**UNITED        STATES**

**SECURITIES        AND EXCHANGE COMMISSION**

**FORM        10-K**

**Annual        Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of        1934**

**For        the Fiscal Year Ended December 31, 2006**

**or**

**Transition        Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of        1934**

**Commission        File No. 0-15057**

**P.A.M.        TRANSPORTATION SERVICES, INC.**

| **Delaware**                                                                                    |   | **71-0633135**                                                        |
|-------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|
| (State                  or other jurisdiction ofincorporation                  or organization) |   | (I.R.S.                  EmployerIdentification                  No.) |

**297        West Henri De Tonti Blvd, Tontitown, Arkansas 72770**

** **
**(479)        361-9111**

| Title                  of each class              |   | Name                  of each exchange on which registered |
|---------------------------------------------------|--------|------------------------------------------------------------|
| **Common                  Stock, $.01 par value** |   | **The                  NASDAQ Stock Market, LLC**          |

| Yes                   o  |   | No                   þ  |
|------------------------------------|--------|----------------------------------------|

| Yes                   o  |   | No                   þ  |
|------------------------------------|--------|----------------------------------------|

| Yes                   þ  |   | No                   o  |
|-----------------------------------------|--------|-----------------------------------|

----

| Large                  accelerated filer o |   | Accelerated                  filer þ |   | Non-accelerated                  filer o |
|-------------------------------------------------|--------|------------------------------------------------|--------|-----------------------------------------------|

| Yes                   o  |   | No                   þ  |
|------------------------------------|--------|----------------------------------------|

** **

** **

**DOCUMENTS        INCORPORATED BY REFERENCE**

**FORWARD-LOOKING        STATEMENTS**

----

**P.A.M.        TRANSPORTATION SERVICES, INC.**

**FORM        10-K**

**For        the fiscal year ended December 31, 2006**

**TABLE        OF CONTENTS**

|                     | **PART                  I**                                                                                                                                                     | Page     |
|--------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
| Item                  1  | Business                                                                                                                                                                        | 1        |
| Item                  1A | Risk                  Factors                                                                                                                                                   | 8        |
| Item                  1B | Unresolved                  Staff Comments                                                                                                                                      | 11       |
| Item                  2  | Properties                                                                                                                                                                      | 11       |
| Item                  3  | Legal                  Proceedings                                                                                                                                              | 11       |
| Item                  4  | Submission                  of Matters to a Vote of                  Security Holders                                                                                           | 11       |
|                     |                                                                                                                                                                            |     |
|                     | **PART                  II**                                                                                                                                                    |     |
| Item                  5  | Market                  for Registrant's Common Equity,                  Related Stockholder Mattersand                  Issuer Purchases of Equity                  Securities |  12 |
| Item                  6  | Selected                  Financial                  Data                                                                                                                       | 14       |
| Item                  7  | Management's                  Discussion and Analysis of Financial                  Conditionand                  Results of Operation                                          |  15 |
| Item                  7A | Quantitative                  and Qualitative Disclosures About Market                  Risk                                                                                    | 26       |
| Item                  8  | Financial                  Statements and Supplementary Data                                                                                                                    | 27       |
| Item                  9  | Changes                  in and Disagreements with Accountants                  on Accountingand                  Financial Disclosure                                          |  54 |
| Item                  9A | Controls                  and Procedures                                                                                                                                        | 54       |
| Item                  9B | Other                  Information                                                                                                                                              | 55       |
|                     |                                                                                                                                                                            |     |
|                     | **PART                  III**                                                                                                                                                   |     |
| Item                  10 | Directors,                  Executive Officers and Corporate                  Governance                                                                                        | 56       |
| Item                  11 | Executive                  Compensation                                                                                                                                         | 56       |
| Item                  12 | Security                  Ownership of Certain Beneficial Owners                  and Managementand                  Related Stockholder                  Matters               |  56 |
| Item                  13 | Certain                  Relationships and Related Transactions,                  and Director Independence                                                                     | 57       |
| Item                  14 | Principal                  Accounting Fees and                  Services                                                                                                        | 57       |
|                     |                                                                                                                                                                            |     |
|                     | **PART                  IV**                                                                                                                                                    |     |
| Item                  15 | Exhibits,                  Financial Statement                  Schedules                                                                                                       | 58       |
|                     |                                                                                                                                                                            |     |
|                     | **SIGNATURES**                                                                                                                                                                  | 61       |
|                     |                                                                                                                                                                            |     |
|                     | **EXHIBIT                  INDEX**                                                                                                                                              | 62       |

----

**PART        I**

**Item        1. Business.**

**Segment        Financial Information**

**Operations**

----

**Table            of Contents**

**Business        and Growth Strategy**

*Maintaining        Dedicated Fleets in High Density Lanes*

*Providing        Superior and Flexible Customer Service*

*Employing        Stringent Cost Controls*

*Making        Strategic Acquisitions*

----

**Table            of Contents**

**Industry**

**Competition        **

**Marketing        and Significant Customers**

** **

----

**Table            of Contents**

**Revenue        Equipment**

** **

----

**Table            of Contents**

**Technology**

**Maintenance**

**Employees**

----

**Table            of Contents**

**Drivers**

**Executive        Officers of the Registrant **

|   **Name**              |   **Age** |   **Position                  with Company**                                                       |  **Years                  of Service****With                  P.A.M.** |
|-----------------------------------|---------------------|--------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|
| Robert                  W. Weaver | 57                  | President                  and Chief Executive Officer                                                       | 24                                                                          |
| W.                  Clif Lawson   | 53                  | Executive                  Vice President and Chief Operating Officer                                        | 22                                                                          |
| Larry                  J. Goddard | 48                  | Vice                  President - Finance, Chief Financial Officer, Secretary and                  Treasurer | 19                                                                          |

**Internet        Web Site**

----

**Table            of Contents**

**Seasonality**

**Regulation**

----

**Table            of Contents**

**Item        1A. Risk Factors.**

*Our        business is subject to general economic and business factors that are largely        out of our control, any of which could have a material adverse effect on        our        operating results.*

*Numerous        competitive factors could impair our ability to maintain our current        profitability. These factors include, but are not limited to, the        following:*

----

**Table            of Contents**

*We        are highly dependent on our major customers, the loss of one or more of which        could have a material adverse effect on our business.*

*Ongoing        insurance and claims expenses could significantly reduce our        earnings.*

*We        may be unable to successfully integrate businesses we acquire into our        operations.*

*Difficulty        in attracting drivers could affect our profitability and ability to        grow.*

----

**Table            of Contents**

*If        we        are unable to retain our key employees, our business, financial condition        and        results of operations could be harmed.*

*We        have significant ongoing capital requirements that could affect our        profitability if we are unable to generate sufficient cash from        operations.*

*Our        operations are subject to various environmental laws and regulations, the        violation of which could result in substantial fines or        penalties.*

*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        material adverse effect on our business.*

