AMERICAN FREIGHTWAYS CORPORATION
               ADOPTS NEW SHAREHOLDERS - RIGHTS PLAN

                                 
                                 
FOR IMMEDIATE RELEASE:

     Harrison, Arkansas.  August 26, 1998.  American Freightways
Corporation (NASDAQ:  AFWY) announced today that its Board of
Directors has voted to adopt a Shareholders' Rights Plan in which
Rights to purchase shares of American Freightways Common Stock will
be distributed as a dividend, one Right per share, to record owners
of American Freightways Common Stock as of the close of business on
August 31, 1998.

     American Freightways Corporation's Board of Directors noted
that the Plan is designed to require that any potential acquiror
seeking to obtain control of American Freightways treats all
American Freightways shareholders fairly and equally and to deter
the use of coercive takeover tactics.
     
     The Board has been considering adopting a plan for several
weeks.  F.S. (Sheridan) Garrison, Chairman of the Board and CEO,
stated, "We believe that American Freightways' Common Stock is
undervalued and the prospects for the Company make the adoption of
the Plan in the best interest of AF shareholders."

     Each Right entitles holders to purchase one share of Common
Stock for $25.00.  Initially, the Rights are not exercisable and
will automatically trade with the Common Stock.  However, if a
person or group acquires more than 15% of American Freightways
Common Stock or announces a tender or exchange offer for more that
15% of the stock, the Rights will become exercisable and each right
holder (other than the prospective acquiror) may use the Right to
purchase $25.00 worth of American Freightways Common Stock at one
half of the then market price.  Details of the Plan and the Rights
are outlined in a letter that will be mailed to all American
Freightways shareholders.

     American Freightways is a scheduled, for-hire carrier of less-
than-truckload shipments of general commodities, presently serving
all points in 28 mid-Atlantic, midwestern, southeastern, and
southwestern states.  Through partnerships AF also serves Alaska,
Canada, Guam, Hawaii, Mexico, and Puerto Rico.  It employs 13,000
people operating over 23,400 pieces of revenue equipment from a
network of 224 Customer Centers.

          Contact:  Frank Conner, Chief Financial Officer
                          (870) 741-9000
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