Pinnacle Transportation Inc. Announces Acquisition of Southern California Dispatch Terminal MESA, Ariz., May 4 /PRNewswire-FirstCall/ -- Pinnacle Transportation Inc. of Mesa, Arizona announced today that as of April 24, 2004, its newly acquired Dispatch Terminal in Southern California is fully operating and functioning. Based on historical financial statements the Company believes that this acquisition will add revenues of $14M on an annualized basis to its existing business. In 2003, its first year as a public company, Pinnacle enjoyed sales of $8M. The Company believes that with organic growth and this additional Dispatch Terminal it will approach $25M in sales for 2004. This new Dispatch Terminal will remain under the capable management of Roger Welk, Western Division Operations Manager. Mr. Welk was a principal of the acquired business and is a 30-year veteran of the Heavy Haul Transport Industry. ABOUT PINNACLE TRANSPORTATION INC. Pinnacle is a four-year-old company based in Mesa, Arizona that specializes in transporting Manufactured Homes, Modular Homes, Schools and Offices. Pinnacle, with, the addition of its new Dispatch Terminal in Southern California, is the largest Heavy Haul Transporter in the Western United States. This newest addition brings the total of its Terminals in the West to 10. Pinnacle was incorporated in 2000 by Shawn Kling, a seasoned veteran of the Heavy Haul Transport Industry, to take advantage of what he saw as the eventual consolidation opportunities that would arise in the new millennium. The Industry unlike the general transport or LTL has many barriers to entry. It is highly specialized and demands experienced and knowledgeable skilled drivers. Special licensing and permits are required. Expensive insurance coverage and extensive routing knowledge is critical for successful operations. In addition some shipments require special equipment such as modular trailers to meet the customer's needs. There are few companies that can meet these stringent requirements. Pinnacle ships for companies in the Manufactured Housing Industry. The Manufacturers have 275 factories throughout the Nation producing units that have an economic impact in excess of $20 Billion. Source -- Manufactured Housing Institute 2003. Manufacturers have reported a sales increase in Modular Homes, they are permanent structures sited on conventional foundations. This increase has been helped by the recent lending announcements of Freddie Mac and Fannie Mae for loans specifically designed for Manufactured and Modular homes. Warren Buffet recently gave a ringing endorsement of the industry's long-term viability by recently purchasing two of the industry leaders, Oakwood Homes and Clayton Homes for his Berkshire Hathaway portfolio. Pinnacle currently ships for six of the industry's top ten companies and has the specialized Modular Trailers to service this growing market segment. Disclaimer Except for historical matters contained herein, the matters discussed in this press release are forward looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that these forward-looking statements reflect numerous assumptions and involve risk and uncertainties that may affect Pinnacle Transportation Inc. and its subsidiary's business and prospects, and cause results to differ materially from these forward-looking statements. Among the factors that could cause actual results to differ are operating history; competition; low barriers to entry; reliance on strategic relationships; inability to complete transactions on favorable terms; and those risks that will be discussed in the Company's upcoming filings with the SEC. DATASOURCE: Pinnacle Transporatation Inc. CONTACT: R. Chandler of Pinnacle Transportation Inc., +1-480-833-4000

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