----

**Table            of Contents**

**Item        1B. Unresolved Staff        Comments.**

**Item        2. Properties.**

|  Location                               | Own/Lease | DispatchOffice | MaintenanceFacility | SafetyTraining |
|----------------------------------------------|-----------|----------------|---------------------|----------------|
| Tontitown,                  Arkansas         | Own       | Yes            | Yes                 | Yes            |
| North                  Little Rock, Arkansas | Own       | Yes            | Yes                 | No             |
| Jacksonville,                  Florida       | Lease     | Yes            | Yes                 | Yes            |
| Breese,                  Illinois            | Lease     | Yes            | No                  | No             |
| Effingham,                  Illinois         | Lease     | No             | Yes                 | No             |
| Columbia,                  Mississippi       | Own       | No             | No                  | No             |
| Parsippany,                  New Jersey      | Lease     | Yes            | Yes                 | Yes            |
| Paulsboro,                  New Jersey       | Lease     | Yes            | No                  | No             |
| North                  Jackson, Ohio         | Lease     | Yes            | Yes                 | Yes            |
| Willard,                  Ohio               | Own       | Yes            | Yes                 | Yes            |
| Oklahoma                  City, Oklahoma     | Lease     | Yes            | Yes                 | Yes            |
| El                  Paso, Texas              | Lease     | Yes            | Yes                 | No             |
| Irving,                  Texas               | Own       | Yes            | Yes                 | Yes            |
| Laredo,                  Texas               | Lease     | Yes            | Yes                 | No             |

**Item        3. Legal Proceedings.**

**Item        4. Submission of Matters to a Vote of        Security Holders.**

----

**Table            of Contents**

**PART        II**

**Item        5. Market for Registrant’s Common Equity,        Related Stockholder Matters and Issuer Purchases of Equity        Securities.**

|                            |   | **High** |   | **Low** |   |
|---------------------------------|--------|----------|--------|---------|--------|
| First                  Quarter  |   | $        | 25.18  |    | $      | 17.51 |   |
| Second                  Quarter |   |     | 28.96  |    |   | 23.24 |   |
| Third                  Quarter  |   |     | 31.50  |    |   | 23.78 |   |
| Fourth                  Quarter |   |     | 26.68  |    |   | 20.90 |   |

|                            |   | **High** |   | **Low** |   |
|---------------------------------|--------|----------|--------|---------|--------|
| First                  Quarter  |   | $        | 19.49  |    | $      | 16.47 |   |
| Second                  Quarter |   |     | 17.35  |    |   | 13.43 |   |
| Third                  Quarter  |   |     | 17.90  |    |   | 15.71 |   |
| Fourth                  Quarter |   |     | 18.85  |    |   | 15.16 |   |

**Dividends**

**Repurchases        of Common Stock**

----

**Table            of Contents**

**Performance        Graph**

----

**Table            of Contents**

**Item        6. Selected Financial        Data.**

|                                                            |   | **Year                  Ended December 31,**                           |    |
|-----------------------------------------------------------------|--------|------------------------------------------------------------------------|---------|
|                                                            |   | **2006**                                                               |    | **2005** |   | **2004** |   | **2003** |   | **2002** |   |
|                                                            |   | **(in                  thousands, except earnings per share amounts)** |    |
| **Statement                  of Operations Data:**              |   |                                                                   |    |   |   |   |   |   |   |   |   |
| Operating                  revenues:                            |   |                                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                  revenues, before fuel surcharge      |   | $                                                                      | 351,373 |   | $ | 326,353 |   | $ | 309,475 |   | $ | 293,547 |   | $ | 264,012 |   |
| Fuel                  surcharge (1)                             |   |                                                                   | 48,896  |   |   | 34,527 |   |   | 15,591 |   |   | 7,491 |   |   | 2,042 |   |
| Total                  operating revenues                       |   |                                                                   | 400,269 |   |   | 360,880 |   |   | 325,066 |   |   | 301,038 |   |   | 266,054 |   |
|                                                            |   |                                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                  expenses:                            |   |                                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries,                  wages and benefits                   |   |                                                                   | 127,539 |   |   | 122,005 |   |   | 119,519 |   |   | 119,350 |   |   | 115,432 |   |
| Fuel                  expense (2)                               |   |                                                                   | 97,286  |   |   | 81,017 |   |   | 55,645 |   |   | 42,883 |   |   | 35,103 |   |
| Rent                  and purchased transportation              |   |                                                                   | 43,844  |   |   | 39,074 |   |   | 38,938 |   |   | 35,287 |   |   | 9,780 |   |
| Depreciation                  and amortization                  |   |                                                                   | 33,929  |   |   | 31,376 |   |   | 30,016 |   |   | 26,601 |   |   | 24,715 |   |
| Operating                  supplies (1)(2)                      |   |                                                                   | 25,682  |   |   | 23,114 |   |   | 21,718 |   |   | 20,358 |   |   | 18,100 |   |
| Operating                  taxes and licenses                   |   |                                                                   | 16,421  |   |   | 15,776 |   |   | 15,488 |   |   | 14,710 |   |   | 13,467 |   |
| Insurance                  and claims                           |   |                                                                   | 16,389  |   |   | 15,992 |   |   | 15,820 |   |   | 13,500 |   |   | 12,786 |   |
| Communications                  and utilities                   |   |                                                                   | 2,642   |   |   | 2,648 |   |   | 2,690 |   |   | 2,540 |   |   | 2,284 |   |
| Other                                                           |   |                                                                   | 5,426   |   |   | 6,205 |   |   | 5,131 |   |   | 4,755 |   |   | 4,620 |   |
| Loss                  on sale or disposal of property           |   |                                                                   | 47      |   |   | 147 |   |   | 915 |   |   | 368 |   |   | 127 |   |
| Total                  operating expenses                       |   |                                                                   | 369,205 |   |   | 337,354 |   |   | 305,880 |   |   | 280,352 |   |   | 236,414 |   |
| Operating                  income                               |   |                                                                   | 31,064  |   |   | 23,526 |   |   | 19,186 |   |   | 20,686 |   |   | 29,640 |   |
| Non-operating                  income                           |   |                                                                   | 448     |   |   | 477 |   |   | 464 |   |   | 276 |   |   | - |   |
| Interest                  expense                               |   |                                                                   | (1,475  | ) |   | (1,881 | ) |   | (1,758 | ) |   | (1,667 | ) |   | (1,985 | ) |
| Income                  before income taxes                     |   |                                                                   | 30,037  |   |   | 22,122 |   |   | 17,892 |   |   | 19,295 |   |   | 27,655 |   |
| Income                  taxes                                   |   |                                                                   | 12,073  |   |   | 8,983 |   |   | 7,304 |   |   | 7,805 |   |   | 11,062 |   |
| Net                  income                                     |   | $                                                                      | 17,964  |   | $ | 13,139 |   | $ | 10,588 |   | $ | 11,490 |   | $ | 16,593 |   |
| Earnings                  per common share:                     |   |                                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                           |   | $                                                                      | 1.74    |   | $ | 1.20 |   | $ | 0.94 |   | $ | 1.02 |   | $ | 1.56 |   |
| Diluted                                                         |   | $                                                                      | 1.74    |   | $ | 1.20 |   | $ | 0.94 |   | $ | 1.01 |   | $ | 1.55 |   |
| Average                  common shares outstanding - Basic      |   |                                                                   | 10,296  |   |   | 10,966 |   |   | 11,298 |   |   | 11,291 |   |   | 10,669 |   |
| Average                  common shares outstanding - Diluted(3) |   |                                                                   | 10,302  |   |   | 10,976 |   |   | 11,324 |   |   | 11,326 |   |   | 10,715 |   |

