Smithway Motor Xpress (SMXC) 8-K Smithway Reports Increase In Second Quarter Earnings

July 20, 2006

FOR IMMEDIATE RELEASE

Press Contact: Douglas C. Sandvig
Senior Vice President,
Treasurer and Chief Financial Officer
Smithway Motor Xpress Corp.
(515) 576-7418

SMITHWAY REPORTS INCREASE IN SECOND QUARTER EARNINGS

FORT DODGE, IOWA (PR Newswire) July 20, 2006—Smithway Motor Xpress Corp. (Nasdaq Capital Market: SMXC) announced today financial and operating results for the second quarter and six months ended June 30, 2006.

For the quarter, net earnings improved 15% to $1.6 million compared to $1.4 million for the same quarter in 2005. For the first six months of 2006, net earnings improved 40% to $2.6 million compared to $1.9 million in the 2005 period.

For the second quarter of 2006, operating revenue increased approximately 10% to $60.9 million from $55.4 million for the corresponding quarter in 2005. Operating revenue, excluding fuel surcharge revenue of $10.2 million, increased approximately 4% to $50.7 million from $48.7 million, excluding fuel surcharge revenue of $6.6 million, for the corresponding quarter in 2005. For the second quarter of 2006, net earnings were $1.6 million, or $0.31 per basic and diluted share, compared with net earnings of $1.4 million, or $0.27 per basic share and diluted share, for the same quarter in 2005.

For the first six months of 2006, operating revenue increased approximately 13% to $118.6 million from $105.1 million for the corresponding period in 2005. Operating revenue, excluding fuel surcharge revenue of $18.4 million, increased approximately 7% to $100.2 million from $93.6 million, excluding fuel surcharge revenue of $11.5 million, for the corresponding period in 2005. For the first six months of 2006, net earnings were $2.6 million, or $0.52 per basic and $0.51 per diluted share, compared with net earnings of $1.9 million, or $0.38 per basic share and $0.37 per diluted share, for the same period in 2005.

G. Larry Owens, President and Chief Executive Officer, commented, “Our performance improved once again during the second quarter of 2006 and our earnings per share for the trailing four quarters improved to $0.99. Our operating ratio, excluding fuel surcharge revenue, for the quarter was 93.5% compared to 94.4% during the second quarter of 2005, a 90 basis point improvement.

“We were able to achieve these improved results despite escalating fuel prices and increased driver pay which negatively impacted our results for the quarter. During the quarter, average fuel prices increased 28% to $2.75 per gallon compared to $2.15 per gallon in the second quarter of 2005. Even though fuel surcharge revenue mitigated 77% of this price increase, fuel prices reduced our second quarter net earnings by approximately $0.07 per share and negatively impacted our operating ratio by approximately 116 basis points. We raised driver wages on April 1, 2006. By doing so, we continue to attract and retain drivers, minimizing the number of unseated tractors.

“We are proud of our second quarter results which were achieved during a time of increasing costs. We continually work to contain costs and improve our operations so that we can positively impact future earnings.”

Smithway is a truckload carrier that hauls diversified freight nationwide, concentrating primarily on the flatbed segment of the truckload market. Its Class A Common Stock is traded on the Nasdaq Capital Market under the symbol “SMXC.”

This press release and statements made by the Company in its stockholder reports and public filings, as well as oral public statements by Company representatives, may contain certain forward-looking information, usually identified by words such as “anticipates,” “believes,” “estimates,” “projects,” “plans,” “expects,” or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in forward-looking statements. The following factors, among others, could cause actual results to differ materially from those in forward-looking statements: failure to sustain quarterly and annual operating profitability, which could result in violation of bank covenants and acceleration of indebtedness at several financial institutions; the ability to obtain financing on acceptable terms, and obtain waivers and amendments to current financing in the event of default; economic recessions or downturns in customers’ business cycles; excessive increases in capacity within truckload markets; surplus inventories; decreased demand for transportation services offered by the Company; increases or rapid fluctuations in inflation, interest rates, fuel prices, and fuel hedging; the availability and costs of attracting and retaining qualified drivers and owner-operators; increases in insurance premiums and deductible amounts, or changes in excess coverage, relating to accident, cargo, workers’ compensation, health, and other claims; the resale value of used equipment and prices of new equipment; seasonal factors such as harsh weather conditions that increase operating costs; regulatory requirements that increase costs and decrease efficiency, including emissions standards and hours-of-service regulations; changes in management; and the ability to negotiate, consummate, and integrate acquisitions. Readers should review and consider the various disclosures made by the Company in this press release, stockholder reports, and in its Forms 10-K, 10-Q, and other public filings. The Company disclaims any obligation to update or alter its forward-looking statements whether as a result of new information, future events, or otherwise.

