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CONSOLIDATED FREIGHTWAYS FORMS JOINT VENTURE WITH MEXICO'S ALFRI-LODER GROUP

Alliance Expands CF's Service in Mexico

SAN ANTONIO – (May 11, 1998) – As part of a plan to deliver total transportation and logistics solutions for companies doing business in Mexico, Consolidated Freightways (CF) has formed a joint venture with the Alfri-Loder Group. Headquartered in Monterrey, Mexico, CF Alfri-Loder is scheduled to begin operations July 1998.

Consolidated Freightways provides LTL transportation, expedited freight handling and logistics management services for companies shipping freight within North America and around the globe. The joint venture with Alfri-Loder strengthens CF’s position in Mexico, allowing the transportation company to expand services in the burgeoning Mexican market.

The Alfri-Loder Group has more than 65 years of successful experience in Mexico. The Group, owned by A. Federico and Ricardo E. Longoria Derby, has 1,500 employees and is comprised of numerous business interests, including automotive, food, butane gas, transportation and real estate divisions. Last year, Alfri-Loder posted more than $115 million in sales.

"Consolidated Freightways sees tremendous opportunity in Mexico," says W. Roger Curry, CF president and CEO. "The potential for growth in the Mexican market has exploded since the passage of NAFTA. CF’s infrastructure in Mexico is stronger through Alfri-Loder, and the joint venture allows us to better support rapid expansion of our services in this important trade region."

According to independent research, 4 billion pounds of LTL freight moved across the U.S.-Mexico border in 1996 – representing some 2 million shipments.

"CF’s alliance with the Alfri-Loder Group helps us build a leadership position in the Mexican LTL market," says Brian Hickert, manager of CF’s Mexico/Border division. "Alfri-Loder’s knowledge and history of success in the Mexican market -- combined with CF’s LTL expertise -- enables us to lay a foundation for the most reliable, flexible and competitive service across the border and within Mexico."

"Although we have been in trucking for more than 40 years, we have never pursued the LTL business," say A. Federico and Ricardo E. Longoria Derby. "We feel very confident that this new business will achieve great success based on CF’s experience, technology and position as one of the largest and most successful LTL carriers in the U.S. and Canada."

Consolidated Freightways spent months evaluating possible joint venture partners in Mexico. "CF is interested in the long-term value of a relationship," says Curry. "A company like the Alfri-Loder Group offers an ideal combination of experience, knowledge and financial stability."

Recognizing the increased demand for flexible transportation services across the border, Consolidated Freightways in March announced the formation of a new Mexico/Border division. With seven terminals in operation and four additional terminals opening in the coming months, the division places heavy emphasis on multiple border gateways, state-of-the-art equipment, technology and support systems.

"Doing business in Mexico requires an understanding of the nuances of the market," says Hickert. "Familiarity with Mexico’s economic cycles, communications infrastructure, and fiscal and legal environments can directly impact a company’s success."

Consolidated Freightways is a transportation company primarily providing less-than-truckload (LTL) and logistics services throughout the United States, Canada and Mexico using its system of 350 terminals and 22,000 employees. The company also provides international freight services between the U.S. and more than 70 countries.