<PAGE>

Exhibit 7.3 - Pro Forma Financial Information

<TABLE>
<CAPTION>
                                                          (in thousands, except shares)
                                                                                                             
                                                                              Unaudited         Unaudited 
                                     Transit   Carolina  Service   Capitol    Pro Forma         Pro Forma 
                                   Group, Inc.  Pacific  Express  Warehouse  Adjustments        Combined  
                                                                                                          
<S>                                <C>          <C>      <C>      <C>         <C>        <C>    <C>    
                          
                                                                                                          
Current assets                     $       284  $    973  $   792  $   1,668   $                $    3,717 
Property and equipment                       4     1,787    1,243     12,896          730   (b)     16,660 
Goodwill                                                                           16,490   (c)     16,490 
Other noncurrent assets                  6,764                            68                         6,832 
                                   -----------  --------  -------  ---------  ----------        ----------                        
Total assets                       $     7,052  $  2,760  $ 2,035  $  14,632  $    17,220       $   43,699 
                                                                                                             
Current debt                       $         -  $    711  $   516  $   3,734  $        -    (b) $    4,961 
Other current liabilities               12,887       407      152      1,900                        15,346 
Long-term debt                                     1,441      417      7,549        3,700   (c)     13,637 
                                                                                      530   (b)                
                                   -----------  --------  -------  ---------  -----------       ----------  
                                                                                                             
Total liabilities                       12,887     2,559    1,085     13,183        4,230           33,944 
                                                                                                             
Stockholder's equity (deficit)          (5,835)      201      950      1,449       12,990   (c)      9,755
                                   -----------  --------  -------  ---------  -----------       ----------
Total Liabilities &
     stockholder's equity          $     7,052  $  2,760  $ 2,035  $  14,632  $    17,220       $   43,699 
                                   ===========  ========  =======  =========  ===========       ==========          
</TABLE>
                                                                         
<TABLE>
<CAPTION>
                                                        For the six months ended June 30, 1997
                                   ----------------------------------------------------------------------- 
                                                            (in thousands, except shares)                  
                                                                              Unaudited         Unaudited 
                                     Transit   Carolina   Service   Capitol    Pro Forma        Pro Forma 
                                   Group, Inc.  Pacific   Express  Warehouse  Adjustments       Combined 
                                                                                                          
<S>                                <C>          <C>      <C>      <C>         <C>               <C>              
Revenues                                        $  4,722  $ 2,288 $    $9,628 $     1,500   (b) $   18,138 

Expenses                                                                                                     
  Salaries and wages expense                       1,780      674       2,667        (250)  (d)      5,339 
                                                                                      468   (b)             
  Operating expense                                2,298      429       4,992        (738)  (b)      6,981 
  Depreciation and amortization                      255      266       1,256         353   (e)      2,471 
                                                                                      275   (c)             
                                                                                       66   (b)             
  General and administration expense       268        43      148          32        (108)             383 
  Interest expense                                    68       45         517         388   (f)      1,018 
  Other expense                                      518      596        (244)       (500)             370 
                                   -----------  --------  -------  ----------  ----------       ----------                         
     Total expenses                        268     4,962    2,158       9,220         (46)          16,562 
                                                                                                             
     Operating income (loss)              (268)     (240)     130         408       1,546            1,576 
Provision for income taxes                            45      (62)       (190)        299               92 
                                   -----------  --------  -------  ----------  ----------       ----------
Income (loss) before discontinued                                                                            
 operations                               (268)     (195)      68         218       1,845            1,668 
                               
Discontinued operations                (13,570)        -        -           -           -          (13,570) 
                                   -----------  ---------  -------  ---------  ----------       ----------                         
Net income (loss)                  $   (13,838) $    (195) $    68  $     218  $    1,845       $  (11,902) 
                                                                                                             
Loss per common share:                                                                                       
  Continuing operations            $     (0.13)                                                 $     0.14 
  Discontinued operations                (2.77)                                                      (1.43) 
                                   -----------                                                  ----------                        
  Total                            $     (2.90)                                                 $    (1.29) 
                                   ===========                                                  ==========                        

Weighted average number of shares    4,909,528                                                   9,519,370 
                                                                                                             
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                             For the twelve months ended December 31, 1996
                                   -----------------------------------------------------------------------            
                                                  (in thousands, except shares)                                  
                                                                                                             
                                                                              Unaudited         Unaudited 
                                     Transit    Carolina  Service   Capitol   Pro Forma         Pro Forma 
                                   Group, Inc.  Pacific   Express  Warehouse  Adjustments       Combined 

