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Waivers Received Until Bank Amendment Concludes in Early FebruaryOVERLAND PARK, Kan., Jan. 16 /PRNewswire-FirstCall/ — YRC Worldwide Inc.(Nasdaq: YRCW) today stated that it has completed an important step towardfinalizing an amendment with its banking group by obtaining waivers under itscredit facilities.The company previously announced discussions with itsbanking group to modify certain terms of its credit facilities, includingchanges to its leverage ratio, in addition to early renewal of itsasset-backed securitization (“ABS”) facility.The company’s banking groupprovided waivers for the credit facilities until mid-February 2009 to allowsufficient time to amend the facilities and renew the ABS without a delay inreporting the company’s 2008 results scheduled for after market on January 29,2009.Given that YRC canceled its tender offer in late December and retainedthe $250 million of cash drawn on the revolver in October 2008, the companyexpects its total debt to exceed 3.5 times (a limit established in its creditfacilities) its trailing twelve months earnings before interest, taxes,depreciation and amortization as of December 31, 2008.”This is another indication that our banking group supports the strategicactions we are taking and is working with us to provide the flexibility weneed during this economic recession,” stated Bill Zollars, Chairman, Presidentand CEO of YRC Worldwide.”We are pleased with the discussions so far andremain confident that we can work out a mutual agreement that providesflexibility in our leverage ratio while improving our liquidity position.”At December 31, 2008 the company had around $300 million of cash andexpects to generate additional cash from sale and leaseback transactions,including its pending transaction for $150 million, and proceeds from sales ofexcess facilities, while reducing its 2009 equipment purchases due to theintegration of its national companies.The company also recently announcedratification of a ten percent reduction in union wages that is targeted toresult in annual cost savings of $220 to $250 million in addition to the $75to $85 million in savings from non-union compensation reductions that wereeffective January 1, 2009.When combining these cost savings with the plannedrun rate of $200 million of operating income from the integration of theYellow Transportation and Roadway networks, the company expects to improve itsoperating performance by around $500 million going into 2010 Memphis Grizzlies tickets .”We continue to take the appropriate steps to improve our financialposition and enhance our service to our customers,” said Zollars.”Theoperating environment remains challenging but with the measures we are taking,including removing nearly half a billion of cost, we are confident that we cancome out of the recession as a stronger organization.”Certain statements in this news release include forward-looking statementswithin the meaning of Section 27A of the Securities Act of 1933, as amended,and Section 21E of the Securities Exchange Act of 1934, as amended (each a”forward-looking statement”).Forward-looking statements include thosepreceded by, followed by or include the words “expects,” “believes,”"targeted,” “planned,” or similar expressions.The company’s expectations regarding a bank amendment and the date of thebank amendment are only its expectations regarding this matter.Whether thecompany and its banks actually enter into an amendment is entirely dependenton the outcome of their discussions and approval of a majority in interest ofthe participating banks.The company’s expectations regarding its continued compliance with thecovenants in its credit facilities are only its expectations regarding thismatter.Actual compliance will depend upon the company reaching an acceptableamendment to its credit facilities and its compliance with the ultimatelynegotiated terms of that amendment.Whether the company can comply with thoseterms may be determined by the company’s operating results or its ability tofurther reduce its debt through asset sales, capital market transactions orother means.The company’s expectations regarding having sufficient liquidity are onlyits expectations regarding this matter.Actual liquidity levels will dependupon the company’s operating results, its access to credit facilities orcredit markets, cash received as a result of asset dispositions or capitalmarket transactions, the company’s cash needs to fund operations, any cashfunding needs for bank waivers and amendments and related restructuringactivities and any collateral requests from third parties such as insurers,state workers compensation departments and vendors.The company’s actual future results and debt levels could differmaterially from those projected because of a number of factors, including(among others) inflation, inclement weather, price and availability of fuel,sudden changes in the cost of fuel or the index upon which the company basesits fuel surcharge, competitor pricing activity, expense volatility, including(without limitation) expense volatility due to changes in rail service orpricing for rail service, ability to capture cost reductions, including(without limitation) those cost reduction opportunities arising from thecombination of the sales, operations and networks of Yellow Transportation andRoadway, changes in equity and debt markets, a downturn in general or regionaleconomic activity, effects of a terrorist attack, labor relations, including(without limitation), the impact of work rules, work stoppages, strikes orother disruptions, any obligations to multi-employer health, welfare andpension plans, wage requirements and employee satisfaction, and the riskfactors that are from time to time included in the company’s reports filedwith the Securities and Exchange Commission, including the company’s AnnualReport on Form 10-K for the year ended December 31, 2007.The company’s expectation regarding the close of its $150 million saleleaseback transaction is only its expectation regarding this matter.Actualclosing is subject to the satisfaction or waiver of conditions to closingcontained in the agreement for the transaction, including (without limitation)normal and customary due diligence and related conditions, including thepurchaser’s right to terminate the transaction in its sole discretion duringan inspection period.The company’s estimates regarding the savings from wage and benefitreductions from union and non-union employees are only its estimates regardingthese amounts.Actual savings would be determined by actual levels ofemployment and the number of union employees who participate in bargainingunits that have ratified the union wage reductions.The company’s expectations regarding the timing of, and results from, theconsolidation or integration of Yellow Transportation and Roadway facilitiesare only its expectations regarding this matter.Actual timing and resultscould differ depending on whether the company’s affected unionized employeesapprove the changes, the readiness of employees to utilize new combinedprocesses, the effectiveness of deploying existing technology necessary tofacilitate the combination of processes, the level of pricing achieved forservice provided through the combined network, actual freight volumes that thecombined network delivers, fuel prices and the other factors that affectbusiness results generally listed above.The company’s confidence that it “can come out of the recession as astronger organization” is only its expectation regarding this matter.Actualresults will be determined by all of the factors listed above.YRC Worldwide Inc., a Fortune 500 company and one of the largesttransportation service providers in the world, is the holding company for aportfolio of successful brands including Yellow Transportation, Roadway,Reimer Express, YRC Logistics, New Penn, Holland, Reddaway, and Glen Moore.The enterprise provides global transportation services, transportationmanagement solutions and logistics management. The portfolio of brandsrepresents a comprehensive array of services for the shipment of industrial,commercial and retail goods domestically and internationally.Headquarteredin Overland Park, Kansas, YRC Worldwide employs approximately 58,000 people.SOURCEYRC Worldwide Inc.Investors: Sheila Taylor, YRC Worldwide Inc., +1-913-696-6108,; Media: Suzanne Dawson, Linden Alschuler & Kaplan,+1-212-329-1420, .
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