Covenant Logistics (CVLG) 8-K Regulation FD Disclosure

AG Edwards

Growth Conference

September 2007

Corporate Summary

•Founded in 1985 with 25 tractors and 50 trailers

•Group of transportation providers providing premium
transportation services

•Group operates about 3,675 tractors and 9,000 trailers

•8 full service terminals, 29 drop yards

Investment Summary

•Consumed with providing exceptional service to our
customers

•Constraining size of tractor fleet to maximize profitability

•Plan to resume fleet growth after return to low-90’s
operating ratio

•Significant operating leverage

(1)   Excludes $15.4 million asset impairment charge in 2001, $3.3 million asset impairment charge and a $1.4 million loss on early

        extinguishment of debt in 2002, and a $19.5 million insurance charge and a $.4 million IRS interest charge in 2004.

(1)

(1)

(1)

(e)

$-

$100

$200

$300

$400

$500

$600

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

$(1)

$4

$9

$14

$19

$24

$29

$34

$39

Revenue

Net Income

Inconsistent Profits Continue to Drive Change

Expedited

Regional

Brokerage

2006

2007

34% 36%

9% -%

4% 14%

1% 3%

Dedicated

17% 15%

OTR/Regional

19% 12%

Temperature Control

Temperature Control

16% 20%

79%

63%

Trucks

1,060

675

570

0

2,305

760

610

0

3,675

Covenant Transportation Group

26%

15%

20%

36%

Expedited

Regional

Temperature Control

Dedicated

Brokerage

3%

% of Total Revenue

Covenant Transportation Group
Targeted Premium Markets

• Negatives

● Rate increases are difficult to attain

● Utilization and deadhead improvements are slow

● Fuel surcharge recovery continues to lag versus a year ago

2007 Update

•Positives

●Revenue per truck for the Covenant division continues to improve

●Non driver headcount continues to decline

●Cost reduction initiatives are building momentum

●Solutions subsidiary growing profitably

●Trucks are fully manned for the Covenant and Star subsidiaries

●Assets held for sale continue to decline

●Completed credit facility amendment with minimal annual cost impact

The Future

●Continue to Develop Our Biggest Asset: People

●Training

●Improved Communication

●Find & Develop Next Generation of Leaders

●Restore Consistent Profitability

●Improve Revenue Per Truck

●Selective Rate Increases

●Add Diversity to Present Customer Portfolio

●Fill in Lane Gaps to Improve Density

●Maximize assets that are producing acceptable margins

●Lower Costs!

AG Edwards

Growth Conference

September 2007