| (1)   | In                order to conform to industry practice, during 2004 the Company began                to                classify fuel surcharges charged to customers as revenue rather than                as a                reduction of operating supplies expense. This reclassification has                no                effect on net operating income, net income or earnings per share.                The                Company has made corresponding reclassifications to comparative periods                shown. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)   | Because                of the increased impact of fuel costs on the Company’s results of                operations in recent years, during 2006 the Company began to separately                display as a line item “Fuel expense” for amounts paid for fuel which had                previously been aggregated with other operating supplies and included                in                the line item “Operating supplies”. This reclassification has no effect on                net operating income, net income or earnings per share. The Company                has                made corresponding reclassifications to comparative periods                shown. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3)   | Diluted                income per share for 2006, 2005, 2004, 2003 and 2002 assumes the                exercise                of stock options to purchase an aggregate of 55,738, 22,297, 62,224,                77,758 and 87,984 shares of common stock,                respectively. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Table            of Contents**

|                                                                        |   | **At                  December 31,**         |     |
|-----------------------------------------------------------------------------|--------|----------------------------------------------|----------|
|                                                                        |   | **2006**                                     |     | **2005** |   | **2004** |   | **2003** |   | **2002** |   |
| **Balance                  Sheet Data:**                                    |   | **(in                  thousands)**          |     |
| Total                  assets                                               |   | $                                            | 314,246  |   | $ | 293,441 |   | $ | 285,349 |   | $ | 264,849 |   | $ | 228,320 |   |
| Long-term                  debt, excluding current portion                  |   |                                         | 21,205   |   |   | 39,693 |   |   | 23,225 |   |   | 26,740 |   |   | 20,175 |   |
| Stockholders'                  equity                                       |   |                                         | 185,028  |   |   | 164,762 |   |   | 168,543 |   |   | 156,875 |   |   | 144,452 |   |
|                                                                        |   |                                         |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                             |   | **Year                  Ended December 31,** |
|                                                                        |   |                                         | **2006** |   |   | **2005** |   |   | **2004** |   |   | **2003** |   |   | **2002** |   |
| **Operating                  Data:**                                        |   |                                         |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                  ratio (1)                                        |   |                                         | 91.2     | % |   | 92.8 | % |   | 93.8 | % |   | 92.9 | % |   | 88.7 | % |
| Average                  number of truckloads per week                      |   |                                         | 7,200    |   |   | 6,946 |   |   | 7,278 |   |   | 7,105 |   |   | 6,463 |   |
| Average                  miles per trip                                     |   |                                         | 659      |   |   | 680 |   |   | 664 |   |   | 701 |   |   | 755 |   |
| Total                  miles traveled (in thousands)                        |   |                                         | 229,810  |   |   | 228,624 |   |   | 235,894 |   |   | 242,890 |   |   | 238,256 |   |
| Average                  miles per tractor                                  |   |                                         | 123,156  |   |   | 125,479 |   |   | 127,124 |   |   | 131,934 |   |   | 136,772 |   |
| Average                  revenue, before fuel surcharge per tractor per day |   | $                                            | 778      |   | $ | 740 |   | $ | 684 |   | $ | 653 |   | $ | 621 |   |
| Average                  revenue, before fuel surcharge per loaded mile     |   | $                                            | 1.43     |   | $ | 1.33 |   | $ | 1.19 |   | $ | 1.13 |   | $ | 1.15 |   |
| Empty                  mile factor                                          |   |                                         | 5.9      | % |   | 5.5 | % |   | 4.7 | % |   | 4.5 | % |   | 4.0 | % |
|                                                                        |   |                                         |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **At                  end of period:**                                      |   |                                         |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                  company-owned/leased tractors                        |   |                                         | 1,998(2  | ) |   | 1,792(3 | ) |   | 1,857(4 | ) |   | 1,913(5 | ) |   | 1,781(6 | ) |
| Average                  age of tractors (in years)                         |   |                                         | 1.55     |   |   | 1.43 |   |   | 1.70 |   |   | 1.94 |   |   | 2.12 |   |
| Total                  trailers                                             |   |                                         | 4,540    |   |   | 4,406 |   |   | 4,257 |   |   | 4,175 |   |   | 3,973 |   |
| Average                  age of trailers (in years)                         |   |                                         | 4.16     |   |   | 3.92 |   |   | 4.69 |   |   | 5.15 |   |   | 5.74 |   |
| Number                  of employees                                        |   |                                         | 3,062    |   |   | 3,035 |   |   | 2,736 |   |   | 2,765 |   |   | 2,538 |   |

**Item        7. Management’s Discussion and Analysis of Financial Condition and        Results of Operations.**

**Business        Overview**

----

**Table            of Contents**

**Results        of Operations - Truckload Services**

|                                                             |   | **Years                  Ended December 31,** |   |
|------------------------------------------------------------------|--------|-----------------------------------------------|--------|
|                                                        |   | **2006**                                      |   | **2005** |   | **2004** |   |
| Operating                  revenues, before fuel surcharge  |   |                                          | 100.0  | % |   | 100.0 | % |   | 100.0 | % |
| Operating                  expenses:                             |   |                                          |   |   |   |   |   |   |   |   |
| Salaries,                  wages and benefits                    |   |                                          | 40.6   |   |   | 41.8 |   |   | 43.8 |   |
| Fuel                  expense, net of fuel surcharge             |   |                                          | 16.0   |   |   | 16.6 |   |   | 15.2 |   |
| Rent                  and purchased transportation               |   |                                          | 1.7    |   |   | 1.2 |   |   | 0.6 |   |
| Depreciation                  and amortization                   |   |                                          | 11.0   |   |   | 10.9 |   |   | 11.2 |   |
| Operating                  supplies                              |   |                                          | 8.3    |   |   | 8.0 |   |   | 8.1 |   |
| Operating                  taxes and licenses                    |   |                                          | 5.3    |   |   | 5.5 |   |   | 5.8 |   |
| Insurance                  and claims                            |   |                                          | 5.3    |   |   | 5.5 |   |   | 5.9 |   |
| Communications                  and utilities                    |   |                                          | 0.8    |   |   | 0.9 |   |   | 0.9 |   |
| Other                                                            |   |                                          | 1.6    |   |   | 1.8 |   |   | 1.7 |   |
| Loss                  on sale or disposal of property            |   |                                          | 0.0    |   |   | 0.1 |   |   | 0.3 |   |
| Total                  operating expenses                        |   |                                          | 90.6   |   |   | 92.3 |   |   | 93.5 |   |
| Operating                  income                                |   |                                          | 9.4    |   |   | 7.7 |   |   | 6.5 |   |
| Non-operating                  income                            |   |                                          | 0.1    |   |   | 0.1 |   |   | 0.2 |   |
| Interest                  expense                                |   |                                          | (0.4   | ) |   | (0.5 | ) |   | (0.5 | ) |
| Income                  before income taxes                      |   |                                          | 9.1    | % |   | 7.3 | % |   | 6.2 | % |

