Yellow Roadway on Monday announced the first major operational changes since its purchase of USF, including the shutdown of one operating company, USF Dugan.

The announcement came from YRC Regional Transportation, a Yellow Roadway subsidiary established to manage the company's regional, overnight and second-day LTL carriers. The unit includes the former USF regional carriers plus New Penn Motor Express of Lebanon, Pa. YRC is headed by former Roadway president Jim Staley.
The YRC announcement read:
* At the close of business on July 8, 2005, USF Dugan will cease pickup operations. To ensure an orderly transition, USF Dugan will deliver all shipments in its system and all service commitments will be fulfilled.
* In USF Dugan areas that are currently served by USF Bestway (Texas) and USF Holland (primarily the upper Midwest and the Southeast regions), customers can immediately, and seamlessly, transition their business to these companies.
* USF Bestway, USF Holland and USF Reddaway will expand their coverage to collectively fill the areas previously served by USF Dugan.
The announcement went on to say:
* Effective July 11, 2005, USF Bestway will expand its service coverage into Arkansas, Louisiana, Mississippi, Oklahoma and portions of Kansas. Currently, USF Bestway has operations in Arizona, California, Nevada, New Mexico and Texas.
* Also effective July 11, 2005, USF Holland will expand its service coverage into Missouri and Northeastern Kansas. Currently, USF Holland serves most of the upper Midwest and Southeast regions of the United States.
* On July 11, 2005, USF Reddaway will assume responsibility for the Denver, Colorado service territory previously operated by USF Dugan.
* New Penn Motor Express and USF Glen Moore are not directly impacted by this realignment.
Yellow Roadway expects to include one-time charges related to the closure of USF Dugan and the expanded service coverage of USF Bestway, USF Holland and USF Reddaway in purchase accounting in accordance with generally accepted accounting principles.
For more information, go to www.yellowroadway.com.



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