Transit Group Acquires Priority Transportation,Inc.

ATLANTA, Ga.--(BUSINESS WIRE)--Jan. 20, 1999--Transit Group, Inc. (Nasdaq Small Cap:TRGP) today announced that it has completed the acquisition of Priority Transportation, Inc., a privately held truckload carrier headquartered in Olive Branch, Mississippi. The acquisition, valued at approximately

Priority Transportation, operating a fleet of about 150 power units and 400 trailers from its suburban Memphis, Tennessee location, reported annual sales of approximately $23.5 million for its most recent fiscal year, which ended June 30, 1998. The company provides nationwide service to a variety of customers, including those in the electronics and computer components industries.

Commenting on the announcement, Transit Group's President and Chief Executive Officer Philip A. Belyew said, "We are very pleased to make this new affiliation with Priority Transportation. It is a well-run, profitable organization with a focus on medium-haul loads, a strong customer base and attractive transportation lanes, all of which complement our existing operations nicely. As such, we believe Priority offers several opportunities for us to realize additional synergies and scale economies as part of our ongoing efforts to enhance Transit Group's future growth and earnings potential." Belyew noted that the acquisition is expected to be immediately accretive to the Company's 1999 earnings.

Comments in this news release regarding the Company's business which are not historical facts are forward looking statements that involve risks and uncertainties. Among these risks are that the Company is in a highly competitive business, has history of operating losses, and is pursuing a growth strategy that relies in part on the completion of acquisitions of companies in the trucking industry. There can be no assurance that in its highly competitive business environment, the Company will successfully improve its operating profitability or consummate such acquisitions.

Transit Group, headquartered in Atlanta, Georgia, is a holding company in the business of acquiring and consolidating short-, medium- and long-haul trucking companies, particularly truckload carriers. Trucking companies that operate as parts of Transit Group are located in Alabama, Florida, Indiana, Kentucky, Mississippi, New York, North Carolina, and Canada, and comprise a fleet of approximately 1,350 trucks and 3,400 trailers, serving customers throughout the U.S. and in Canada.