Exhibit 99.1




                      Stephen Russell, Chairman & CEO
                      Celadon Group, Inc.
                      One Celadon Drive
                      Indianapolis, IN 46235
                      317-972-7000



In Chicago
Woody Wallace
847-564-5610

FOR IMMEDIATE RELEASE
August 11, 1999

          CELADON ANNOUNCES COMPLETION OF $26 MILLION ZIPP ACQUISITION
                        PLANS EXCESS EQUIPMENT WRITE OFF
                    COMPLETES NEW $60 MILLION BANK AGREEMENT

Indianapolis,  IN - Celadon Group,  Inc.  (Nasdaq:  CLDN) today announced it has
completed the previously  announced  asset purchase of  Indianapolis-based  Zipp
Express,  Inc. "Zipp is a major carrier to and from Mexico as well as its having
a strong base of business in the Midwest.  Zipp operates a relatively  new fleet
of about 270 tractors and 800 trailers,"  Stephen  Russell,  Chairman and CEO of
Celadon reported.

In calendar year 1998, Zipp had $38 million in revenue and an operating ratio of
89.8% Russell noted. Celadon paid $26 million cash which included  approximately
$10 million to pay off equipment debt of Zipp, he explained.

Robert  Goldberg,  chief  operating  officer of Celadon,  stated that Zipp's key
management  have  signed  employment  contracts.  Major Zipp  customers  include
Cummins Engine, Ford, General Electric,  General Motors,  Navistar and Xerox, he
said. "We believe this acquisition of Zipp will further  strengthen our position
in the market between the U.S. and Mexico as well as within the Midwest  region.
Zipp is an excellent company with strong  management,  top drivers and excellent
customers," he added.

Mr. Goldberg  further stated that,  "Celadon  anticipates  the acquisition  will
provide enhancements in equipment utilization similar to what occurred after its
acquisition of Gerth. Therefore,  Celadon plans to dispose of a group of its own
older  equipment and related items that will no longer be needed.  The effect of
upgrading its fleet through this  disposition  will result in  a non-cash charge
of  approximately  $3.0 million in the  company's  first  fiscal  quarter to end
September 30, 1999," he related.

In addition,  Celadon also announced it has completed a new $60 million  banking
facility  with ING Barings at a very  competitive  rate relative to its previous
$30 million facility at another institution.  The new arrangement includes a $30
million revolving loan and a $30 million term loan.




Celadon is a truckload  company  specializing in the transport of goods from the
United States and Canada to and from Mexico. The company has approximately 2,300
line  haul  tractors  and  6,800  trailers,   after   accounting  for  the  Zipp
acquisition.