• Vitran Corporation Inc. Balance Sheet
• Vitran Corporation Inc. Statements Of Income

- Operating Income Rises 125%; Net Income Increases to $1.9 Million, or $0.20 Per Shares-
- Declares Semi-Annual Dividend-

TORONTO, ONTARIO--(October 23, 1997) -- Vitran Corporation Inc. (Nasdaq: VVN, TSE: ETNA), a multi-service North American transportation and logistics firm focusing on Less-than-Truckload (LTL), today announced financial results for the third quarter and nine months ended September 30, 1997 (all figures reported in Canadian dollars). Vitran also announced that its Board of Directors had approved the semi-annual dividend of $0.035 per share payable on December 31, 1997 to shareholders of record on December 15, 1997.

Revenues for the three months ended September 30, 1997 rose 19% to $94,215,000, compared to $79,302,000 in the 1996 third quarter, and operating income increased 125%, compared to the year-earlier period. Net income during the 1997 third quarter was up 266% to $1,898,000, or $0.20 per share, compared with net income of $518,000, or $0.06 per share in the year-ago quarter. Per share results are based on 9,416,592 and 9,394,947 weighted average shares outstanding during the 1997 and 1996 three-month periods, respectively.

Revenues for the nine-month period ended September 30, 1997 rose 17% to $263,736,000 compared to $225,698,000 in the 1996 period, and operating income for the first nine months of 1997 increased five-fold, compared to the year-earlier period. Net income for the nine-month period was $4,220,000, or $0.45 per share, compared to a net loss of $251,000, or $0.03 per share in the year-ago period. Per share results are based on 9,413,559 and 9,375,085 weighted average shares outstanding during the 1997 and 1996  nine-month periods, respectively.

Commenting on the earnings performance, President and Chief Executive Officer, Richard D. McGraw, stated, "The strong quarterly and nine-month earnings results reflect Vitran's ability to grow internally, control expenses and improve productivity. Increased demand for freight services, tightening of industry capacity and stable pricing have combined to make this a favorable industry environment, particularly in the U.S. On a consolidated basis, our operating ratio (total operating expenses inclusive of depreciation, not including interest and taxes, as a percentage of revenues) during the third quarter improved to 95.4%, compared to 97.6% a year ago; and in the LTL division, our operating ratio improved to 93.9%, versus 95.4% during the comparable 1996 period. Looking forward, Vitran is well positioned to generate positive quarterly comparisons as we grow both internally and through acquisitions."

Vitran Corporation Inc. is a North American transportation firm headquartered in Toronto with Less-Than-Truckload (LTL), Truckload (TL), Intermodal Marketing (IMC), Truck Brokerage and Logistics Services operations across Canada and the United States.

This news announcement contains certain forward-looking information that is subject to certain risks and uncertainties as indicated from time to time in the Company' s 20-F and other filing with the Securities and Exchange Commission. Included among these risks and uncertainties are the future performance of the economy, competitive and pricing pressures, fuel costs and other factors impacting the transportation industry.