Introduction Home Yellow is Number One Three components. One company. One-Stop Shopping Shareholders' Letter Management's Discussion and Analysis Financial Summary Consolidated Balance Sheets Statements of Consolidated Operations Statements of Consolidated Cash Flows Statements of Shareholders' Equity Statements of Comprehensive Income Notes to Financial Statements Independent Auditors' Report Supplementary Information Glossary Officers Corporate Information Board of Directors Back Cover

Glossary

Glossary
	Financial Terms Asset Backed Securitizations (ABS) Commercial paper backed by accounts receivable of the company and other unrelated companies originated by a third-party financial institution. Debt to Capitalization The percentage of a company financed by debt versus shareholders' investments. Debt to capitalization is calculated as debt, including ABS borrowings (total debt), less cash and cash equivalents, divided by total debt less cash and cash equivalents plus shareholders' equity. Free Cash Flow Cash provided by operations and stock option proceeds less cash reinvested in the business through capital expenditures. ABS activity and net cash from operating activities of discontinued operations are excluded from this calculation. Operating Ratio A key financial indicator in the transportation industry calculated by dividing operating expenses by operating revenue.	Return on Committed Capital (ROCC) One of the company's key metrics. ROCC is calculated by tax-effecting earnings before interest and taxes, excluding unusual items, and then dividing the result by committed capital. Committed capital is calculated as the sum of total debt, including ABS borrowings, plus shareholders' equity. Shareholders' Equity Per Share Total shareholders' equity at the end of the year divided by the common shares outstanding at the end of the year. Unusual Items Expense/ (Income) Items that management does not consider representative of the company's ongoing operations, including gains and losses on property dispositions. These transactions can distort the underlying results of operations and affect comparability between years.
	Industry Terms Brokerage Companies licensed by the Interstate Commerce Commission to engage in the business of arranging for transportation of property in interstate commerce. Less-than-truckload (LTL) A term that refers to shipments (typically less than 10,000 pounds) from several customers that are consolidated onto one trailer. Linehaul Movement of shipments between cities, excluding pick-up and delivery service.	Pick-up Service of a carrier in calling for and collecting shipments to be transported through its system. Service Center The location at which shipments are ordinarily loaded and dispatched. Truckload (TL) Large-volume shipments from a single customer that weigh more than 10,000 pounds. Web-native Technology built for and designed to be employed only via the Internet.
	Yellow Terms Customer Service Centers Centralized call centers in Des Moines, Iowa, and Sioux Falls, South Dakota, that handle pick-up and delivery for Yellow service centers throughout the nation and provide a host of value-added services. Definite Delivery A guaranteed on-time service at standard transit times with continuous shipment monitoring and proactive notification. Exact Express A guaranteed, time-definite, expedited service offering using a variety of air and ground solutions. ISO 9001: 2000 A comprehensive set of standards that measure quality within business organizations. Yellow recently was recertified under the ISO 9001: 2000 classification. The certification applies to "all activities related to freight transportation," extending to 2007. Certification programs are administered by the International Accreditation Registry, considered the leading authority on quality in the world. Meridian IQ A non-asset-based Yellow Corporation subsidiary and global transportation management company that plans and coordinates the movement of goods worldwide to provide customers a single source for transportation management solutions. MyYellow.com The web site that allows Yellow customers to conduct their transportation business and manage their supply chains online. PowerTMS A powerful transportation management system available to Meridian IQ customers. SCS Transportation, Inc. (SCST) A former Yellow Corporation subsidiary consisting of regional carriers Saia Motor Freight Line, Inc. and Jevic Transportation, Inc. The spin-off of SCST was effective September 30, 2002.	Standard Ground Yellow service offering with direct delivery points throughout North America. Standard Ground Regional Advantage Two- and three-day service in 500- to 1,500-mile length-ofhaul lanes. Yellow provides this service in 38,000 lanes in metro-to-metro markets throughout the central and eastern United States. Yellow Corporation A holding company that through wholly-owned operating subsidiaries offers its customers a wide range of asset and non-assetbased transportation services integrated by technology. Yellow Global A unit of Meridian IQ handling global transportation services with service to 88 countries worldwide. Yellow Technologies A Yellow Corporation subsidiary providing innovative technology solutions and services exclusively for Yellow operating companies. Yellow Transportation A Yellow Corporation subsidiary offering a full range of regional, national and international services for the movement of industrial, commercial and retail goods. Yes We Can Yellow brand promise articulating our commitment to 100 percent customer satisfaction.

Glossary