Old Dominion Freight Line Earns $0.60 Per Diluted Share For Second-Quarter 2007

Affirms Established Guidance for 2007 Earnings per Diluted Share in Range of $2.00 to $2.05

THOMASVILLE, N.C.--(BUSINESS WIRE)--

Old Dominion Freight Line, Inc. (NASDAQ: ODFL) today announced financial results for the second quarter and six months ended June 30, 2007. For the second quarter, revenue increased 8.7% to $359.6 million from $330.8 million for the second quarter of 2006. Net income increased to $22.5 million, or $0.60 per diluted share, for the second quarter of 2007 from $21.6 million or $0.58 per diluted share from the prior-year quarter. The results for the second quarter of 2007 include the final resolution of a customer pricing issue from periods prior to 2007 that resulted in the recognition of $2 million in revenue, or $0.03 per diluted share after tax. Old Dominion's operating ratio was 88.7% for the second quarter of 2007 compared with 88.3% for the second quarter of 2006.

For the first six months of 2007, revenue was $679.6 million, a 9.2% increase from $622.4 million for the comparable period in 2006. Net income for the first half of 2007 was $36.1 million, or $0.97 per diluted share, up from $34.6 million, or $0.93 per diluted share, for the first six months of 2006. The Company's operating ratio was 90.3% and 90.0% for the first half of 2007 and 2006, respectively.

"Old Dominion's second-quarter results exceeded our original expectations in an industry environment that remained as challenging as we anticipated," remarked Earl E. Congdon, Chairman and Chief Executive Officer of Old Dominion. "We are pleased with the growth in our total tons and total shipments of 7.4% and 4.8%, respectively, for the quarter while maintaining a disciplined approach to pricing. We produced a 1.1% increase in revenue per hundredweight, or a 1.7% increase excluding fuel surcharges, despite an increasingly competitive pricing environment and a 2.5% increase in weight per shipment, which generally has the effect of lowering yields. Our management team has done an excellent job of controlling variable costs in this challenging environment, as our operating ratio increased only 40 basis points from the second quarter last year, which was the best operating ratio in the Company's history.

"We added four service centers during the second quarter, consisting of three from the previously announced acquisition of Priority Freight Lines and the opening of a service center in Long Beach, California. As a result, we operated 188 service centers at the end of the quarter, up from 182 at the end of 2006, and we launched full-state coverage in Washington, our 38th state with this acquisition. We have adjusted our capital expenditure budget for 2007 to approximately $200 million from approximately $245 million primarily due to budgeted real estate expenditures that will likely be incurred in 2008 depending upon the availability of real estate and the completion of projects under construction."

Based on the Company's results for the second quarter and first half of 2007, and its outlook for the remainder of 2007, Old Dominion today affirmed its established guidance for earnings per diluted share for 2007 in a range of $2.00 to $2.05. This guidance, when originally established in January 2007, included an estimate for the non-recurring customer pricing issue that was resolved and recorded in the second quarter. In addition, the Company today established its guidance for earnings per diluted share for the third quarter of 2007 in a range of $0.53 to $0.56.

Mr. Congdon added, "We remain cautious in our outlook for the second half of 2007. Although volume to date supports our expectation that our tonnage will continue to improve in the second half of the year, the market continues to be highly competitive.

"In this environment, Old Dominion will focus on the consistent execution of its long-term growth strategies, as it does throughout the economic cycle. We will work to increase our market share within our existing service center network to drive operating leverage. We will strive to expand our relationships with existing customers and enter new relationships through innovative and comprehensive products and high quality customer service, supported by our continuing investment in leading-edge technology. We expect to enhance our ability to increase freight density within our network by continuing our steady geographic expansion, and we will evaluate additional opportunities to achieve our targets through selective acquisitions. In addition to a strong, differentiated market position, we believe that Old Dominion has the resources to implement these proven strategies and to drive further profitable growth and increased shareholder value."

Old Dominion will hold a conference call to discuss this release today at 11:00 a.m. Eastern Daylight Time. Investors will have the opportunity to listen to the conference call live over the Internet by going to www.odfl.com or by going to www.InvestorCalendar.com. Please log on at least 15 minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available at these websites shortly after the call through August 26, 2007. A telephonic replay will also be available through August 2, 2007, at (719) 457-0820, Confirmation Number 8724709.

