EXHIBIT 99.1




Transit Group, Inc. Acquires
Rochester, New York-based
Truckload Carrier - K.J. Transportation

June 17,1998 8:23 AM EDT

     ATLANTA--(BUSINESS  WIRE)--June 17,1998--Transit Group, Inc. (Nasdaq Small
Cap: TRGP) today announced that it has acquired K.J.  Transportation,  Inc. and
an  affiliate.  K.J.  Transportation  is a  privately  held  carrier  based  in
Farmington,   New  York,   near   Rochester.   The  transaction  is  valued  at
approximately  $10.2 million.  The purchase price includes $3.5 million in cash
and 878,688 newly issued  Transit Group common  shares.  Transit Group also has
agreed to issue additional shares if K.J.  Transportation's earnings during the
next year exceed specified performance levels.

Currently, Transit Group has about 21 million common shares outstanding.

"We are pleased to announce this important step in the continued  growth of our
Company,"  commented  Transit  Group's  President and Chief  Executive  Officer
Philip A. Belyew.  "K.J.  Transportation  represents the eighth  acquisition we
have  completed  in less than a year and our third  transaction  in 1998.  More
importantly,  K.J.'s $69  million  revenue  base,  generated  primarily  in the
eastern  United  States,  will  boost  our  annualized  revenues  by more  than
one-third  to  over  $200  million."  Belyew  noted  that  K.J.  Transportation
maintains a diverse client base in large,  stable  markets  related to the food
and beverage industry and other consumer products.

"Just as we are excited about the strong individual merits of this company,  we
also are  enthusiastic  about its role in creating  increased  synergies in our
family of  transportation  companies," he continued.  "Its traffic lanes in the
South and East  attractively  complement  the existing  operations of our other
companies,  its significant brokerage operations strengthen our capabilities in
this area and  diversify  our freight  revenues,  and its base in the Northeast
provides an excellent platform for expansion in that region."

Primarily a truckload carrier providing dry van and refrigerated  service along
the   eastern   seaboard   and  to   markets  in  Texas  and   Colorado,   K.J.
Transportation's   fleet  consists  of  300  power  units,  an  additional  160
owner/operators, and 900 trailers. In addition to the significant truckload and
freight brokerage  services,  the company also provides logistics and dedicated
transportation services. Together, these operations generated approximately $69
million in revenue in 1997.

     K.J.   transportation   maintains  terminals  in  Farmington,   New  York;
Harrisburg,  Pennsylvania;  and  Winter  Haven,  Florida.  In  addition  to its
headquarters in Farmington,  the company has sales offices in Denver, Colorado;
Atlanta, Georgia; and in the greater New York metropolitan area.

Comments in this news 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-,  medium- and long-haul trucking
companies,  particularly truckload carriers. Trucking companies that operate as
parts of Transit Group are located in Alabama, Florida, Indiana,  Kentucky, New
York and North  Carolina,  and  comprise a fleet of more than 1,100  trucks and
almost 2,500 trailers, serving customers throughout the country and in Canada.


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