U.S. Xpress Enterprises, Inc. Reports Second Quarter Results; 39% Revenue Growth and Significant Earnings Improvement

U.S. Xpress Enterprises, Inc. (NASDAQ/NM: XPRSA)
announced operating revenue and earnings for the second quarter and
six months ended June 30, 2006.

   Financial Highlights

   Revenue for the second quarter of 2006 increased 39.2% to $389.5
million compared with $279.9 million in the second quarter of 2005.
Net income for the second quarter increased to $5.7 million, or $0.37
per diluted share, compared with net income of $482,000, or $0.03 per
diluted share in the prior year period. The 2005 second quarter
results include a one-time pre-tax charge of $2.8 million related to
the sale and exit of its airport-to-airport business. Before the
one-time charge, the Company reported net income of $1.9 million, or
$0.12 per diluted share, in the prior-year period.
   For the six months ended June 30, 2006, revenue increased 25.5% to
$689.2 million from $549.0 million in the prior-year period. For the
first six months of 2006, the Company reported net income of $6.5
million, or $0.42 per diluted share, compared with a net loss (after
the one-time charge) of $1.6 million, or $0.10 per diluted share, for
the prior-year period. Before the charge, the Company reported a net
loss of $196,000, or $0.01 per diluted share, for the first six months
of 2005.
   On February 28, 2006, the Company acquired additional equity in
both Arnold Transportation and Total Transportation, increasing its
ownership interest in each to 80% from 49%. Accordingly, the financial
results from February 28, 2006 of Arnold and Total are included in the
Company's consolidated financial statements. Consolidated revenue,
excluding fuel surcharge, and operating income for the second quarter
of 2006 includes $78.3 million of revenue and $4.8 million in
operating income of Arnold and Total. The six months ended June 30,
2006, includes $107.4 million of revenue and $6.6 million in operating
income of Arnold and Total.

   Truckload Operations

   During the second quarter, truckload revenue, excluding the effect
of fuel surcharges, increased 38.4% to $307.9 million from $222.4
million a year ago. The increase in truckload revenue was driven by
contributions from Arnold and Total and a 3.2% increase in the revenue
of the U.S. Xpress truckload operations to $229.6 million. Truckload
operating income for the quarter increased by 93.3% to $13.8 million
from $7.1 million in the prior-year quarter due to the consolidation
of Arnold and Total, which contributed $4.8 million in operating
income, and a 25.6% increase in operating income to $9.0 million for
the U.S. Xpress truckload operations. The improvement in operating
income of the U.S. Xpress truckload operations reflects improved
yields driven by a 3.7% increase in revenue per revenue mile and a
lower percentage of empty miles.
   Co-Chairman, Patrick Quinn, stated, "We are pleased with the
improvements realized in our U.S. Xpress truckload operations during
the second quarter. The results demonstrate the progress we are making
in improving the performance of our over-the-road and regional solo
fleets as well as the benefits of a continued focus on growing our
dedicated, expedited truck and rail services. The results of Arnold
and Total, which were in line with our expectations, also contributed
to the strong earnings growth in the quarter."