**2006        Compared to 2005**

----

**Table            of Contents**

----

**Table            of Contents**

**2005        Compared to 2004**

----

**Table            of Contents**

----

**Table            of Contents**

**Results        of Operations - Logistics and Brokerage Services**

|                                                                      |   | **Years                  Ended December 31,** |   |
|---------------------------------------------------------------------------|--------|-----------------------------------------------|--------|
|                                                                 |   | **2006**                                      |   | **2005** |   | **2004** |   |
| Operating                  revenues, before fuel surcharge           |   |                                          | 100.0  | % |   | 100.0 | % |   | 100.0 | % |
| Operating                  expenses:                                      |   |                                          |   |   |   |   |   |   |   |   |
| Salaries,                  wages and benefits                             |   |                                          | 5.0    |   |   | 5.1 |   |   | 5.5 |   |
| Fuel                  expense                                             |   |                                          | 0.0    |   |   | 0.0 |   |   | 0.0 |   |
| Rent                  and purchased transportation, net of fuel surcharge |   |                                          | 88.3   |   |   | 88.0 |   |   | 87.8 |   |
| Depreciation                  and amortization                            |   |                                          | 0.0    |   |   | 0.2 |   |   | 0.3 |   |
| Operating                  supplies                                       |   |                                          | 0.0    |   |   | 0.0 |   |   | 0.0 |   |
| Operating                  taxes and licenses                             |   |                                          | 0.0    |   |   | 0.0 |   |   | 0.0 |   |
| Insurance                  and claims                                     |   |                                          | 0.0    |   |   | 0.1 |   |   | 0.1 |   |
| Communications                  and utilities                             |   |                                          | 0.3    |   |   | 0.4 |   |   | 0.4 |   |
| Other                                                                     |   |                                          | 1.4    |   |   | 2.5 |   |   | 1.6 |   |
| Loss                  on sale or disposal of property                     |   |                                          | 0.0    |   |   | 0.0 |   |   | 0.0 |   |
| Total                  operating expenses                                 |   |                                          | 95.0   |   |   | 96.3 |   |   | 95.7 |   |
| Operating                  income                                         |   |                                          | 5.0    |   |   | 3.7 |   |   | 4.3 |   |
| Non-operating                  income                                     |   |                                          | 0.0    |   |   | 0.0 |   |   | 0.0 |   |
| Interest                  expense                                         |   |                                          | (0.4   | ) |   | (0.6 | ) |   | (0.6 | ) |
| Income                  before income taxes                               |   |                                          | 4.6    | % |   | 3.1 | % |   | 3.7 | % |

**2006        Compared to 2005**

----

**Table            of Contents**

**2005        Compared to 2004**

**Results        of Operations - Combined Services**

**2006        Compared to 2005**

**2005        Compared to 2004**

**Quarterly        Results of Operations **

|                                        |   | **Quarter                  Ended**                                  |    |
|---------------------------------------------|--------|---------------------------------------------------------------------|---------|
|                                        |   | **Mar.                  31,****2006**                               |    | **June                  30,****2006** |   | **Sept.                  30,****2006** |   | **Dec.                  31,****2006** |   | **Mar.                  31,****2005** |   | **June                  30,****2005** |   | **Sept.                  30,****2005** |   | **Dec.                  31,****2005** |   |
|                                        |   | **(unaudited)**                                                     |    |
|                                        |   | **(in                  thousands, except earnings per share data)** |    |
| Operating                  revenues         |   | $                                                                   | 100,525 |   | $ | 103,365 |   | $ | 99,874 |   | $ | 96,505 |   | $ | 86,192 |   | $ | 91,027 |   | $ | 88,484 |   | $ | 95,177 |   |
| Total                  operating expenses   |   |                                                                | 91,473  |   |   | 94,375 |   |   | 94,202 |   |   | 89,154 |   |   | 81,034 |   |   | 84,479 |   |   | 84,471 |   |   | 87,370 |   |
| Operating                  income           |   |                                                                | 9,052   |   |   | 8,990 |   |   | 5,672 |   |   | 7,351 |   |   | 5,158 |   |   | 6,548 |   |   | 4,013 |   |   | 7,807 |   |
| Net                  income                 |   |                                                                | 5,183   |   |   | 5,241 |   |   | 3,268 |   |   | 4,272 |   |   | 2,903 |   |   | 3,680 |   |   | 2,213 |   |   | 4,343 |   |
| Earnings                  per common share: |   |                                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                       |   | $                                                                   | 0.50    |   | $ | 0.51 |   | $ | 0.32 |   | $ | 0.41 |   | $ | 0.26 |   | $ | 0.33 |   | $ | 0.20 |   | $ | 0.41 |   |
| Diluted                                     |   | $                                                                   | 0.50    |   | $ | 0.51 |   | $ | 0.32 |   | $ | 0.41 |   | $ | 0.26 |   | $ | 0.33 |   | $ | 0.20 |   | $ | 0.41 |   |

----

**Table            of Contents**

**Liquidity        and Capital Resources**

----

**Table            of Contents**

----

**Table            of Contents**

**Contractual        Obligations and Commercial Commitments**

|                                  |   | Payments                  due by period(in                  thousands) |   |
|---------------------------------------|--------|------------------------------------------------------------------------|--------|
|                                  |   |  Total                                                            |   | Less                  than1                  year |   | 1                  to 3Years |   | 4                  to 5Years |   | More                  than5                  Years |   |
|                                  |   |                                                                   |   |   |   |   |   |   |   |   |   |
| Long-term                  debt       |   | $                                                                      | 23,120 |   | $ | 1,915 |   | $ | 21,061 |   | $ | 144 |   | $ | - |   |
| Operating                  leases (1) |   |                                                                   | 1,358  |   |   | 560 |   |   | 633 |   |   | 165 |   |   | - |   |
| Total                                 |   | $                                                                      | 24,478 |   | $ | 2,475 |   | $ | 21,694 |   | $ | 309 |   | $ | - |   |
|                                  |   |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

