WEB ADDRESS: www.Tand.com

ICC NUMBER: MC-156133

FEDERAL ID NUMBER: 35-1491990

DOT NUMBER: 198033

EXECUTIVE COMMITTEE:

• Walter G. Bay, COB, CEO
• Jeffery T. Gross, President, COO
• David Bay, Vice President, Human Resources & Administrative Services
• Terry Killingbeck, Vice President, Marketing & Logistics
• Aaron Kenyon, Vice President, Finance & Legal Counsel

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 nearly $60 million in Fiscal Year 2008.

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TERMINAL LOCATIONS & CONTACTS

Corporate Headquarters (Marketing/Operations)
Michigan City, IN

Sales

Corporate Dispatch

Maintenance / Safety

Recruiting

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

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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 268 tractors all with standard length 48' predominately East aluminum, air-ride flatbed trailers, 7 Independent Contactors and 30 Exclusive Fleet Owner/Brokers making our total fleet size of 305 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 (and Northern Ohio and Nothern Indiana) service with up to 104,000 pounds of payload capacity with 56' of deck space.
• Late modeled tractors and trailers. Tractors are mostly 2006 - 2010 and trailers 2006 - 2009.
• 48 state authority including Ontario Canada for tandem axle equipment. Also, intrastate authority for Georgia, Illinois, Indiana, Michigan, Tennessee, Kentucky, Ohio, Texas, and Missouri.
• Flexible rates that can be per hundred weight, per mile, point-to-point, or customized to meet 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, OH, TX, MO, TN
• Heaviest Traffic Lanes are East of the MS River, with concentration of services in IL, IN, MI, OH, PA (West), and WI. We also have a very strong presence in the South East with our terminals in Savannah, GA and Chattanooga, TN, with concentration in AL, GA, NC, SC, TN.

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EQUIPMENT - SIZE OF FLEET

Company Owned: Type and Size of Fleet ( Current)

Tractors:

• 198 - Freightliner Conventionals
• 70 - Volvo Conventionals

Trailers:

• 220 - East 48' Aluminum AIR RIDE – Tandem Axles
• 45 - Reitnouer 48' Aluminum AIR RIDE – Tandem Axles
• 10 - Fontaine 48' Aluminum AIR RIDE – Tri Axles
• 10 - East 48' Aluminum AIR RIDE – Tri Axles
• 5 - Reitnouer 48' Aluminum AIR RIDE – Tri Axles
• 10 - Fontaine 48' Aluminum AIR RIDE - Tandem Axles
• 6 - East 48' Aluminum AIR RIDE – 6 Axles
• 5 - East 48' Aluminum AIR RIDE – 7 Axles
• 4 - Benson 48' Aluminum AIR RIDE – Tandem Axles
• 4 - Reitnouer 48' Aluminum AIR RIDE – 7 Axles
• 1 - Thruway 50' AIR RIDE – 8 Axles

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:

• 5 - 2010 models
• 5 - 2009 models
• 105 - 2007 models
• 100 - 2006 models
• 53 - 2005 models

Trailers:

• 27 - 2009 models
• 121 - 2008 models
• 101 - 2007 models
• 46 - 2006 models
• 10 - 2003 models
• 5 - 2002 models
• 10 - 2000 models

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

Leased: Independent Contractors & Exclusive Fleet Operators

Type and size of fleet

• Roughly seven (7) tractor-trailer combinations.
• All equipment is well maintained. Trailers comprised of 48' tandem and spread 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 - 232
• Independent Contractors - 7
• Broker Drivers - 30
• Accounting / Finance - 10
• Safety/Compliance/Recruiting/Driver Personnel - 10
• Operations - 21
• Sales/Traffic - 22
• Total - 332 employees

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SERVICE CONSIDERATIONS

• Communications, Tracking 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. We began installation of Qualcomm satellite communications as of January 2009.
• 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.)
• Overage, Shortage, 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 Leslye Kreighbaum, Manager, Compliance, at 800-348-8532 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, our Systems Administrator, at 800-348-8532 (ext. 8157), and he will advise you of our systems and their capabilities.
• 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
Policy Number: CLP000486A
Cargo Liability: $200,000
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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