Forward-looking statements in this news release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties that could cause actual events and results to be materially different from those expressed or implied herein, including, but not limited to, the following: (1) the Company's ability to complete and successfully integrate acquired businesses and assets and produce the anticipated benefits from such transactions; (2) the competitive environment with respect to industry capacity and pricing, including with respect to fuel surcharges; (3) the negative impact of any unionization of the Company's employees; (4) the challenges associated with executing the Company's growth strategy; (5) various economic factors such as economic recessions and downturns in customers' business cycles and shipping requirements; (6) the availability and cost of fuel; (7) difficulty in attracting or retaining qualified drivers; (8) the Company's exposure to claims related to cargo loss and damage, property damage, personal injury, workers' compensation, long-term disability and group health and the cost of insurance coverage above retention levels; (9) the Company's significant ongoing cash requirements; (10) the availability and cost of new equipment; (11) the costs of compliance with, or liability for, violation of existing or future governmental regulation; (12) seasonal trends in the industry, including the possibility of harsh weather conditions; (13) the Company's dependence on key employees; (14) changes in the Company's goals and strategies, which are subject to change at any time at the discretion of the Company; and (15) other risks and uncertainties indicated from time to time in the Company's filings with the Securities and Exchange Commission.

Old Dominion Freight Line, Inc. is a less-than-truckload multi-regional motor carrier providing one-to-five day service among six regions in the United States and next-day and second-day service within these regions. Through its four product groups, OD-Domestic, OD-Expedited, OD-Global and OD- Technology, the Company offers an array of innovative products and services that provide direct service to 47 states within the Southeast, Gulf Coast, Northeast, Midwest, Central and West regions of the country, including 38 states within which it provides full-state coverage. In addition, through marketing and carrier relationships, Old Dominion provides service to and from the remaining states as well as international services around the globe.

                   OLD DOMINION FREIGHT LINE, INC.
                         Financial Highlights
               (In thousands, except per share amounts)

                           Three Months         Six Months Ended
                               Ended
                             June 30,       %       June 30,       %
                         -----------------      -----------------
                           2007     2006   Chg.   2007     2006   Chg.
                          -------  ------- ----  -------  ------- ----
Revenue from operations  $359,617 $330,812 8.7% $679,559 $622,443 9.2%
Operating income         $ 40,650 $ 38,602 5.3% $ 65,694 $ 62,184 5.6%
Operating ratio             88.7%    88.3%         90.3%    90.0%
Net income               $ 22,539 $ 21,605 4.3% $ 36,110 $ 34,625 4.3%
Earnings per share:
    Basic and diluted    $   0.60 $   0.58 3.4% $   0.97 $   0.93 4.3%
Weighted average shares
 outstanding:
Basic and diluted          37,285   37,285 0.0%   37,285   37,285 0.0%
OLD DOMINION FREIGHT LINE, INC.


Statements of Operations
----------------------------------------------------------------------
(In thousands, except per share amounts)

                                          Second Quarter
                             ----------------------------------------

                                   2007            2006      % Chg.
                             --------------- --------------- --------

Revenue                      $359,617 100.0% $330,812 100.0%    8.7%

Operating expenses:
Salaries, wages & benefits    187,005  52.0%  170,762  51.6%    9.5%
Operating supplies &
 expenses                      58,414  16.2%   52,929  16.0%   10.4%
General supplies & expenses    10,604   2.9%    9,790   3.0%    8.3%
Operating taxes & licenses     12,562   3.5%   11,631   3.5%    8.0%
Insurance & claims              9,002   2.5%    8,666   2.6%    3.9%
Communications & utilities      3,447   1.0%    3,683   1.1%   (6.4%)
Depreciation & amortization    20,062   5.6%   16,756   5.1%   19.7%
Purchased transportation       12,089   3.4%   12,605   3.8%   (4.1%)
Building and office
 equipment rents                3,017   0.8%    2,899   0.9%    4.1%
Miscellaneous expenses, net     2,765   0.8%    2,489   0.7%   11.1%

   Total operating expenses   318,967  88.7%  292,210  88.3%    9.2%

Operating income               40,650  11.3%   38,602  11.7%    5.3%

Other deductions:
Interest expense, net           3,404   0.9%    2,417   0.7%   40.8%
Other (income) expense, net        (9)  0.0%      176   0.1% (105.1%)

Income before income taxes     37,255  10.4%   36,009  10.9%    3.5%

Provision for income taxes     14,716   4.1%   14,404   4.4%    2.2%

Net income                   $ 22,539   6.3% $ 21,605   6.5%    4.3%
                             =========       ========

Earnings per share:

