Carolina Pacific Distribution

During 1999, we continued to expand our business and take advantage of new opportunities to enhance our growth prospects. From a revenues standpoint, these efforts produced the most successful year in our history. We witnessed ongoing internal growth coupled with the positive impact of recently acquired operations. In a strategic sense, the strong revenue gains of 1999 underscored the ongoing expansion of our customer base and the strengthening of our relationships with core shippers.

Our industry continues to evolve rapidly in the face of current challenges and perennial issues concerning industry fragmentation, intense competition, limited capital and human resources - particularly qualified drivers, and increase emphasis on achieving an adequate return on capital.

We continue to refine our growth strategy to achieve greater stability in our operation and profit growth. We remain focused on expanding the reach of our Company through new and innovative technology and thinking.