**Off-Balance        Sheet Arrangements**

**Insurance**

**Inflation**

**Adoption        of Accounting Policies**

----

**Table            of Contents**

**Critical        Accounting Policies**

*Accounts        Receivable*

*Property        and equipment*

*Self        Insurance*

*Revenue        Recognition*

*Prepaid        Tires*

*Income        Taxes*

*Business        Combinations and Goodwill*

----

**Table            of Contents**

**Item        7A. Quantitative and Qualitative Disclosure about Market        Risk.**

**Equity        Price Risk**

**Interest        Rate Risk**

**Commodity        Price Risk**

----

**Table            of Contents**

**Item        8. Financial Statements and Supplementary        Data.**

----

**Table            of Contents**

**Report        of Independent Registered Public Accounting Firm**

*Internal        Control-Integrated Framework*

----

**Table            of Contents**

**REPORT        OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

----

**Table            of Contents**

| **P.A.M.                  TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES** **CONSOLIDATED                  BALANCE SHEETS****DECEMBER                  31, 2006 AND 2005****(in                  thousands, except share and per share data)** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                |   |   |   |   |   |
|                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |
| **ASSETS**                                                                                                                                                                                                                                          |   |   | **2006** |   |   | **2005** |   |
|                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |
| CURRENT                  ASSETS:                                                                                                                                                                                                                    |   |   |   |   |   |   |   |
| Cash                  and cash equivalents                                                                                                                                                                                                          |   | $ | 1,040 |   | $ | 1,129 |   |
| Accounts                  receivable—net:                                                                                                                                                                                                     |   |   |   |   |   |   |   |
| Trade                                                                                                                                                                                                                                               |   |   | 61,469 |   |   | 65,433 |   |
| Other                                                                                                                                                                                                                                               |   |   | 1,361 |   |   | 1,392 |   |
| Inventories                                                                                                                                                                                                                                         |   |   | 819 |   |   | 749 |   |
| Prepaid                  expenses and deposits                                                                                                                                                                                                      |   |   | 14,928 |   |   | 15,095 |   |
| Marketable                  equity securities available-for-sale                                                                                                                                                                                    |   |   | 14,437 |   |   | 10,999 |   |
| Income                  taxes refundable                                                                                                                                                                                                            |   |   | 498 |   |   | 225 |   |
|                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |
| Total                  current assets                                                                                                                                                                                                               |   |   | 94,552 |   |   | 95,022 |   |
|                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |
| PROPERTY                  AND EQUIPMENT:                                                                                                                                                                                                            |   |   |   |   |   |   |   |
| Land                                                                                                                                                                                                                                                |   |   | 2,674 |   |   | 2,674 |   |
| Structures                  and improvements                                                                                                                                                                                                        |   |   | 9,383 |   |   | 9,319 |   |
| Revenue                  equipment                                                                                                                                                                                                                  |   |   | 286,933 |   |   | 250,664 |   |
| Office                  furniture and equipment                                                                                                                                                                                                     |   |   | 6,890 |   |   | 6,692 |   |
|                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |
| Total                  property and equipment                                                                                                                                                                                                       |   |   | 305,880 |   |   | 269,349 |   |
|                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |
| Accumulated                  depreciation                                                                                                                                                                                                           |   |   | (102,566 | ) |   | (87,854 | ) |
|                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |
| Net                  property and equipment                                                                                                                                                                                                         |   |   | 203,314 |   |   | 181,495 |   |
|                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |
| OTHER                  ASSETS:                                                                                                                                                                                                                      |   |   |   |   |   |   |   |
| Goodwill                                                                                                                                                                                                                                            |   |   | 15,413 |   |   | 15,413 |   |
| Non-compete                  agreements, net                                                                                                                                                                                                        |   |   | 217 |   |   | 417 |   |
| Other                                                                                                                                                                                                                                               |   |   | 750 |   |   | 1,094 |   |
|                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |
| Total                  other assets                                                                                                                                                                                                                 |   |   | 16,380 |   |   | 16,924 |   |
|                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |
| TOTAL                  ASSETS                                                                                                                                                                                                                       |   | $ | 314,246 |   | $ | 293,441 |   |
|                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                     |   |   |   |   |   | (Continued) |   |

----

**Table            of Contents**

| **CONSOLIDATED                  BALANCE SHEETS****DECEMBER                  31, 2006 AND 2005****(in                  thousands, except share and per share data)**                                                                                                         |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                        |   |   |   |   |   |
|                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
| **LIABILITIES                  AND SHAREHOLDERS' EQUITY**                                                                                                                                                                                                                   |   |   | **2006** |   |   | **2005** |   |
|                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
| CURRENT                  LIABILITIES:                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |
| Accounts                  payable                                                                                                                                                                                                                                           |   | $ | 38,510 |   | $ | 22,055 |   |
| Accrued                  expenses and other liabilities                                                                                                                                                                                                                     |   |   | 9,994 |   |   | 10,507 |   |
| Current                  maturities of long-term debt                                                                                                                                                                                                                       |   |   | 1,915 |   |   | 1,859 |   |
| Deferred                  income taxes—current                                                                                                                                                                                                                        |   |   | 5,658 |   |   | 7,134 |   |
|                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
| Total                  current liabilities                                                                                                                                                                                                                                  |   |   | 56,077 |   |   | 41,555 |   |
|                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
| Long-term                  debt—less                  current portion                                                                                                                                                                                                 |   |   | 21,205 |   |   | 39,693 |   |
| Deferred                  income taxes—less                  current portion                                                                                                                                                                                          |   |   | 51,902 |   |   | 47,197 |   |
| Other                                                                                                                                                                                                                                                                       |   |   | 34 |   |   | 234 |   |
|                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
| Total                  liabilities                                                                                                                                                                                                                                          |   |   | 129,218 |   |   | 128,679 |   |
|                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
| COMMITMENTS                  AND CONTINGENCIES                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
| SHAREHOLDERS'                  EQUITY                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |
| Preferred                  stock, $.01 par value, 10,000,000 sharesauthorized;                  none issued                                                                                                                                                                 |   |   | - |   |   | - |   |
| Common                  stock, $.01 par value, 40,000,000 sharesauthorized;                  11,362,207 and 11,344,207 shares issued;10,303,607                  and 10,285,607 shares outstanding atDecember                  31, 2006 and December 31, 2005, respectively |   |   | 114 |   |   | 113 |   |
| Additional                  paid-in capital                                                                                                                                                                                                                                 |   |   | 77,309 |   |   | 76,429 |   |
| Accumulated                  other comprehensive income                                                                                                                                                                                                                     |   |   | 3,142 |   |   | 1,721 |   |
| Treasury                  stock, at cost; 1,058,600 shares                                                                                                                                                                                                                  |   |   | (17,869 | ) |   | (17,869 | ) |
| Retained                  earnings                                                                                                                                                                                                                                          |   |   | 122,332 |   |   | 104,368 |   |
|                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
| Total                  shareholders’ equity                                                                                                                                                                                                                           |   |   | 185,028 |   |   | 164,762 |   |
|                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
| TOTAL                  LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                                                                                                 |   | $ | 314,246 |   | $ | 293,441 |   |
|                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                        |   |   |   |   |   | (Concluded) |   |
| See                  notes to consolidated financial                  statements.                                                                                                                                                                                           |