Basic and Diluted            $   0.60        $   0.58           3.4%

Weighted average outstanding
 shares:
Basic and Diluted              37,285          37,285           0.0%

                                            Year To Date
                               ---------------------------------------

                                     2007            2006      % Chg.
                               --------------- --------------- -------

Revenue                        $679,559 100.0% $622,443 100.0%   9.2%

Operating expenses:
Salaries, wages & benefits      363,260  53.4%  330,820  53.2%   9.8%
Operating supplies & expenses   107,904  15.9%   98,483  15.8%   9.6%
General supplies & expenses      19,903   2.9%   19,100   3.1%   4.2%
Operating taxes & licenses       24,783   3.6%   22,666   3.6%   9.3%
Insurance & claims               20,114   3.0%   17,150   2.8%  17.3%
Communications & utilities        7,329   1.1%    7,485   1.2%  (2.1%)
Depreciation & amortization      38,494   5.7%   32,293   5.2%  19.2%
Purchased transportation         21,881   3.2%   22,611   3.6%  (3.2%)
Building and office equipment
 rents                            5,734   0.8%    5,669   0.9%   1.1%
Miscellaneous expenses, net       4,463   0.7%    3,982   0.6%  12.1%

   Total operating expenses     613,865  90.3%  560,259  90.0%   9.6%

Operating income                 65,694   9.7%   62,184  10.0%   5.6%

Other deductions:
Interest expense, net             6,427   1.0%    4,028   0.6%  59.6%
Other (income) expense, net         242   0.0%      447   0.1% (45.9%)

Income before income taxes       59,025   8.7%   57,709   9.3%   2.3%

Provision for income taxes       22,915   3.4%   23,084   3.7%  (0.7%)

Net income                     $ 36,110   5.3% $ 34,625   5.6%   4.3%
                               ========        ========

Earnings per share:

Basic and Diluted              $   0.97        $   0.93          4.3%

Weighted average outstanding
 shares:
Basic and Diluted                37,285          37,285          0.0%
OLD DOMINION FREIGHT LINE, INC.

                      Second Quarter              Year to Date
                 ------------------------- ---------------------------

Operating                             %                           %
 Statistics        2007      2006     Chg.   2007       2006      Chg.
------------------------------------------ ---------------------------

Operating ratio     88.7%     88.3%   0.5%     90.3%      90.0%   0.3%
Intercity miles
 (a)              81,153    75,066    8.1%  156,131    143,696    8.7%
Total tons (a)     1,341     1,249    7.4%    2,583      2,406    7.4%
Total shipments
 (a)               1,723     1,644    4.8%    3,343      3,188    4.9%
Revenue per
 intercity mile  $  4.43   $  4.41    0.5% $   4.35   $   4.33    0.5%
Rev/cwt (b)      $ 13.44   $ 13.29    1.1% $  13.20   $  13.04    1.2%
Rev/cwt less FSC
 (b)             $ 11.81   $ 11.61    1.7% $  11.69   $  11.51    1.6%
Rev/shp (b)      $209.21   $201.88    3.6% $ 204.04   $ 196.76    3.7%
Rev/shp less FSC
 (b)             $183.89   $176.42    4.2% $ 180.70   $ 173.64    4.1%
Weight per
 shipment          1,557     1,519    2.5%    1,546      1,509    2.5%
Average length of
 haul                934       932    0.2%      939        934    0.5%

(a) - In thousands
(b) - For statistical purposes only, revenue does not include
 adjustments for undelivered freight required for financial statement
 purposes in accordance with the Company's revenue recognition policy.
                                                June 30,  December 31,
Balance Sheets                                    2007          2006
----------------------------------------------------------------------
 (In thousands)

Current assets                                  $211,304      $256,367
Net property and equipment                       708,279       607,588
Other assets                                      37,121        28,238
                                                --------  ------------
Total assets                                    $956,704      $892,193
                                                ========  ============

Current maturities of long-term debt            $ 12,348      $ 12,697
Other current liabilities                        134,934       108,849
                                                --------  ------------
Total current liabilities                        147,282       121,546
Long-term debt                                   255,022       261,885
Other non-current liabilities                    100,670        91,142
                                                --------  ------------
Total liabilities                                502,974       474,573
Shareholders' equity                             453,730       417,620
                                                --------  ------------
Total liabilities & shareholders' equity        $956,704      $892,193
                                                ========  ============


Note: Financial statements and operating statistics are unaudited.

Source: Old Dominion Freight Line, Inc.