   Xpress Global Systems

   Revenue of Xpress Global Systems declined to $25.6 million in the
quarter compared with $37.8 million in the comparable 2005 quarter due
primarily to the sale and exit from the airport-to-airport business in
the second quarter of 2005. Xpress Global Systems' operating income
for the second quarter was $1.7 million compared with a $5.6 million
operating loss in the prior-year quarter, which includes a $2.8
million one-time charge for the loss on the sale of the
airport-to-airport business.
   Mr. Quinn added, "The management team at Xpress Global Systems did
an excellent job of executing its business plan during what is
seasonally a strong quarter for its floor covering business. The
improvements in customer on time service and the yield management
programs we implemented over the last year continue to pay off for us,
and we have exhibited much better cost control.
   "Looking forward, for the remainder of the year we are expecting a
solid freight demand environment, along with constrained capacity
growth in the truckload market due to a very tight driver market.
Assuming these factors and given the turnaround of Xpress Global, the
success of Arnold and Total, and the improving trends in our U.S.
Xpress truckload operations, we continue to be optimistic about the
remainder of the year."
   U.S. Xpress Enterprises will host a conference call to discuss
second quarter results on July 21, 2006, at 11:00 a.m. EDT. The number
to call for this interactive teleconference is [phone]. A
replay of the conference call will be available through July 28, 2006,
by dialing [phone] and entering the confirmation number,
4324249.
   The live broadcast of U.S. Xpress Enterprises' quarterly
conference call will be available online at the Company's website,
www.usxpress.com, as well as
http://www.videonewswire.com/event.asp?id=34455 on July 21, 2006,
beginning at 11:00 a.m. EDT. The online replay will follow shortly
after the call and continue through August 21, 2006.
   U.S. Xpress Enterprises, Inc. is the fifth largest publicly owned
truckload carrier in the United States, measured by revenue. The
Company provides dedicated, regional, and expedited team truckload
services throughout North America, with regional capabilities in the
West, Midwest, and Southeastern United States. The Company is one of
the largest providers of expedited and time-definite services in the
truckload industry and is a leader in providing expedited intermodal
rail services. Xpress Global Systems, Inc., a wholly owned subsidiary,
is a provider of transportation, warehousing, and distribution
services to the floor covering industry. The Company participates in
logistics services through its joint ownership of Transplace, an
Internet-based global transportation logistics company. Additionally,
U.S. Xpress has an 80% ownership interest in Arnold Transportation
Services, Inc., which provides regional, dedicated, and medium
length-of-haul services with a fleet of approximately 1,500 trucks,
and Total Transportation of Mississippi and affiliated companies, a
truckload carrier that provides medium length of haul and dedicated
dry-van service with a fleet of approximately 500 trucks primarily in
the Eastern United States. Please visit the Company's website at
www.usxpress.com.

   This press release contains certain statements that may be
considered "forward-looking statements" within the meaning of Section
21E of the Securities Exchange Act of 1934, as amended, and Section
27A of the Securities Act of 1933, as amended. These statements
generally may be identified by their use of terms or phrases such as
"expects," "estimates," "anticipates," "projects," "believes,"
"plans," "intends," "may," "will," "should," "could," "potential,"
"continue," "future," and terms or phrases of similar substance. In
this press release, these statements include, without limitation,
statements relating to anticipated freight demand, competition for
drivers, tractor capacity, and the performance of truckload
operations, Arnold and Total, and Xpress Global Systems. The following
factors, among others, could cause actual results to differ materially
from those expressed in forward-looking statements: the risk that we
will be unable to obtain the level of rate increases and improvement
in freight mix that we expect regardless of increased freight volumes;
the risk that our perception of industry fundamentals is incorrect and
an improvement in freight volumes and pricing does not occur; the risk
that the actions we have taken to increase margins and reduce costs in
our Xpress Global segment will not be effective; further increases in
the compensation of or difficulty in attracting and retaining
qualified drivers and independent contractors; further fluctuations in
the price or availability of diesel fuel or in surcharge collection;
recessionary economic cycles and downturns in customers' business
cycles; excess tractor or trailer capacity in the trucking industry;
decreased demand for our services or loss of one or more of our major
customers; surplus inventories; strikes, work slow downs, or work
stoppages at our facilities or at customers, ports, or other shipping
related facilities; increases in interest rates, fuel taxes, tolls,
and license and registration fees; increases in the prices paid for
new revenue equipment and changes in the resale value of our used
equipment; elevated experience in the frequency and severity of claims
relating to accident, cargo, workers' compensation, health, and other
claims; increased insurance premiums; fluctuations in claims expenses
that result from high self-insured retention amounts and differences
between estimates used in establishing and adjusting claims reserves
and actual results over time; adverse changes in claims experience and
loss development factors; seasonal factors such as harsh weather
conditions that increase operating costs; competition from trucking,
rail, and intermodal competitors; regulatory requirements that
increase costs or decrease efficiency, including revised
hours-of-service requirements for drivers and new emissions control
regulations; our ability to execute our business strategy; our ability
to grow our revenue at historical rates; the loss of one of our senior
officers; our ability to finance revenue equipment purchases and other
capital requirements, and to do so on acceptable terms; the risk that
our substantial indebtedness and operating lease obligations could
adversely impact our ability to respond to changes in our industry or
business, or that we could be unable to comply with the restrictive
and financial covenants contained therein; the risk that railroad
service instability could increase our costs and reduce our ability to
offer expedited intermodal rail service; the risk of adverse results
at Arnold Transportation or Total Transportation of Mississippi that
are included in our results; our ability to identify acceptable
acquisition candidates, consummate acquisitions, and integrate
acquired operations; the number of shares repurchased, if any; and the
effects of repurchasing the shares on debt, equity, and liquidity;
Readers should review and consider these factors along with our
various disclosures in filings with the Securities and Exchange
Commission. We disclaim any obligation to update or revise any
forward-looking statements to reflect actual results or changes in the
factors affecting the forward-looking information.