----

**Table            of Contents**

| **P.A.M.                  TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES** **CONSOLIDATED                  STATEMENTS OF INCOME****YEARS                  ENDED DECEMBER 31, 2006, 2005 AND 2004****(in                  thousands, except per share data)** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                              |   | **2006** |   | **2005** |   | **2004** |   |
| OPERATING                  REVENUES:                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| Revenue,                  before fuel surcharge                                                                                                                                                                                                                   |   | $ | 351,373 |   | $ | 326,353 |   | $ | 309,475 |   |
| Fuel                  surcharge                                                                                                                                                                                                                                   |   |   | 48,896 |   |   | 34,527 |   |   | 15,591 |   |
|                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| Total                  operating revenues                                                                                                                                                                                                                         |   |   | 400,269 |   |   | 360,880 |   |   | 325,066 |   |
|                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| OPERATING                  EXPENSES AND COSTS:                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |
| Salaries,                  wages and benefits                                                                                                                                                                                                                     |   |   | 127,539 |   |   | 122,005 |   |   | 119,519 |   |
| Fuel                  expense                                                                                                                                                                                                                                     |   |   | 97,286 |   |   | 81,017 |   |   | 55,645 |   |
| Rents                  and purchased transportation                                                                                                                                                                                                               |   |   | 43,844 |   |   | 39,074 |   |   | 38,938 |   |
| Depreciation                  and amortization                                                                                                                                                                                                                    |   |   | 33,929 |   |   | 31,376 |   |   | 30,016 |   |
| Operating                  supplies and expenses                                                                                                                                                                                                                  |   |   | 25,682 |   |   | 23,114 |   |   | 21,718 |   |
| Operating                  taxes and licenses                                                                                                                                                                                                                     |   |   | 16,421 |   |   | 15,776 |   |   | 15,488 |   |
| Insurance                  and claims                                                                                                                                                                                                                             |   |   | 16,389 |   |   | 15,992 |   |   | 15,820 |   |
| Communications                  and utilities                                                                                                                                                                                                                     |   |   | 2,642 |   |   | 2,648 |   |   | 2,690 |   |
| Other                                                                                                                                                                                                                                                             |   |   | 5,426 |   |   | 6,205 |   |   | 5,131 |   |
| Loss                  on sale or disposal of equipment                                                                                                                                                                                                            |   |   | 47 |   |   | 147 |   |   | 915 |   |
|                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| Total                  operating expenses and costs                                                                                                                                                                                                               |   |   | 369,205 |   |   | 337,354 |   |   | 305,880 |   |
|                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| OPERATING                  INCOME                                                                                                                                                                                                                                 |   |   | 31,064 |   |   | 23,526 |   |   | 19,186 |   |
|                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| NON-OPERATING                  INCOME                                                                                                                                                                                                                             |   |   | 448 |   |   | 477 |   |   | 464 |   |
| INTEREST                  EXPENSE                                                                                                                                                                                                                                 |   |   | (1,475 | ) |   | (1,881 | ) |   | (1,758 | ) |
|                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| INCOME                  BEFORE INCOME TAXES                                                                                                                                                                                                                       |   |   | 30,037 |   |   | 22,122 |   |   | 17,892 |   |
|                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| FEDERAL                  AND STATE INCOME TAXES:                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
| Current                                                                                                                                                                                                                                                           |   |   | 9,768 |   |   | 7,572 |   |   | 479 |   |
| Deferred                                                                                                                                                                                                                                                          |   |   | 2,305 |   |   | 1,411 |   |   | 6,825 |   |
|                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| Total                  federal and state income taxes                                                                                                                                                                                                             |   |   | 12,073 |   |   | 8,983 |   |   | 7,304 |   |
|                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| NET                  INCOME                                                                                                                                                                                                                                       |   | $ | 17,964 |   | $ | 13,139 |   | $ | 10,588 |   |
|                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| EARNINGS                  PER COMMON SHARE:                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                                                                                                                                                             |   | $ | 1.74 |   | $ | 1.20 |   | $ | 0.94 |   |
|                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| Diluted                                                                                                                                                                                                                                                           |   | $ | 1.74 |   | $ | 1.20 |   | $ | 0.94 |   |
|                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| AVERAGE                  COMMON SHARES OUTSTANDING:                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                                                                                                                                                             |   |   | 10,296 |   |   | 10,966 |   |   | 11,298 |   |
|                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| Diluted                                                                                                                                                                                                                                                           |   |   | 10,302 |   |   | 10,976 |   |   | 11,324 |   |
|                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| See                  notes to consolidated financial                  statements.                                                                                                                                                                                 |

----

**Table            of Contents**

| **P.A.M.                  TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES** **CONSOLIDATED                  STATEMENTS OF STOCKHOLDERS’ EQUITY AND OTHER COMPREHENSIVE                  INCOME****YEARS                  ENDED DECEMBER 31, 2006, 2005 AND 2004****(in                  thousands)** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                           |   | **Common                  Stock****Shares                  / Amount** |   | **Additional                  Paid-In Capital** |   | **Other                  Comprehensive Income** |   | **Accumulated                  Other Comprehensive Income** |   | **Treasury                  Stock** |   | **Retained                  Earnings** |   | **Total** |   |
| BALANCE—                  January 1, 2004                                                                                                                                                                                                                                                                |   |   | 11,294 |   | $ | 113 |   | $ | 75,957 |   |   |   |   | $ | 164 |   | $ | - |   | $ | 80,641 |   | $ | 156,875 |   |
|                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Components                  of comprehensive income:                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  earnings                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   | $ | 10,588 |   |   |   |   |   |   |   |   | 10,588 |   |   | 10,588 |   |
|                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                  comprehensive gain:                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                  gain on hedge,                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net                  of tax of $314                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   | 481 |   |   | 481 |   |   |   |   |   |   |   |   | 481 |   |
| Unrealized                  gain on marketable                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| securities,                  net of tax of $371                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   | 506 |   |   | 506 |   |   |   |   |   |   |   |   | 506 |   |
| Total                  comprehensive income                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   | $ | 11,575 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercise                  of stock options-shares                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| issued                  including tax benefits                                                                                                                                                                                                                                                                 |   |   | 9 |   |   |   |   |   | 93 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 93 |   |
|                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE—                  December 31, 2004                                                                                                                                                                                                                                                              |   |   | 11,303 |   |   | 113 |   |   | 76,050 |   |   |   |   |   | 1,151 |   |   | - |   |   | 91,229 |   |   | 168,543 |   |
|                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Components                  of comprehensive income:                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  earnings                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   | $ | 13,139 |   |   |   |   |   |   |   |   | 13,139 |   |   | 13,139 |   |
|                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                  comprehensive gain:                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                  gain on hedge,                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net                  of tax of $195                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   | 282 |   |   | 282 |   |   |   |   |   |   |   |   | 282 |   |
| Unrealized                  gain on marketable                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| securities,                  net of tax of $189                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   | 288 |   |   | 288 |   |   |   |   |   |   |   |   | 288 |   |
| Total                  comprehensive income                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   | $ | 13,709 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Treasury                  stock repurchases                                                                                                                                                                                                                                                                    |   |   | (1,059 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   | (17,869 | ) |   |   |   |   | (17,869 | ) |
|                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercise                  of stock options-shares                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| issued                  including tax benefits                                                                                                                                                                                                                                                                 |   |   | 41 |   |   |   |   |   | 379 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 379 |   |
|                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE—                  December 31, 2005                                                                                                                                                                                                                                                              |   |   | 10,285 |   |   | 113 |   |   | 76,429 |   |   |   |   |   | 1,721 |   |   | (17,869 | ) |   | 104,368 |   |   | 164,762 |   |
|                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Components                  of comprehensive income:                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  earnings                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   | $ | 17,964 |   |   |   |   |   |   |   |   | 17,964 |   |   | 17,964 |   |
|                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                  comprehensive gain:                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                  gain on hedge,                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net                  of tax of $13                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   | 19 |   |   | 19 |   |   |   |   |   |   |   |   | 19 |   |
| Unrealized                  gain on marketable                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| securities,                  net of tax of $923                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   | 1,402 |   |   | 1,402 |   |   |   |   |   |   |   |   | 1,402 |   |
| Total                  comprehensive income                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   | $ | 19,385 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercise                  of stock options-shares                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| issued                  including tax benefits                                                                                                                                                                                                                                                                 |   |   | 18 |   |   | 1 |   |   | 369 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 370 |   |
|                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Share-based                  compensation                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   | 511 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 511 |   |
|                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE—                  December 31, 2006                                                                                                                                                                                                                                                              |   |   | 10,303 |   | $ | 114 |   | $ | 77,309 |   |   |   |   | $ | 3,142 |   | $ | (17,869 | ) | $ | 122,332 |   | $ | 185,028 |   |
|                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                  notes to consolidated financial                  statements.                                                                                                                                                                                                                              |

