Central Freight Lines, Inc. Announces Preliminary Proxy Filing for Merger; Obtains Replacement Revenue Equipment

WACO, Texas, April 17  /PRNewswire-FirstCall/ -- Central Freight Lines, Inc. (NASDAQ:CENF) announced today that it has made a preliminary proxy statement filing for its previously announced merger transaction.  The merger agreement provides that a company controlled by Jerry Moyes and certain related parties would become the owners of Central, and Central would cease to be a publicly traded company.  Central also announced today that it has taken possession of approximately $5.3 million in revenue equipment as the result of a transaction facilitated by Mr. Moyes.

Merger Update

On January 30, 2006, Central announced that it had entered into an Agreement and Plan of Merger (the "Merger Agreement"), with North American Truck Lines, LLC ("NATL") and Green Acquisition Company ("Green").  Under the Merger Agreement, Green will merge with and into Central (the "Merger"), with Central continuing as the surviving corporation.  Both NATL and Green are controlled by Mr. Moyes, with Green being a wholly owned subsidiary of NATL.

On April 17, 2006, Central filed a preliminary proxy statement with the Securities and Exchange Commission (the "SEC") for its 2006 Annual Meeting of Stockholders.  Once the filing is reviewed and finalized, a definitive proxy statement will be mailed to Central's stockholders to solicit proxies for voting at the Annual Meeting.  According to today's filing, the Merger will be submitted to a vote of Central's stockholders at that Annual Meeting.

In announcing the filing, Bob Fasso, Central's Chief Executive Officer and President said: "We are very pleased that this important step has been taken toward completion of the transaction with Jerry Moyes and his companies.  We currently believe that the Merger can be completed in July of 2006."

Jerry Moyes added:  "Like Bob, I am pleased that we have taken this additional step forward today.  I look forward to completing this transaction as soon as possible."

Stockholders are urged to read the definitive proxy statement carefully when it becomes available because it will contain important information about Central, the merger transaction, and related matters.  Stockholders will be able to obtain free copies of the proxy statement and other documents filed with the SEC by Central through the SEC's web site at http://www.sec.gov/.  In addition, stockholders will be able to obtain free copies of the definitive proxy statement from the company.

Revenue Equipment

Central also announced today that it has taken possession of approximately $5.3 million in revenue equipment and began operating that equipment in its fleet on April 15.  The revenue equipment was made available to Central through arrangements facilitated by Mr. Moyes, and is being leased from one of his affiliates on a short-term basis pending completion of Merger on terms that Central believes are favorable.

About Central

Central Freight Lines, Inc. is a non-union, less-than-truckload carrier specializing in regional overnight and second day markets in the Midwest, Southwest, West Coast, and Pacific Northwest.  Utilizing marketing alliances, Central also provides service to the Great Lakes, Northeast, Southeast, Mexico, and Canada.

This press release contains forward-looking statements that involve risk, assumptions, and uncertainties that are difficult to predict.  Statements that constitute forward-looking statements are usually identified by words such as "anticipates," "believes," "estimates," "projects," "expects," "plans," "intends," or similar expressions.  These statements are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended.  Such statements are based upon the current beliefs and expectations of our management and are subject to significant risks and uncertainties.  Actual events may differ materially from those set forth in the forward-looking statements.  We undertake no obligation to update any of these forward-looking statements.

With respect to statements regarding the consummation of the Merger, the following factors, among others, could cause actual results to differ materially from those in forward-looking statements:  the risk that our business will suffer due to uncertainties caused by the announcement of the transaction; the risk that we may not be able to obtain third party and stockholder approvals necessary to consummate the transaction; as well as the risk that the transaction will not close for other reasons.

   Corporate Contact:
   Jeff Hale, Chief Financial Officer
   [phone]
   

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DATASOURCE: Central Freight Lines, Inc.



CONTACT:  Jeff Hale, Chief Financial Officer of Central Freight Lines,

Inc., [phone], or  



Web site:  http://www.sec.gov/ 

Web site:  http://www.centralfreight.com/ 

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