<S>                                <C>          <C>       <C>      <C>        <C>         <C>   <C>      
Revenues                           $    23,404  $ 11,691  $ 4,428  $  16,920  $    3,000   (b)  $   36,039 
                                                                                 (23,404)  (g)             
Expenses                                                                                                     
  Salaries and wages expense            13,377     4,528    1,263      4,661        (800)  (d)      13,584 
                                                                                   3,932   (b)             
                                                                                 (13,377)  (g)             
  Operating expense                      7,126     5,533    1,875      8,705       1,587   (b)      17,700 
                                                                                  (7,126)  (g)             
  Depreciation and amortization          1,857       957      620      2,512         711   (e)       5,482 
                                                                                     550   (c)             
                                                                                     132   (b)             
                                                                                  (1,857)  (g)             
  General and administration expense     5,335        37      711        443     (4,585)   (g)       1,941 
  Interest expense                         717       226      114      1,068         280   (f)       1,688 
                                                                                    (717)  (g)           
  Other expense                            141       375      (33)      (487)       (141)  (g)        (145) 
                                    ----------  --------  -------  ---------  -----------       -----------           
     Total expenses                     28,553    11,656    4,550     16,902      (21,411)          40,250 
                                    ----------  --------  -------  ---------  -----------       -----------             
     Operating income (loss)            (5,149)       35     (122)        18        1,007           (4,211) 

Provision for income taxes                          (103)       19       (15)         294  (h)         195 
                                    ----------  --------  --------  --------  -----------     ------------ 
Income (loss) before discontinued                                                                            
 operations                             (5,149)      (68)     (103)        3        1,301           (4,016) 
Discontinued operations                      -         -         -         -            -                - 
                                    ----------  --------  --------  --------  -----------     ------------                        
Net income (loss)                   $   (5,149) $    (68) $   (103) $      3  $     1,301     $     (4,016) 
                                    ==========  ========  ========  ========  ===========     ============                         
Loss per common share:                                                                                       
  Continuing operations             $    (1.48)                                               $      (0.39) 
  Discontinued operations                                                                                    
                                    ----------                                                ------------                      
  Total                             $    (1.48)                                               $      (0.39) 
                                    ==========                                                ============     

Weighted average number of shares    3,758,671                                                  11,202,180 
</TABLE>                            


NOTES TO UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS:

(a)  On August 15, 1997, Transit Group, Inc. (the
"Company") completed the acquisition of Capital Warehouse,
Inc. ("Capital") and Service Express, Inc. ("Service").
Previously, on July 11, 1997, the Company completed the
acquisition of Carolina Pacific Distributors, Inc.
("Carolina").  Pursuant to the Stock Purchase Agreements
executed at the closings (the "Agreements"), the Company
purchased all the outstanding capital stock of Capital,
Service and Carolina.  The total purchase price of
approximately $18.4 million consists of $3.7 million in
cash, the issuance of 641,283 shares of common stock of
the Company to the shareholder of Capital and 903,226
shares of Company stock to the shareholder of Service and
the issuance of 1,733,000 shares of common stock of the
company to the shareholders of Carolina, and the
assumption of approximately $0.6 million of debt.  The
Company's and Service's financial statements are prepared
on a calendar year-end basis while Capital used a fiscal
year ended February 29, 1997 and Carolina used a fiscal
year ended September 30, 1996.  Accordingly, the
accompanying unaudited pro forma combined financial
statements combine the December 31, 1996 and June 30, 1997
financial statements of the Company and Service, and the
February 29, 1997 and August 31, 1997 financial statements
of Capital, and the September 30, 1996 and June 30, 1997
financial statements of Carolina, respectively.  Such
financial information is intended to reflect the combined
financial position and results of operations as of each of
the periods presented and is not necessarily indicative of
future combined financial position or results of
operations.

(b)  To reflect the purchase by the Company of certain
additional productive assets from an affiliate of Carolina
and the assumption of related borrowings.

(c)  To reflect the APB 16 purchase accounting adjustments
including the financing of $3.5 million in cash paid at
closing, the issuance of 3,277,509 shares at fair market
value of the Company's common stock to the shareholders of
Capital, Service and Carolina, resulting in goodwill of
approximately $16.4 million and amortization of goodwill
recorded in connection with the acquisition over a 30-year
period.

(d)  To reflect certain adjustments to salaries and
employee benefits expense resulting from the acquisition
of Carolina.

(e)  To eliminate the depreciation expense associated with
certain assets not acquired in the purchases of Carolina.

(f)  To reflect interest expense associated with new
borrowings acquired in connection with the acquisition at
an average annual interest rate of 8%.

(g)  To eliminate the discontinued parcel delivery and
courier operations at Transit Group, Inc.

(h)  To reflect the utilization of the Company's net
operating loss carryforwards to offset Capital, Service
and Carolina taxable income.