WEB ADDRESS: www.Tand.com

ICC NUMBER: MC-156133

FEDERAL ID NUMBER: 35-1491990

EXECUTIVE COMMITTEE:

• Walter G. Bay, President, CEO, COB
• Jeffery T. Gross, Executive Vice President, Corporate Development
• David Bay, Vice President, Human Resources & Administrative Services
• Terry Killingbeck, Vice President, Marketing & Logistics

ESTABLISHMENT: Tandem and predecessor companies have provided for-hire freight services throughout the U.S. since 1945.

FINANCIAL AND OPERATING CONDITION: The financial condition of Tandem Transport Corp. continues to be very strong. Tandem revenues grew from less than $5 million in 1985 to over $50 million in Fiscal Year 2006.

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TERMINAL LOCATIONS & CONTACTS

Corporate Headquarters (Marketing/Operations)
Michigan City, IN

Sales

Corporate Dispatch

Operations / Safety

National Sales/Accounting
St. Louis, MI

Regional Sales/Dispatch
Chattanooga, TN

Regional Sales/Dispatch/Maintenance
Gaylord, MI

Regional Sales/Dispatch
Vanlue, OH

Regional Sales/Dispatch
Savannah, GA

Independent Contractor Division
Columbus, OH

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SALES AND MARKETING: Tandem has a number of features that make it the number one choice in flatbed carriers:

• Company owned fleet of over 296 tractor/trailer units all with standard height 48' predominately East aluminum, air-ride flatbed trailers and approximately 60 dedicated Independent Contractors and Exclusive Fleet Operatorsmaking our total fleet size over 350 units.
• Full lumber tarps, steel tarps, straps, chains, coil racks and pads. We can haul nearly all types of building material, steel, or machinery.
• Dedicated equipment to meet your short haul needs. Tandem can assign dedicated drivers that will serve you daily.
• Spread-Axle trailers providing Interstate and Intrastate service with up to 51,000 pounds of payload capacity.
• Multi-Axle trailers providing Intrastate Michigan service up to 104,000 pounds of payload capacity.
• Doubles (Trains) providing Intrastate Michigan service with up to 104,000 pounds of payload capacity with 57' of deck space.
• Late modeled tractors and trailers Tractors are largely 2004 - 2007 and trailers 2001 - 2007.
• 48 state authority including Ontario Canada for tandem axle equipment. Also, intrastate authority for Georgia, Illinois, Indiana, Kentucky, Michigan, Missouri, Ohio, Tennessee, and Texas.
• Flexible rates that can be per hundred weight, per mile, point-to-point, or customized to shippers needs.
• EDI Capability for automatic payment and freight tender.
• Customized reporting available to show trends, charts, maps, etc. to meet your analytical needs.

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SCOPE OF OPERATING AUTHORITY

• Tandem operates with forty-eight (48) state general commodities, common and contract authorities, plus Intrastate authority for GA, IL, IN, KY, MI, MO, OH, TN, TX
• Heaviest Traffic Lanes are on and East of a line from the Western border of MN to Houston, TX, with concentration of services in IA (East), IL, IN, MI, OH, TN, PA (West), and WI. A newly targeted long haul movement has begun to Eastern TX and other locations. Additional areas of continuous coverage are being established throughout an area in and East of the Mississippi with our Tandem East fleet agency, independent contractor concept.

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EQUIPMENT - SIZE OF FLEET

Company Owned: Type and Size of Fleet ( Current)

Tractors:

• 231 Freightliner Conventionals
• 65 Volvo Conventionals

Trailers:

• 310 East 48' Aluminum AIR RIDE – Tandem Axles
• 10 Reitnouer 48' Aluminum AIR RIDE – Tandem Axles
• 11 Fontaine 48' Aluminum AIR RIDE – Tandem Axles
• 4 East 48' Aluminum AIR RIDE – Quad Axles
• 10 East 48' Aluminum AIR RIDE - 6 Axles
• 1 Thru-way 50' Steel - 8 Axle

