P.A.M. Transportation Services, Inc. Announces Results for the Second Quarter Ended June 30, 2008

TONTITOWN, Ark., July 30, 2008 (PRIME NEWSWIRE) -- P.A.M. Transportation Services, Inc. (Nasdaq:PTSI) today reported net loss of $1,331,719 or diluted and basic loss per share of $0.14 for the quarter ended June 30, 2008, and net loss of $4,160,044 or diluted and basic loss per share of $0.43 for the six month period then ended. These results compare to net income of $2,192,294 or diluted and basic earnings per share of $0.21, and net income of $3,457,225 or diluted and basic earnings per share of $0.34, respectively, for the three and six months ended June 30, 2007.

Operating revenues were $110,929,472 for the second quarter of 2008, a 4.0% increase compared to $106,699,616 for the second quarter of 2007. Operating revenues were $216,750,167 for the six months ended June 30, 2008, a 5.5% increase compared to $205,508,072 for the six months ended June 30, 2007.

Robert W. Weaver, President of the Company, commented, "Although our second quarter 2008 resulted in a loss, we experienced progressive improvement during the quarter in demand for our services, asset utilization and an incremental increase in rates per loaded mile. June posted the most significant progress and resulted in positive net income, although not at a level high enough to overcome the losses incurred in April and May.

"The largest negative impact on our expenses during the quarter continued to be the soaring cost of diesel, which represented an approximate $.06 increase per mile, net of fuel surcharge, for the second quarter 2008 compared to the second quarter 2007. We have maintained our focus on fuel saving strategies, and continue to see benefits from initiatives taken.

"One of our objectives in 2008 has been to broaden our customer base. Our non-automotive business increased 13.4% for the quarter ended June 30, 2008 compared to the quarter ended June 30, 2007 through the expansion of both retail and consumer goods business. We are seeing increased bid activity and subsequent awards at higher rate levels in all areas of our business, including automotive. Our percentage of automotive revenue might fluctuate in the near term as we take opportunities to balance lanes quickly with freight offering favorable rates.

"We are optimistic that if the trend in industry reductions in available truck capacity continues it will have a positive effect on demand for our services and provide opportunities to negotiate rates that more fairly compensate us for our services."

P.A.M. Transportation Services, Inc. is a leading truckload dry van carrier transporting general commodities throughout the continental United States, as well as in the Canadian provinces of Ontario and Quebec. The Company also provides transportation services in Mexico through its gateways in Laredo and El Paso, Texas under agreements with Mexican carriers.

The P.A.M. Transportation Services, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=5148

Certain information included in this document contains or may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may relate to expected future financial and operating results or events, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, excess capacity in the trucking industry; surplus inventories; recessionary economic cycles and downturns in customers' business cycles; increases or rapid fluctuations in fuel prices, interest rates, fuel taxes, tolls, license and registration fees; the resale value of the Company's used equipment and the price of new equipment; increases in compensation for and difficulty in attracting and retaining qualified drivers and owner-operators; increases in insurance premiums and deductible amounts relating to accident, cargo, workers' compensation, health, and other claims; unanticipated increases in the number or amount of claims for which the Company is self insured; inability of the Company to continue to secure acceptable financing arrangements; seasonal factors such as harsh weather conditions that increase operating costs; competition from trucking, rail, and intermodal competitors including reductions in rates resulting from competitive bidding; the ability to identify acceptable acquisition candidates, consummate acquisitions, and integrate acquired operations; a significant reduction in or termination of the Company's trucking service by a key customer; and other factors, including risk factors, included from time to time in filings made by the Company with the Securities and Exchange Commission. The Company undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.

