EXHIBIT 99


TRANSIT GROUP COMPLETES ACQUISITION OF RAINBOW
TRUCKING, THE COMPANY'S FIFTH TRANSACTION IN A
SIX-MONTH PERIOD

December 30, 1997 4:54 EST

ATLANTA--(BUSINESS  WIRE)--Dec. 30, 1997--Transit Group, Inc. (Nasdaq Small Cap:
TRGP) today announced that it has completed the previously announced acquisition
of Rainbow Trucking,  a privately held full load, long haul trucking company and
two affiliate  companies based in Louisville,  Kentucky.  Under the terms of the
definitive  agreements,  Transit  Group has  issued  679,246  new  shares of the
Company's   common  stock  to  the  sellers,   representing  a  total  value  of
approximately $4.5 million. Transit Group currently has approximately 19 million
common shares outstanding.

Commenting on the announcement,  Philip A. Belyew, President and Chief Executive
Officer of the Company, said "This acquisition  represents an important step for
Transit Group for several  reasons.  As the fifth  acquisition we have completed
this year, it increases our already strong  position in the truckload  industry,
increasing  our annual  revenue base by more than 10% and  enhancing  our future
profitability.  It also is a milestone event for us in that Rainbow is our first
"tuck in"  transaction  - a follow-on  acquisition  in a particular  market that
allows us to consolidate our operations  there to create synergies and operating
efficiencies."   Belyew   noted  that   Transit   Group   acquired   Louisville,
Kentucky-based Capital Warehouse, Inc. in August 1997.

"As we look ahead to the coming year, we believe  market forces will continue to
accelerate  consolidation  in the  truckload  transportation  industry,"  Belyew
added.  "Against this backdrop,  we plan  additional  acquisitions  in the first
quarter of 1998."

Rainbow  Trucking  currently  operates a fleet of 83 power  units,  including 10
owner/operated  tractors,  as  well as 167  trailers,  in the  Southeastern  and
Southwestern  regions  of the  country.  The  company  serves  customers  in the
plastics, textiles, electronics, paper and retail industries.
Its 1997 revenues are expected to approach $12.5 million.

Comments in this new release  regarding  the  Company's  business  which are not
historical  facts  are  forward  looking   statements  that  involve  risks  and
uncertainties. Among these risks are that the Company is in a highly competitive
business,  has history of operating  losses,  and is pursuing a growth  strategy
that  relies in part on the  completion  of  acquisitions  of  companies  in the
trucking  industry.  There can be no  assurance  that in its highly  competitive
business  environment,  the Company  will  successfully  improve  its  operating
profitability or consummate such acquisitions.

Transit Group,  headquartered in Atlanta,  Georgia,  is a holding company in the
business of acquiring and consolidating short- and long-haul trucking companies,
particularly  truckload  carriers  based  in  the  southeastern  United  States.
Trucking  companies  that  operate  as parts of  Transit  Group are  located  in
Alabama,  Florida,  Kentucky and North Carolina,  and comprise a fleet of almost
500 trucks and 1,200 trailers, serving customers nationwide.