929452--3/1/2007--KNIGHT_TRANSPORTATION

related topics

{cost, regulation, environmental}

{condition, economic, financial}

{personnel, key, retain}

{acquisition, growth, future}

{gas, price, oil}

{system, service, information}

{competitive, industry, competition}

{interest, director, officer}

{loss, insurance, financial}

{customer, product, revenue}

business is subject to general economic and business factors that are largely out of our control. growth may not continue at historical rates If the growth in our regional operations slows or stagnates, if we are unable to commit sufficient resources to our regional operations, or if we were to expand into a market with insufficient economic activity or human resources, our results of operations could be adversely affected. Ongoing insurance and claims expenses could significantly reduce our earnings Increased prices and reduced efficiency relating to new revenue equipment may adversely affect our earnings and cash flows. If fuel prices increase significantly, our results of operations could be adversely affected. Difficulty in driver and independent contractor recruitment and retention may have a materially adverse effect on our business. We operate in a highly regulated industry, and increased costs of compliance with, or liability for violation of, existing or future regulations could have a materially adverse effect on our business. Our operations are subject to various environmental laws and regulations, the violation of which could result in substantial fines or penalties. We may not make acquisitions in the future, or if we do, we may not be successful in integrating the acquired company, either of which could have a materially adverse effect on our business. As we continue to expand into new regions, we may experience greater operating variances due to the seasonal pattern of the transportation industry, which may have a materially adverse effect on our operations. If we are unable to retain our key employees or find, develop, and retain service center managers, our business, financial condition, and results of operations could be adversely affected. We are highly dependent on a few major customers, the loss of one or more of which could have a materially adverse effect on our business. If our investment in Transportation Resource Partners ("TRP") is not successful, we may be forced to further write off part or all of our investment, which could have a materially adverse effect on our operating results. We are dependent on computer and communications systems, and a systems failure could cause a significant disruption to our business.

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929452--3/1/2007--KNIGHT_TRANSPORTATION_INC