-0-
*T
            U.S. XPRESS ENTERPRISES, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                 (In Thousands, Except Per Share Data)
                              (Unaudited)

                               Three Months Ended   Six Months Ended
                                    June 30,            June 30,
                               ------------------- -------------------
                                 2006      2005      2006      2005
                               --------- --------- --------- ---------
Operating Revenue:
   Revenue, before fuel
    surcharge                  $331,976  $252,476  $594,441  $500,983
   Fuel surcharge                57,486    27,408    94,730    48,045
                               --------- --------- --------- ---------
   Total operating revenue     $389,462  $279,884  $689,171  $549,028
                               --------- --------- --------- ---------

Operating Expenses:
  Salaries, wages and benefits  127,141    99,865   229,995   195,172
  Fuel and fuel taxes            89,196    53,741   155,533   101,110
  Vehicle rents                  19,333    17,012    37,731    34,468
  Depreciation and
   amortization, net of gain
   on sale                       15,794    11,193    27,668    22,529
  Purchased transportation       61,671    46,417   108,269    98,089
  Operating expense and
   supplies                      24,866    18,991    44,101    38,524
  Insurance premiums and
   claims                        16,285    10,991    29,553    21,573
  Operating taxes and licenses    4,328     3,470     7,991     6,734
  Communications and utilities    3,606     2,606     6,478     5,603
  General and other operating    11,712    11,285    21,564    22,868
  Loss on sale and exit of
   business                           -     2,787         -     2,787
                               --------- --------- --------- ---------
    Total operating expenses    373,932   278,358   668,883   549,457
                               --------- --------- --------- ---------

Income (Loss) from Operations    15,530     1,526    20,288      (429)


Interest Expense, net             4,690     1,758     7,789     3,785
Early extinguishment of debt          -         -         -       201
Equity in (income) loss of
 affiliated companies               341      (935)      539    (1,251)
Minority Interest                   365         -       523         -
                               --------- --------- --------- ---------
                                  5,396       823     8,851     2,735

Income (Loss) Before Income
 Taxes                           10,134       703    11,437    (3,164)

Income Tax Provision (Benefit)    4,410       221     4,978    (1,519)
                               --------- --------- --------- ---------

Net Income (Loss)              $  5,724  $    482  $  6,459  $ (1,645)
                               ========= ========= ========= =========

Earnings (Loss) Per Share -
 basic                         $   0.37  $   0.03  $   0.42  $  (0.10)
                               ========= ========= ========= =========
Weighted average shares -
 basic                           15,321    16,196    15,323    16,223
                               ========= ========= ========= =========
Earnings (Loss) Per Share -
 diluted                       $   0.37  $   0.03  $   0.42  $  (0.10)
                               ========= ========= ========= =========
Weighted average shares -
 diluted                         15,614    16,250    15,559    16,223
                               ========= ========= ========= =========



            U.S. XPRESS ENTERPRISES, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF OPERATIONS
 (In Thousands, Except Per Share Data - Net of Fuel Surcharge Revenue)
                              (Unaudited)


                               Three Months Ended    Six Months Ended
                                    June 30,             June 30,
                               ------------------   ------------------
                                 2006      2005       2006      2005
                               --------  --------   -------- --------
Operating Revenue                  100%      100%       100%     100%
                               --------  --------   -------- --------

Operating Expenses:
  Salaries, wages and benefits    38.3      39.6       38.7     39.0
  Fuel and fuel taxes              9.5      10.4       10.2     10.6
  Vehicle rents                    5.8       6.7        6.4      6.9
  Depreciation and
   amortization, net of gain on
   sale                            4.8       4.4        4.7      4.5
  Purchased transportation        18.6      18.4       18.2     19.6
  Operating expense and
   supplies                        7.5       7.5        7.4      7.7
  Insurance premiums and claims    4.9       4.4        5.0      4.3
  Operating taxes and licenses     1.3       1.4        1.3      1.3
  Communications and utilities     1.1       1.0        1.1      1.1
  General and other operating      3.5       4.5        3.6      4.6
  Loss on sale and exit of
   business                        0.0       1.1        0.0      0.5
                               --------  --------   -------- --------
   Total operating expenses       95.3      99.4       96.6    100.1
                               --------  --------   -------- --------

Income (Loss) from Operations      4.7       0.6        3.4     (0.1)