 P.A.M. Transportation Services, Inc. and Subsidiaries
 Key Financial and Operating Statistics
                  Quarter ended June 30,  Six Months Ended June 30,
                    2008         2007         2008         2007
                ------------ ------------ ------------ ------------
 Revenue, before
  fuel surcharge $84,679,919  $92,546,591 $171,125,119 $180,090,194
 Fuel surcharge   26,249,553   14,153,025   45,625,048   25,417,878
                ------------ ------------ ------------ ------------
                 110,929,472  106,699,616  216,750,167  205,508,072

   wages and
   benefits       31,615,556   34,035,718   66,113,210   67,740,716
  Fuel expense    43,124,281   29,017,433   80,547,225   53,609,075
   supplies        7,451,638    7,953,705   15,470,989   15,435,712
  Rent and
   tion           10,841,916    9,534,669   20,361,938   19,568,706
   amortization    9,298,110   10,150,047   18,285,168   19,498,930
   taxes and
   license         4,164,097    4,602,810    8,523,124    8,954,113
  Insurance and
   claims          4,103,374    4,666,664    8,655,250    9,202,477
   and utilities     756,411      762,153    1,568,107    1,530,316
  Other            1,118,372    1,792,936    2,501,963    3,433,283
  (Gain) loss on
   of equipment      (14,059)      10,877      219,740       28,699
                ------------ ------------ ------------ ------------
 Total operating
  expenses       112,459,696  102,527,012  222,246,714  199,002,027

  (loss) income   (1,530,224)   4,172,604   (5,496,547)   6,506,045

 Other income
   expense          (532,157)    (675,433)  (1,100,769)  (1,162,783)
  Other              (13,273)     166,292     (219,077)     408,235
                ------------ ------------ ------------ ------------

 Total other
  (expense)         (545,430)    (509,141)  (1,319,846)    (754,548)
                ------------ ------------ ------------ ------------

 (Loss) income
  before income
  taxes           (2,075,654)   3,663,463   (6,816,393)   5,751,497
 Income tax
  expense           (743,935)   1,471,169   (2,656,349)   2,294,272
                ------------ ------------ ------------ ------------

 Net (loss)
  income         $(1,331,719)  $2,192,294  $(4,160,044)  $3,457,225
                ------------ ------------ ------------ ------------

 Diluted (loss)
  earnings per
  share               $(0.14)       $0.21       $(0.43)       $0.34
                ============ ============ ============ ============

 Average shares
  outstanding -
  Diluted          9,708,233   10,307,251    9,751,739   10,307,422
                ============ ============ ============ ============

  Operations       Quarter ended June 30,  Six Months Ended June 30,
 -----------          2008        2007         2008         2007
                  ----------- -----------  -----------  -----------
 Total miles       57,598,248  64,902,926  119,673,202  125,524,123
 Operating ratio*      102.58%      95.37%      104.01%       96.37%
 Empty miles
  factor                 7.20%       6.19%        7.23%        6.30%
 Revenue per total
  mile, before
  fuel surcharge        $1.30       $1.30        $1.28        $1.29
 Total loads           89,375      89,827      186,318      173,077
 Revenue per truck
  per work day           $578        $632         $587         $612
 Revenue per truck
  per week             $2,890      $3,160       $2,935       $3,060
 Average company
  trucks                1,985       2,055        1,992        2,036
 Average owner
  operator trucks          46          57           50           54

 Total revenue     $9,550,569  $8,477,977  $17,639,665  $17,647,310
 Operating ratio        95.70%      96.56%       96.14%       96.67%

                                              As of June 30,
                                            2008          2007
                                        ------------  ------------
 Long-term debt to book capitalization         17.05%        19.52%
 Shareholders' equity                   $170,735,263  $188,406,097

 * Operating ratio has been calculated based upon total operating
   expenses, net of fuel surcharge, as a percentage of revenue,
   before fuel surcharge. We used revenue, before fuel surcharge,
   and operating expenses, net of fuel surcharge, because we believe
   that eliminating this sometimes volatile source of revenue
   affords a more consistent basis for comparing our results of
   operations from period to period.
CONTACT:  P.A.M. Transportation Services, Inc.
          Robert W. Weaver
          (479) 361-9111
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