Condition and Year: Tandem follows a strict maintenance schedule for all equipment to insure safe and efficient operation. All equipment is in EXCELLENT condition. A snapshot of our late-modeled equipment is:

Tractors:

• 105 2007 models
• 100 2006 models
• 55 2005 models
• 36 2004 models

Trailers:

• 100 2007 models
• 36 2006 models
• 10 2003 models
• 10 2002 models
• 56 2001 models
• 116 2000 models
• 5 1997 models
• 6 1995 models
• 6 1994 models
• 1 1993 models

Our fleet is continuously cycled, utilizing long-term contractual agreements with quality vendors.

Leased: Independent Contractors

Type and size of fleet

• 60 tractor-trailer combinations.
• All equipment is well maintained. Trailers comprised of tandem, spread, and multi-axle trailers.
• Independent Contractors are thoroughly screened to meet our qualifications. Many of these drivers have been with Tandem for several years.

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PERSONNEL

• Company Drivers - 252
• Independent Contractors - 32
• Broker Drivers - 19
• Accounting / Finance - 10
• Safety/Compliance/Recruiting/Driver Personnel - 13
• Operations - 22
• Sales/Traffic - 25
• Total - 373 employees

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SERVICE CONSIDERATIONS

• Communications, Tracing and Expediting: Scheduled loading and unloading provided as well as customer notification upon request. All drivers to contact central dispatch by 9:30 AM CST daily. Toll-free telephone numbers provided for customer convenience.
• Central Dispatch and Coordination: All freight is monitored by Central Dispatch in Michigan City, IN. However, each terminal coordinates planning and dispatch for their geographic area. Most loading schedules are arranged one day prior to pick up; however, same-day pick up is possible.
• Control of Pick Up and Delivery: No loads are accepted without drivers available for pick up. Loads accepted within a 500 mile radius are scheduled for delivery the next working day (special deliveries can be arranged). All drivers are required to contact dispatch when empty.
• Customer Service: Tight control of company drivers and independent contractors allows Tandem to react quickly to special customer situations. Stop off and reconsignment service is provided. Safe, late model equipment enhances our shipper's product to consignee. Excellent securement and protective equipment are provided. Our drivers are well screened, qualified, and well paid. They receive many incentives to further insure quality customer service (ie. safe driving, fuel, highest revenue, etc.)
• Over, Short, and Damaged Claims: Tandem is very serious about meeting customer requirements as well as DOT regulations. Our last DOT Safety Compliance Audit (December 2000) revealed that Tandem Transport is in FULL compliance with all federal regulatory and safety requirements. Due to the scrutiny we maintain, our customer satisfaction is high and claims negligible. This is reflected in our excellent insurance rating. Should you have any questions or concerns, please feel free to contact Norma Christine, Safety Manager at 800-348-8532(ext. 8146) or Leslye Kreighbaum, Compliance Manager(ext. 8119).
• Billing and Payment: Computerized billing is forwarded to our customers upon Tandem's receipt of driver's completed paperwork. Payment requested within seven (7) days of receipt of billing.
  
  We are also EDI capable and have several accounts on an automatic payment program. Should you have interest in automatic payments or any EDI issues please contact Scott Nobles, Systems Administrator, at 800-348-8532 (ext. 8157), and he will advise you of our systems and their capability.
• Information Systems and Reports: Tandem's finance and operations are fully integrated in our computer system. Should you have need of activity or trend reports, do not hesitate to ask. We can prepare maps, graphs, charts, etc.. tailored to your analytical needs.

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LIABILITY INSURANCE

Tandem is covered by the following insurance:
Great West Casualty Company - Omaha, NE
Excellent safety and cargo liability ratio

INSURANCE AGENT

Tandem's insurance agent is:

Motor-Ways, Incorporated
P O Box 42308
Urbandale, IA 50322
ATTENTION: Mr. Pat Storey, President
(800)642-4163

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