I don't think I've heard a news broadcast or read a newspaper this year, that hasn't talked about the instability of the economy and how it is affecting businesses around the country. Fewer goods are being purchased and less are produced. This results in less freight to haul. The price of fuel remains high, dramatically increasing the cost of doing business. Increases in customer bankruptcies make the risk of doing business even greater. The cost of insurance continues to go up, and is expected to double in 2002. Historically the trucking industry feels the brunt of economic downturns, and this time is no exception.

Despite all of this, we have maintained a very positive position in the market. Diversification into the Logistics and the Caribbean markets have proven to be very positive, as these markets are very strong. While most carriers have reduced their capital expenditures, we have continued to replace and upgrade trailing equipment. We have started a relatively aggressive program of upgrading specialized trailing equipment, especially step decks, RGN's and two and three axle RGN expandables. Two 10 axle trailers have been added to the Heavy Haul fleet. Most of these will be delivered in July, as 2002 model year equipment. Our trucks are full. We have begun enforcing stricter qualification guidelines for drivers and contractors joining ATS. The outside sales staff is concentrating on differentiating ourselves from our competitors. For example, Specialized sales people have focused on expanding our over dimensional freight. This has proven to be a successful tactic. Inside sales has been expanded in all divisions.

Market conditions are assessed on a daily basis, and adjustments are made to strategically position ATS in the market place. We continue to grow in spite of the tough economic times.

Rollie Anderson, Executive Vice President, Anderson Trucking Service, Inc.

Rolling Along presents thoughts from a member of the ATS Management team.