Knight Transportation 8-K Knight Transportation Posts Record Revenue and Net Income for the Fourth Quarter of 2005

Exhibit 99.1

For Immediate Release

Phoenix, Arizona - January 18, 2006

Contacts:           Dave Jackson, CFO

(602) 269-2000

Knight Transportation Posts Record Revenue and Net Income for the Fourth Quarter of 2005

Knight Transportation Inc. (NYSE: KNX) announced today its financial results for the quarter and year ended December 31, 2005. All earnings per share amounts reflect the company's 3-for-2 stock split effective December 23, 2005.

For the quarter, total revenue increased 29.8%, to $164.6 million from $126.8 for the same quarter of 2004. Revenue, before fuel surcharge, increased 22.2%, to $140.8 million from $115.2 million for the same quarter of 2004. Net income increased 27.3%, to $18.5 million from $14.6 million for the same period of 2004. Net income per diluted share increased to $0.21 from $0.17 for same quarter 2004.

For the twelve months ended December 31, 2005, total revenue increased 28.2%, to $566.8 million from $442.3 million for the same period of 2004. Revenue, before fuel surcharge, increased 21.2%, to $499.0 million from $411.7 million for the same period of 2004. Net income increased 28.9%, to $61.7 million from $47.9 million for the same period of 2004. Net income per diluted share increased to $0.71 from $0.55 for the same period of 2004.

During the quarter, the company completed a 3-for-2 stock split effected in the form of a 50% stock dividend paid on December 23, 2005. This was the company's fifth 3-for-2 stock split since May of 1998, and raised outstanding shares to approximately 85.6 million. The company had previously announced a cash dividend of $.02 per share to shareholders of record on January 31, 2006, and payable on Febuary 14, 2006. The aggregate cash payable in the dividend will be increased by approximately 50% compared with the cash dividends paid prior to the recent stock split.

Chairman and Chief Executive Officer Kevin P. Knight, offered the following comments: "During the fourth quarter our revenue growth was driven by a combination of fleet expansion and improved revenue per mile. We benefited from opening new service centers, increasing service in existing centers, and a full quarter of revenue from Edwards Bros., which we acquired in August 2005.

"A solid U.S. economy and a favorable relationship between shipping demand and truckload capacity contributed to a 5.9% increase in average revenue per loaded mile, before fuel surcharge, and an improvement in our percentage of non-revenue miles compared with the also strong fourth quarter of 2004.

"In addition to growth, for the 44th consecutive quarter since going public, we generated higher year-over-year operating income. In addition, our operating ratio of 78.2% represented a 70 basis point improvement over the 2004 quarter and the best quarterly operating ratio in our history as a public company. Solid productivity, improved fuel surcharge collection, and constant focus on expense control more than overcame cost increases relating to higher prices of revenue equipment, higher diesel fuel prices, declining fuel efficiency due to emissions control regulations, and increases in driver compensation.

"During the quarter, average tractors operated increased 15.4% over the fourth quarter of 2004. We purchased 349 new tractors during the quarter, 241 of which replaced existing units and 108 were for expansion. We also purchased 406 new trailers, 270 of which replaced existing units. For the quarter we invested $37.5 in net capital expenditures. At December 31, 2005, our balance sheet reflected $18.8 million in cash, $2.3 million in short-term investments, zero debt, and $352.9 million in shareholders' equity.

"In looking at 2005 as a whole, we continued to demonstrate the strength and flexibility of our growth model. We expanded organically by opening new dry van service centers in Chicago, El Paso and Reno, as well as increasing business at existing service centers. We also added our first brokerage service center in Phoenix as well as our second refrigerated service center in Idaho Falls through the acquisition of Edwards Bros. We now have 23 service centers strategically located throughout the U.S.

"Looking forward to 2006, we plan to continue to grow our fleet by approximately 15% and, assuming GDP growth remains favorable, we believe that our markets will continue to offer an environment for rate increases to offset the additional costs associated with driver pay, fuel and the introduction of the federally mandated 2007 engines."

The company will hold a conference call on January 19, 4:00 ET, to further discuss its results of operations for the quarter ended December 31, 2005. The dial-in number for this conference call is (800) 350-3624.

Knight Transportation Inc., headquartered in Phoenix, Arizona, is a truckload carrier offering dry van, refrigerated and brokerage services to its customers through a network of service centers located throughout the United States. Refrigerated and brokerage services are provided through the wholly owned subsidiaries of Knight Refrigerated, LLC, and Knight Brokerage, LLC, respectively. The principal types of freight transported includes consumer staples, retail, paper products, packaging/plastics, manufacturing and import/export commodities.

