	$	0.12		$	0.29		$	0.11		$	0.53
Diluted	$	0.12		$	0.28		$	0.11		$	0.51
Weighted average number of shares
Basic		19,354			18,895			19,351			18,929
Diluted		19,480			19,734			19,478			19,616

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QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In 000’s)

Unaudited

	June 30, 2007			December 31, 2006
ASSETS
Current assets:
Cash and cash equivalents	$	2,878		$	6,841
Accounts receivable, net		95,356			85,482
Prepaid expenses		7,881			6,101
Prepaid tires		7,488			7,517
Deferred tax asset, net		18,320			18,320
Other		5,922			9,214
Total current assets		137,845			133,475
Property and equipment, net		115,754			116,964
Assets held-for-sale		367			381
Goodwill		140,404			138,980
Intangibles, net		1,370			635
Non-current deferred tax asset, net		20,740			19,578
Other assets		8,925			11,249
Total assets	$	425,405		$	421,262
LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current maturities of indebtedness	$	2,664		$	2,578
Accounts payable		13,382			13,957
Affiliates and independent owner-operators payable		14,927			11,025
Accrued expenses		21,585			21,197
Environmental liabilities		7,021			5,995
Accrued loss and damage claims		9,468			11,533
Total current liabilities		69,047			66,285
Long-term indebtedness, less current maturities		276,791			276,544
Environmental liabilities		4,337			5,831
Accrued loss and damage claims		18,232			20,633
Other non-current liabilities		16,685			14,249
Deferred tax liability		787			724
Total liabilities		385,879			384,266
Minority interest in subsidiary		1,833			1,833
SHAREHOLDERS’ EQUITY
Common stock, no par value; 29,000 authorized, 19,337 issued at June 30, 2007 and 19,210 issued at December 31, 2006		360,862			359,995
Treasury stock, 155 and 172 shares at June 30, 2007 and December 31, 2006, respectively		(1,494	)		(1,527	)
Accumulated deficit		(113,047	)		(114,866	)
Stock recapitalization		(189,589	)		(189,589	)
Accumulated other comprehensive loss		(18,699	)		(18,531	)
Stock purchase warrants		—			21
Stock subscriptions receivable		(340	)		(340	)
Total shareholders’ equity		37,693			35,163
Total liabilities, minority interest and shareholders’ equity	$	425,405		$	421,262

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QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In 000’s)

Unaudited

	Six Months Ended June 30,
	2007			2006
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	2,147		$	10,014
Adjustments to reconcile to net cash and cash equivalents used in operating activities:
Depreciation and amortization		8,230			7,788
Bad debt expense		441			(236	)
Foreign currency transaction gain		(247	)		(178	)
Loss (gain) on disposal of property and equipment		199			(223	)
Interest income on repayment of stock subscription		—			(690	)
Stock based compensation		807			1,473
Amortization of deferred financing costs		899			901
Amortization of bond discount		121			122
Minority dividends		72			72
Deferred taxes		(193	)		—
Changes in assets and liabilities:
Accounts and other receivables		(10,315	)		1,355
Prepaid expenses		(1,650	)		(159	)
Prepaid tires		(106	)		(465	)
Other assets		51			(4,921	)
Accounts payable and accrued expenses		1,098			(12,107	)
Environmental liabilities		(468	)		(3,616	)
Accrued loss and damage claims		(4,466	)		150
Affiliates and independent owner-operators payable		3,902			2,751
Other liabilities		753			180
Net cash provided by operating activities		1,275			2,211
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(4,415	)		(8,095	)
Acquisition of business and assets		(3,032	)		(4,630	)
Proceeds from sales of property and equipment		4,243			3,330
Net cash used in investing activities		(3,204	)		(9,395	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on long-term debt and capital lease obligations		(1,303	)		(757	)
Proceeds from revolver		26,800			113,900
Payments on revolver		(26,300	)		(115,100	)
Change in book overdraft		(1,284	)		9,402
Minority dividends		(72	)		(72	)
Proceeds from purchase of stock options		72			101
Net cash (used in) provided by financing activities		(2,087	)		7,474
Effect of exchange rate changes on cash		53			70
Net (decrease) increase in cash and cash equivalents		(3,963	)		360
Cash and cash equivalents, beginning of period		6,841			1,636
Cash and cash equivalents, end of period	$	2,878		$	1,996

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