Interest Expense, net              1.4       0.7        1.3      0.7
Early extinguishment of debt       0.0       0.0        0.0      0.0
Equity in (income) loss of
 affiliated companies              0.1      (0.4)       0.1     (0.2)
Minority Interest                  0.1       0.0        0.1      0.0
                               --------  --------   -------- --------
                                   1.6       0.3        1.5      0.5

Income (Loss) Before Income
 Taxes                             3.1       0.3        1.9     (0.6)

Income Tax Provision (Benefit)     1.3       0.1        0.8     (0.3)
                               --------  --------   --------  --------

Net Income (Loss)                  1.8%      0.2%       1.1%    (0.3)%
                               ========  ========   ========  ========


                     U.S. XPRESS ENTERPRISES, INC.
                         KEY OPERATING FACTORS

                 Three Months Ended          Six Months Ended
                      June 30,                   June 30,
                                       %                          %
                   2006      2005    Change   2006      2005    Change
                 --------- --------- ------ --------- --------- ------
OPERATING
 RATIO (1)           95.3%     99.4%  -4.1%     96.6%    100.1%  -3.5%

OPERATING REVENUE:
  Truckload,
   net of fuel
   surcharge (2) $307,913  $222,428   38.4% $549,220  $437,549   25.5%
  Fuel Surcharge   57,486    27,408  109.7%   94,730    48,045   97.2%
  Xpress Global
   Systems         25,607    37,829  -32.3%   48,040    78,858  -39.1%
  Inter-company    (1,544)   (7,781) -80.2%   (2,819)  (15,424) -81.7%
                 --------- --------- ------ --------- --------- ------
Total Operating
 Revenue         $389,462  $279,884   39.2% $689,171  $549,028   25.5%

OPERATING
 INCOME (LOSS):
  Truckload (2)   $13,836    $7,158   93.3%  $18,225    $8,660  110.5%
  Xpress Global
   Systems(3)       1,694    (5,632)   n/a     2,063    (9,089)   n/a
                 --------- --------- ------ --------- --------- ------
Total Operating
 Income           $15,530    $1,526    n/a   $20,288     $(429)   n/a

TRUCKLOAD
 STATISTICS: (2)
Revenue Per
 Mile (4)          $1.616    $1.516    6.6%   $1.585    $1.500    5.7%

Revenue Per
 Total Mile (4)    $1.422    $1.345    5.7%   $1.395    $1.336    4.4%

Tractors (at end
 of period)-
  Company Owned     6,016     4,523   33.0%    6,016     4,523   33.0%
  Owner Operators     914       519   76.1%      914       519   76.1%
                 --------- --------- ------ --------- --------- ------
Total Tractors
 (at end of
 period)            6,930     5,042   37.4%    6,930     5,042   37.4%

Average Number
 of Tractors in
 Fleet During
 Period             6,943     4,966   39.8%    6,296     4,976   26.5%

Average Revenue
 Miles Per
 Tractor Per
 Period (4)(5)     24,624    25,619   -3.9%   48,796    50,136   -2.7%

Average Revenue
 Per Tractor Per
 Period (4)(5)    $40,577   $39,781    2.0%  $79,154   $77,402    2.3%

Total Revenue
 Miles (6)        188,824   144,757   30.4%  342,734   287,566   19.2%

Total Miles (6)   214,563   163,085   31.6%  389,307   322,938   20.6%

Average Length
 of Haul              584       650  -10.2%      601       675  -11.0%

Empty Mile
 Percentage         12.00%    11.24%   6.8%    11.96%    10.95%   9.2%


                             June 30, 2006        December 31, 2005
                          -------------------    -------------------
BALANCE SHEET
 DATA:
  Total Assets                  $820,697               $607,384
  Total Equity                   238,480                232,412
  Long-term Debt, including      317,698                177,155
   Current Maturities
   and Securitization


(1) Operating ratio as reported in this press release is based upon
    total operating expenses, net of fuel surcharges, as a percentage
    of revenue, before fuel surcharge.

(2) Data for truckload includes data for all truckload operations,
    including the following from their dates of consolidation: Arnold
    Transportation, Inc. and Total Transportation of Mississippi, Inc.
    in March 2006.

(3) Includes the one-time pre-tax charge of $2.8 million related to
    the sale and exit of the airport-to-airport business.

(4) Net of fuel surcharge revenues.

(5) Excludes revenue and miles from expedited intermodal rail
    services.

(6) Includes miles of expedited intermodal rail services

*T