INCOME STATEMENT DATA:	Three Months Ended Dec. 31,					Twelve Months Ended Dec. 31,
	(Unaudited, in thousands, except per share amounts)
	2005			2004		2005			2004
REVENUE:
Revenue, before fuel Surcharge	$	140,755		$	115,196	$	498,996		$	411,717
Fuel surcharge		23,821			11,573		67,817			30,571
TOTAL REVENUE		164,576			126,769		566,813			442,288
OPERATING EXPENSES:
Salaries, wages and benefits		44,731			36,918		162,778			133,822
Fuel expense - gross		40,385			26,058		133,469			85,071
Operations and maintenance		9,580			7,346		34,449			26,369
Insurance and claims		7,939			6,341		25,159			22,319
Operating taxes and licenses		3,406			2,732		12,412			9,798
Communications		1,330			948		4,267			3,602
Depreciation and amortization		14,180			11,820		52,603			40,755
Lease expense - revenue equipment		115			145		183			3,047
Purchased transportation		9,591			7,645		31,787			29,342
Gain on sales of equipment		(1,019	)		-		(2,803	)		-
Miscellaneous operating expenses		3,616			2,549		10,814			8,801
		133,854			102,502		465,118			362,926
Income From Operations		30,722			24,267		101,695			79,362
Other income/(expense)		(189	)		-		361			-
Interest income		216			59		658			398
		27			59		1,019			398
Income Before Income Taxes		30,749			24,326		102,714			79,760
INCOME TAXES		12,200			9,750		41,000			31,900
NET INCOME	$	18,549		$	14,576	$	61,714		$	47,860
Net Income Per Share
- Basic	$	0.22		$	0.17	$	0.72		$	0.57
- Diluted	$	0.21		$	0.17	$	0.71		$	0.55
Weighted Average Shares
Outstanding
- Basic		85,567			84,897		85,302			84,599
- Diluted		87,110			86,937		86,647			86,459

BALANCE SHEET DATA:
	12/31/2005		12/31/2004
ASSETS	(Unaudited, in thousands)
Cash and cash equivalents	$	18,809	$	23,155
Short term investments		2,278		2,202
Accounts receivable, net		79,848		58,733
Notes receivable, net		241		171
Inventories and supplies		3,355		2,332
Prepaid expenses		7,156		5,215
Income tax receivable		-		3,216
Restricted cash		211		-
Deferred tax asset		8,533		7,493
Total Current Assets		120,431		102,517
Property and equipment, net		352,339		287,930
Notes receivable, long-term		344		77
Goodwill		8,119		7,504
Other Assets		2,594		4,839
Total Assets	$	483,827	$	402,867
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable	$	7,464	$	5,044
Accrued payroll		5,452		4,558
Accrued liabilities		13,307		5,684
Dividends payable		1,713		-
Claims accrual		26,155		23,904
Other current liabilities		211		-
Total Current Liabilities		54,302		39,190
Deferred Income Taxes		76,597		72,660
Total Liabilities		130,899		111,850
Common stock		857		850
Additional paid-in capital		87,148		81,834
Retained earnings		264,923		208,333
Total Shareholders' Equity		352,928		291,017
Total Liabilities and Shareholders' Equity	$	483,827	$	402,867

	Three Months Ended Dec. 31,									Twelve Months Ended Dec. 31,
	2005			2004						2005			2004
	(Unaudited)			(Unaudited)						(Unaudited)			(Unaudited)
OPERATING STATISTICS							%									%
							Change									Change
Average Revenue Per Loaded Mile(a)	$	1.709		$	1.614			5.9	%	$	1.654		$	1.546			7.0	%
Average Revenue Per Total Mile(a)	$	1.518		$	1.424			6.6	%	$	1.461		$	1.369			6.7	%
Empty Mile Factor		11.2	%		11.8	%		-5.1	%		11.7	%		11.5	%		1.7	%
Average Miles Per Tractor		28,421			28,692			-0.9	%		112,382			114,793			-2.1	%
Average Length of Haul		609			577			5.5	%		580			556			4.3	%
Operating Ratio(b)		78.2	%		78.9	%					79.6	%		80.7	%
Average Tractors - Total		3,227			2,797			15.4	%		3,016			2,600			16.0	%
Tractors - End of Quarter:
Company		3,034			2,574						3,034			2,574
Owner - Operator		237			244						237			244
		3,271			2,818						3,271			2,818
Trailers - End of Quarter		7,885			7,126						7,885			7,126
Net Capital Expenditures
(in thousands)	$	37,535		$	23,023					$	103,583		$	115,672
Cash Flow From Operations
(in thousands)	$	45,447		$	22,809					$	107,764		$	97,195

(a)Excludes fuel surcharge.

(b)Operating ratio as reported in this press release is based upon total operating expenses, net of fuel surcharge, as a percentage of revenue, before fuel surcharge. Revenue from fuel surcharge is available on the accompanying statements of income. We measure our revenue, before fuel surcharge, and our operating expenses, net of fuel surcharge, because we believe that eliminating this sometimes volatile source of revenue affords a more consistent basis for comparing our results of operations from period to period.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These statements generally may be identified by their use of terms or phrases such as "expects," "estimates," "anticipates," "projects," "believes," "plans," "intends," "may," "will," "should," "could," "potential," "continue," "future," and terms or phrases of similar substance. Forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. Accordingly, actual results may differ from those set forth in the forward-looking statements. Readers should review and consider the factors that may affect future results and other disclosures by the Company in its press release, stockholder reports,  Annual Report on Form 10-K, and other filings with the Securities Exchange Commission. We disclaim any obligation to update or revise any forward-looking statements to reflect actual results or changes in the factors affecting the forward-looking information.

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