YRC Worldwide Announces Plans to Commence Tender Offer for Senior Notes

YRC Worldwide Inc. announced further plans to reduce debt and improve earnings by commencing a tender offer to purchase its 5% and 3.375% contingent convertible senior notes due 2023 and its 8.5% senior notes due 2010 for up to $100 million in cash. The company had previously drawn on its senior credit facility to fund the purchases.

Based on the set offer prices and assuming sufficient participation, the company expects to purchase at least $230 million principal amount of notes resulting in a total debt reduction of at least $130 million. To the extent the principal amount of the purchased notes is greater than the amount paid, the difference will be recognized as a gain on extinguishment of debt and included in the company’s earnings before interest, taxes, depreciation and amortization (EBITDA) under the debt-to-EBITDA leverage ratio in the company’s credit agreement.

“This is another proactive measure that we are taking to reduce our debt and improve our earnings,” stated Bill Zollars, Chairman, President and CEO of YRC Worldwide. “Given the deteriorating economic environment, we have implemented a comprehensive program to improve our competitive position, increase our profitability and enhance our financial condition.”

Other components of the company’s plan include the continued successful integration of Yellow Transportation and Roadway, sales of excess real estate, sales and leasebacks of real estate and significant cost reduction actions.

The tender offer is expected to officially launch on Tuesday, November 25, 2008, and will include further details relevant to the note holders.

This news release is for informational purposes only and is not an offer to buy, or the solicitation of an offer to sell, any of the notes. The full details of the tender offer for the notes, including complete instructions on how to tender notes, will be included in a Schedule TO (including the Offer to Purchase and the accompanying Letter of Transmittal) that is being filed by the company tomorrow with the Securities and Exchange Commission (the “Commission”). Note holders are strongly encouraged to read carefully the Offer to Purchase, the accompanying Letter of Transmittal and any other related materials, including materials filed with the Commission, because they will contain important information. Note holders may obtain free copies of these materials, including the Offer to Purchase and the accompanying Letter of Transmittal, once they are filed with the Commission at the Commission’s website at www.sec.gov.