Vitran expects the acquisition to be immediately accretive to its earnings per share. The transaction, which is subject to normal closing conditions, is expected to be completed during Vitran's third quarter. Financial terms of the agreement were not disclosed. For the first six months of 1998, pro forma for the acquisition, Vitran's:

• Revenues would have increased approximately 19%, from CDN $191 million to CDN $227 million
• EBITDA would have risen approximately 45%, from CDN $12.2 million to CDN $17.7 million
• Consolidated operating ratio would have been enhanced.

Quast is a 60 year-old, family-run carrier with 680 associates. Quast provides guaranteed on-time service to over 10,000 customers in the North/Central region of the United States, including Minnesosconsin, Illinois, Missouri, Iowa, Kansas, Nebraska, South Dakota, and North Dakota, complementing the Overland service territory.

Commenting on the acquisition, Rick Gaetz, President & Chief Operating Officer, Vitran Distribution Systems, stated, "Quast represents an excellent strategic fit with our existing U.S. operations and territory. Similar to Overland, Quast has built an enviable reputation for providing on-time delivery and a high level of service for its customers. We have a huge degree of confidence in Quast and its skilled and dedicated employees, having utilized them for deliveries to areas we do not presently serve. We enthusiastically welcome the entire Quast team and anticipate a smooth and swift consolidation of our respective operations."

"The Quast purchase underscores Vitran's commitment to expanding our U.S. presence and operations," said Richard D. McGraw, President and Chief Executive Officer, Vitran Corporation, Inc. "As previously stated, our long-term goal is to assemble a comprehensive, full-service North American transportation network to better serve our growing customer base.

"Quast represents our second major regional U.S. LTL carrier acquisition, and importantly, adheres to all of our list of strict acquisition criteria. Our expansion into the United States commenced following the completion of the NAFTA treaty, with our successful acquisition of the Overland Transportation System in 1995. The Quast purchase should yield improved operating efficiencies and synergies and is expected to be immediately accretive to our financial results. The acquisition of Quast will increase revenue throughout the Vitran system and raise U.S. based revenues to approximatelly 70% of consolidated revenue."

Mr. McGraw continued, "To complete our North American transportation network, we are actively pursuing additional regional LTL acquisitions in geographic territories Vitran does not presently serve. We hope to add new LTL carriers to the Vitran Group of companies in the near future, in addition to extending our record of achieving double-digit internal growth." Vitran Corporation Inc. is a North American group of transportation companies offering less-than-truckload, truckload, intermodal marketing, truck brokerage, and logistics.

This news announcement contain 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 filings with the Securities and Exchange Commission. Included among these risks and uncertainties are the possibility that the Quast acquisition will not be consummated, and that the operations of Vitran and Quast are not successfully consolidated, and that the combination does not generate the anticipated financial results. Other risks and uncertainties include the future performance of the economy, competitive and pricing pressures, fuel costs, and other factors impacting the transportation industry.