Vitran Report 2000 Second Quarter Results

• Vitran Corporation Inc. Balance Sheet
• Vitran Corporation Inc. Statements Of Income

TORONTO--(BUSINESS WIRE)--Aug.2, 2000-- Vitran Corporation Inc. (TSE: VTN.A, AMEX: VVN), a North American transportation and logistics firm, today announced second quarter financial results and six-month results for the periods ended June 30, 2000 (all figures reported in Canadian dollars).

Revenues for the three months ended June 30, 2000 rose 8% to $130,286,000, compared to $120,817,000 in the 1999 second quarter. Vitran achieved record EBITDA of $10,627,000 in the 2000 second quarter, compared to $10,487,000 in the 1999 three-month period, and operating income was a record $7,368,000, versus $7,296,000 in the year-earlier period. Net income during the 2000 second quarter was $3,415,000 or $0.35 basic earnings per share ($0.32 fully diluted), compared to $3,572,000, or $0.36 basic earnings per share ($0.33 fully diluted) in the year-ago second quarter. Per share results are based on 9,887,316 (11,012,116 fully diluted) and 9,889,756 (10,929,056 fully diluted) weighted average shares outstanding during the 2000 and 1999 second quarter periods, respectively.

Revenues for the first six months of 2000 rose 6% to $253,308,000, versus $238,849,000 in the comparable prior year period. Vitran achieved EBITDA of $18,109,000 in the comparable 1999 six-month period, and operating income was $11,548,000, compared to $12,299,000 in the six-month period ended June 30, 1999. Net income during the current six-month period was $5,010,000 or $0.51 basic earnings per share ($0.46 fully diluted), compared to $5,301,000, or $0.54 basic earnings per share ($0.49 fully diluted) during the year-ago first half. Per share results are based on 9,911,149 (11,035,949 fully diluted) and 9,887,809 (10,927,109 fully diluted) weighted average shares outstanding during the 2000 and 999 six-month periods, respectively. Commenting on Vitran's results, President and Chief Executive Officer, Richard D. McGraw, stated, "The Canadian LTL business unit performed very well during the period, but the most significant accomplishment of the 2000 second quarter was a continuation of the solid results we achieved at the end of the first quarter at our US Central States LTL operations, Vitran Express. Through a strong team effort, Vitran Express generated 16.8% top-line revenue growth over the previous year, with an operating ratio of 93.9%, inclusive of goodwill amortization."

For the second quarter, revenue for the combined LTL operations increased 11.1% over the same period in 1999, to approximately $95,000,000. LTL shipments increased 10.4%, LTL tonnage increased 8.9% and there was improvement in yield of 2.1%. The LTL pricing environment has remained fairly stable year-to-date and capacity levels have continued to be reasonable. In order to address increasing costs of operation, Vitran Express recently announced a 5.9% price increase for its US LTL business, effective August 28, 2000.

The truckload business, which has been a steady performer, was impacted by a shortage of owner operators and consequently did not generate a favorable comparison with last year's second quarter. Truckload revenues were 6.6% lower and the operating ratio declined from 93.3% to 95.1%. Management has taken a number of initiatives that are anticipated to restore the operating performance.

Mr. MrGraw, concluded, "If the present economic and Company-specific trends continue, Vitran Corporation should achieve stronger financial results in the second half of 2000."

Vitran Corporation Inc. is a North American group of transportation companies offering less-than-truckload, truckload, intermodal marketing, truck brokerage and logistics services. Further Company information is available at http://www.vitran.com.

This news announcement contains certain forward-looking information that is subject to certain risks and uncertainties as indicated from time to time in the Company's 20-F and other filings with the Securities and Exchange Commission. Included among these risks and uncertainties are the future performance of the economy, competitive and pricing pressures, fuel costs and other factors impacting the transportation industry.

Vitran Corporation Inc.
Balance Sheet
June 30, 2000 (unaudited)
(in thousands of Canadian dollars)

Vitran Corporation Inc.
Statements Of Income
(in thousands, except share and per share amounts)
(Canadian dollars)