----

| **P.A.M.                  TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES** **CONSOLIDATED                  STATEMENTS OF CASH FLOWS****YEARS                  ENDED DECEMBER 31, 2006, 2005 AND 2004****(in                  thousands)** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                           |   | **2006** |   | **2005** |   | **2004** |   |
| OPERATING                  ACTIVITIES:                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |
| Net                  income                                                                                                                                                                                                                    |   | $ | 17,964 |   | $ | 13,139 |   | $ | 10,588 |   |
| Adjustments                  to reconcile net income to net cash provided by operating                  activities:                                                                                                                            |   |   |   |   |   |   |   |   |   |   |
| Depreciation                  and amortization                                                                                                                                                                                                 |   |   | 33,929 |   |   | 31,376 |   |   | 30,016 |   |
| Bad                  debt expense (recovery)                                                                                                                                                                                                   |   |   | 310 |   |   | 1,428 |   |   | (410 | ) |
| Stock                  compensation—net                  of excess tax benefits                                                                                                                                                          |   |   | 441 |   |   | - |   |   | - |   |
| Non-compete                  agreement amortization—net                  of payments                                                                                                                                                     |   |   | - |   |   | 37 |   |   | 88 |   |
| Provision                  for deferred income taxes                                                                                                                                                                                           |   |   | 2,305 |   |   | 1,411 |   |   | 6,825 |   |
| Reclassification                  of unrealized loss on marketable equity securities                                                                                                                                                           |   |   | 120 |   |   | 153 |   |   | - |   |
| Gain                  on sale of marketable equity securities                                                                                                                                                                                  |   |   | (30 | ) |   | - |   |   | - |   |
| Loss                  on sale or disposal of equipment                                                                                                                                                                                         |   |   | 47 |   |   | 147 |   |   | 915 |   |
| Changes                  in operating assets and liabilities:                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
| Accounts                  receivable                                                                                                                                                                                                           |   |   | 3,685 |   |   | (19,236 | ) |   | (1,393 | ) |
| Prepaid                  expenses, inventories, and other assets                                                                                                                                                                               |   |   | 440 |   |   | (40 | ) |   | (8,279 | ) |
| Income                  taxes refundable                                                                                                                                                                                                       |   |   | (202 | ) |   | 528 |   |   | 502 |   |
| Trade                  accounts payable                                                                                                                                                                                                        |   |   | 2,219 |   |   | (5,881 | ) |   | 7,202 |   |
| Accrued                  expenses                                                                                                                                                                                                              |   |   | (525 | ) |   | 679 |   |   | (1,339 | ) |
|                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |
| Net                  cash provided by operating activities                                                                                                                                                                                     |   |   | 60,703 |   |   | 23,741 |   |   | 44,715 |   |
|                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |
| INVESTING                  ACTIVITIES:                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |
| Purchases                  of property and equipment                                                                                                                                                                                           |   |   | (53,514 | ) |   | (62,013 | ) |   | (53,703 | ) |
| Proceeds                  from sale or disposal of equipment                                                                                                                                                                                   |   |   | 11,987 |   |   | 22,850 |   |   | 31,360 |   |
| Net                  purchases of marketable equity securities                                                                                                                                                                                 |   |   | (1,203 | ) |   | (1,884 | ) |   | (2,423 | ) |
| Other                                                                                                                                                                                                                                          |   |   | - |   |   | 20 |   |   | 36 |   |
|                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |
| Net                  cash used in investing activities                                                                                                                                                                                         |   |   | (42,730 | ) |   | (41,027 | ) |   | (24,730 | ) |
|                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |
| FINANCING                  ACTIVITIES:                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |
| Borrowings                  under line of credit                                                                                                                                                                                               |   |   | 446,221 |   |   | 422,460 |   |   | 350,787 |   |
| Repayments                  under line of credit                                                                                                                                                                                               |   |   | (463,967 | ) |   | (405,277 | ) |   | (353,656 | ) |
| Borrowings                  of long-term debt                                                                                                                                                                                                  |   |   | 1,996 |   |   | 1,977 |   |   | 4,404 |   |
| Repayments                  of long-term debt                                                                                                                                                                                                  |   |   | (2,682 | ) |   | (2,913 | ) |   | (5,010 | ) |
| Repurchases                  of common stock                                                                                                                                                                                                   |   |   | - |   |   | (17,869 | ) |   | - |   |
| Stock                  compensation excess tax benefits                                                                                                                                                                                        |   |   | 70 |   |   | - |   |   | - |   |
| Exercise                  of stock options                                                                                                                                                                                                     |   |   | 300 |   |   | 378 |   |   | 85 |   |
|                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |
| Net                  cash used in financing activities                                                                                                                                                                                         |   |   | (18,062 | ) |   | (1,244 | ) |   | (3,390 | ) |
|                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |
| NET                  (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                                                                                                                                                                          |   |   | (89 | ) |   | (18,530 | ) |   | 16,595 |   |
|                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |
| CASH                  AND CASH EQUIVALENTS—Beginning                  of year                                                                                                                                                            |   |   | 1,129 |   |   | 19,659 |   |   | 3,064 |   |
|                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |
| CASH                  AND CASH EQUIVALENTS—End                  of year                                                                                                                                                                  |   | $ | 1,040 |   | $ | 1,129 |   | $ | 19,659 |   |
|                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL                  DISCLOSURES OF CASH FLOW INFORMATION—                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |
| Cash                  paid during the period for:                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| Interest                                                                                                                                                                                                                                       |   | $ | 1,481 |   | $ | 1,928 |   | $ | 1,774 |   |
| Income                  taxes                                                                                                                                                                                                                  |   | $ | 10,061 |   | $ | 7,190 |   | $ | 515 |   |
|                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |
| NONCASH                  INVESTING AND FINANCING ACTIVITIES—                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |
| Purchases                  of revenue equipment included in accounts payable                                                                                                                                                                   |   | $ | 14,276 |   | $ | - |   | $ | - |   |
|                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |
| See                  notes to consolidated financial statements.                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |

----

**P.A.M.          TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES **

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**YEARS        ENDED DECEMBER 31, 2006, 2005, AND 2004 **

| **1.** | **ACCOUNTING                  POLICIES** |
|--------|------------------------------------------|

***Description        of Business and Principles of Consolidation***

***Use        of Estimates***

***Cash        and Cash Equivalents***

***Bank        Overdrafts***

***Accounts        Receivable Other***

***Accounts        Receivable Allowance***

----

**Table            of Contents**

***Marketable        Equity Securities***

***Impairment        of Long-Lived Assets***

***Property        and Equipment***

| **Asset                  Class**                | **Estimated                  Asset Life** |
|-------------------------------------------------|-------------------------------------------|
|                                            |                                      |
| Service                  vehicles               | 3-5                  years                |
| Office                  furniture and equipment | 3-7                  years                |
| Revenue                  equipment              | 3-10                  years               |
| Structure                  and improvements     | 5-30                  years               |

