The following table provides information about the company’s diesel fuel hedging instruments that are sensitive to changes in commodity prices. The table presents notional amounts in gallons and the weighted average contract price by contractual maturity date as of December 31, 1999 and comparative totals as of December 31, 1998. The company maintained fuel inventories for use in normal operations at December 31, 1999 and 1998, which were not material to the company’s financial position and represented no significant market exposure.

Outlook

The company is positioned for achieving profitable revenue growth at Yellow Freight as well as the regional group of companies. All of the company’s subsidiaries are focused on expanding their portfolio of transportation services. Yellow Freight’s introduction of Definite Delivery, its mid-tier time-definite ground service in 1999 and Exact Express, its premium tier time-definite expedited air service in 1998 are examples of the value added services our customers have demanded. All of the company’s subsidiaries continue to improve their productivity levels through implementation of best practices and investments in technology.

The company will continue to make significant investments in technology. Timely and accurate information is essential to improve service quality and meet increasing customer expectations for access to real-time information. The ability to deliver new transportation services and improve the quality of those services will be key to the successful transportation companies of the future.

The 1999 acquisition of Jevic has brought the regional transportation group to a critical mass, creating a number of options to unlock shareholder value, which the company will be evaluating. We are creating a management structure for our regional transportation group to ensure the regional group is well-focused on long-term strategies as well as shorter-term revenue and profit improvement.

In addition to the current subsidiaries and businesses, the company will also evaluate opportunities to grow earnings through e-commerce and the Internet as well as through future acquisitions. Management believes the company’s balance sheet and access to capital provide it the flexibility to reinvest in businesses as well as new business opportunities with attractive growth prospects.

Forward Looking Statements

Statements contained in, and preceding management’s discussion and analysis that are not purely historical are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the company’s expectations, hopes, beliefs and intentions on strategies regarding the future. It is important to note that the company’s actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including but not limited to inflation, labor relations, inclement weather, competitor pricing activity, expense volatility and a downturn in general economic activity.