1

SMITHWAY MOTOR XPRESS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except share and per share data and operating statistics)

	Three months ended						Six months ended
	June 30,						June 30,
	(unaudited)						(unaudited)
		2005			2006			2005			2006
Operating revenue:
Freight	$	54,958		$	60,371		$	104,405		$	117,648
Other		398			510			675			922
Operating revenue		55,356			60,881			105,080			118,570
Operating expenses:
Purchased transportation		19,147			21,681			35,515			42,234
Compensation and employee benefits		14,581			14,683			28,241			29,812
Fuel, supplies, and maintenance		11,937			14,183			23,015			26,941
Insurance and claims		1,658			1,485			3,666			2,918
Taxes and licenses		1,032			1,012			1,905			1,966
General and administrative		1,824			2,026			3,766			3,892
Communications and utilities		265			273			596			617
Gain on disposal of assets		(480	)		(750	)		(1,020	)		(1,312	)
Depreciation and amortization		2,666			3,011			5,344			5,875
Total operating expenses		52,630			57,604			101,028			112,943
Earnings from operations		2,726			3,277			4,052			5,627
Other (expense) income:
Interest expense		(399	)		(539	)		(768	)		(1,040	)
Interest income		18			41			51			59
Earnings before income taxes		2,345			2,779			3,335			4,646
Income tax expense		990			1,220			1,477			2,044
Net earnings	$	1,355		$	1,559		$	1,858		$	2,602
Basic earnings per share	$	0.27		$	0.31		$	0.38		$	0.52
Diluted earnings per share	$	0.27		$	0.31		$	0.37		$	0.51
Basic weighted average common shares outstanding		4,936,624			4,978,575			4,920,325			4,975,118
Diluted weighted average common shares outstanding		5,047,458			5,082,972			5,035,012			5,079,537
OPERATING STATISTICS
Operating ratio (1)		95.1	%		94.6	%		96.1	%		95.3	%
Operating ratio, excluding fuel surcharges (2)		94.4	%		93.5	%		95.7	%		94.4	%
Average operating revenue per tractor per week	$	3,445		$	3,729		$	3,275		$	3,614
Average revenue per tractor per week (3)	$	2,864		$	2,947		$	2,767		$	2,881
Average revenue per seated tractor per week(3)	$	2,967		$	3,021		$	2,856		$	2,949
Average length of haul in miles		625			606			627			614
Average revenue per loaded mile (3)	$	1.56		$	1.63		$	1.54		$	1.62
Ending company tractors		763			773			763			773
Ending owner/operators tractors		471			488			471			488
Ending trailers		2,073			2,139			2,073			2,139
Weighted average tractors		1,236			1,256			1,234			1,262

(1) Operating expenses divided by operating revenue.
(2) Operating expenses minus fuel surcharge revenue, divided by operating revenue excluding fuel surcharge revenue.
(3) Excludes fuel surcharge, brokerage, and other revenue. For the three months ended June 30, 2005 and 2006, brokerage revenue was $2,319 and $2,095. For the six months ended June 30, 2005 and 2006, brokerage revenue was $4,120 and $4,756.

2

SMITHWAY MOTOR XPRESS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)

	December 31,		June 30,
	2005		2006
			(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	168	$	4,470
Receivables, net		19,820		21,176
Inventories		938		1,011
Prepaid expenses and other		5,705		5,158
Total current assets		26,631		31,815
Property and equipment		121,126		122,323
Less accumulated depreciation		59,704		55,969
Net property and equipment		61,422		66,354
Other assets		2,058		2,060
Total assets	$	90,111	$	100,229
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current debt	$	8,363	$	9,041
Accounts payable and accrued expenses		17,351		19,010
Total current liabilities		25,714		28,051
Long-term debt		25,185		29,766
Deferred income taxes		11,734		12,238
Total liabilities		62,633		70,055
Stockholders’ equity		27,478		30,174
Total liabilities and stockholders’ equity	$	90,111	$	100,229

3