***Prepaid        Tires***

***Reclassifications***

***Advertising        Expense***

***Repairs        and Maintenance***

***Goodwill***
*Goodwill        and Other Intangible Assets,*

----

**Table            of Contents**

***Self        Insurance Liability—***

***Income        Taxes***
*Accounting        for Income Taxes*

***Revenue        Recognition Policy***

***Share-Based        Compensation***
*Share-Based        Payments*
*Accounting        for Stock Issued to Employees*

***Earnings        Per Share***
*Earnings        per Share *

***Business        Segment and Concentrations of Credit Risk***

***Recent        Accounting Pronouncements***
*Employers’        Accounting for Defined Benefit Pension and Other Postretirement Plans — an        amendment of FASB Statements No. 87, 88, 106, and 132(R) *

----

**Table            of Contents**

*Fair        Value Measurements*

*Considering        the Effects of Prior Year Misstatements when Quantifying Misstatements in        Current Year Financial Statements *

*Accounting        for Uncertainty in Income Taxes*
*Accounting        for Income Taxes*

*Accounting        Changes and Error Corrections, a replacement of APB Opinion No. 20 and FASB        Statement No. 3*

*Share-Based        Payment*
*Accounting        for Stock-Based Compensation*
*Accounting        for Stock Issued to Employees*

----

**Table            of Contents**

| **2.** | **TRADE                  ACCOUNTS RECEIVABLE** |
|--------|------------------------------------------------|

|                                                 |   | **2006**                            |   | **2005** |   |
|------------------------------------------------------|--------|-------------------------------------|--------|----------|--------|
|                                                 |   | **(in                  thousands)** |   |
|                                                 |   |                                |   |     |   |
| Billed                                               |   | $                                   | 55,132 |     | $      | 56,953 |   |
| Unbilled                                             |   |                                | 7,794  |     |   | 10,510 |   |
| Allowance                  for doubtful accounts     |   |                                | (1,457 | )        |   | (2,030 | ) |
|                                                 |   |                                |   |     |   |   |   |
| Total                  accounts receivable—net |   | $                                   | 61,469 |     | $      | 65,433 |   |

|                                             |   | **2006**                            |   | **2005** |   | **2004** |   |
|--------------------------------------------------|--------|-------------------------------------|--------|----------|--------|----------|--------|
|                                             |   | **(in                  thousands)** |   |
|                                             |   |                                |   |     |   |     |   |
| Balance—beginning                  of year |   | $                                   | 2,030  |     | $      | 768      |   | $ | 834 |   |
| Provision                  for bad debts         |   |                                | 354    |     |   | 1,490    |   |   | 430 |   |
| Charge-offs                                      |   |                                | (960   | )        |   | (228     | )      |   | (701 | ) |
| Recoveries                                       |   |                                | 33     |     |   | -        |   |   | 205 |   |
| Balance—end                  of year       |   | $                                   | 1,457  |     | $      | 2,030    |   | $ | 768 |   |

| **3.** | **MARKETABLE                  EQUITY SECURITIES** |
|--------|---------------------------------------------------|

*Accounting        for Certain Investments in Debt and Equity Securities *

----

**Table            of Contents**

|                               |   | **2006**                            |   | **2005**       |   |
|------------------------------------|--------|-------------------------------------|--------|----------------|--------|
|                               |   | **(in                  thousands)** |   |
|                               |   |                                |   | **Unrealized** |   |   |   | **Unrealized** |   |
|                               |   | **Fair                  Value**     |   | **Losses**     |   | **Fair                  Value** |   | **Losses** |   |
|                               |   |                                |   |           |   |   |   |   |   |
| Equity                  securities |   | $                                   | 417    |           | $      | 12 |   | $ | 1,283 |   | $ | 219 |   |
|                               |   |                                |   |           |   |   |   |   |   |   |   |   |   |
| Totals                             |   | $                                   | 417    |           | $      | 12 |   | $ | 1,283 |   | $ | 219 |   |

| **4.** | **INTANGIBLE                  ASSETS** |
|--------|----------------------------------------|

*Goodwill        and Other Intangible Assets*

|                                         |   | **2006**                            |   | **2005** |   | **2004** |   |
|----------------------------------------------|--------|-------------------------------------|--------|----------|--------|----------|--------|
|                                         |   | **(in                  thousands)** |   |
|                                         |   |                                |   |     |   |     |   |
| Goodwill,                  beginning of year |   | $                                   | 15,413 |     | $      | 15,413   |   | $ | 15,413 |   |
| Goodwill                  acquired           |   |                                | -      |     |   | -        |   |   | - |   |
| Goodwill                  impairment         |   |                                | -      |     |   | -        |   |   | - |   |
|                                         |   |                                |   |     |   |     |   |   |   |   |
| Goodwill—end                  of year  |   | $                                   | 15,413 |     | $      | 15,413   |   | $ | 15,413 |   |

----

**Table            of Contents**

|                                                   |   | **2006**                            |   | **2005** |   |
|--------------------------------------------------------|--------|-------------------------------------|--------|----------|--------|
|                                                   |   | **(in                  thousands)** |   |
|                                                   |   |                                |   |     |   |
| Non-compete                  agreements, original cost |   | $                                   | 1,000  |     | $      | 1,300 |   |
| Accumulated                  amortization              |   |                                | (783   | )        |   | (883 | ) |
|                                                   |   |                                |   |     |   |   |   |
| Non-compete                  agreements—net      |   | $                                   | 217    |     | $      | 417 |   |

| **5.** | **ACCRUED                  EXPENSES AND OTHER                  LIABILITIES** |
|--------|------------------------------------------------------------------------------|

|                                                          |   | **2006**                            |   | **2005** |   |
|---------------------------------------------------------------|--------|-------------------------------------|--------|----------|--------|
|                                                          |   | **(in                  thousands)** |   |
|                                                          |   |                                |   |     |   |
| Payroll                                                       |   | $                                   | 1,779  |     | $      | 1,521 |   |
| Accrued                  vacation                             |   |                                | 1,827  |     |   | 1,632 |   |
| Taxes—other                  than income                |   |                                | 2,591  |     |   | 2,337 |   |
| Interest                                                      |   |                                | 80     |     |   | 86 |   |
| Driver                  escrows                               |   |                                | 939    |     |   | 873 |   |
| Self-insurance                  claims reserves               |   |                                | 2,778  |     |   | 4,058 |   |
|                                                          |   |                                |   |     |   |   |   |
| Total                  accrued expenses and other liabilities |   | $                                   | 9,994  |     | $      | 10,507 |   |

| **6.** | **CLAIMS                  LIABILITIES** |
|--------|-----------------------------------------|

----

**Table            of Contents**

| **7.** | **LONG-TERM                  DEBT** |
|--------|-------------------------------------|

|                                                                     |   | **2006**                            |   | **2005** |   |
|--------------------------------------------------------------------------|--------|-------------------------------------|--------|----------|--------|
|                                                                     |   | **(in                  thousands)** |   |
| Line                  of credit with a bank—due May 31, 2007, and  |   |                                |   |     |   |   |   |
| collateralized                  by accounts receivable (1)               |   | $                                   | 14,437 |     | $      | 17,183 |   |
| Line                  of credit with a bank—due June 30, 2008, and |   |                                |   |     |   |   |   |
| collateralized                  by revenue equipment (2)                 |   |                                | 5,000  |     |   | 20,000 |   |
| Note                  payable (3)                                        |   |                                | 2,510  |     |   | 3,208 |   |
| Other                  (4)                                               |   |                                | 1,173  |     |   | 1,161 |   |
| Total                  long-term debt                                    |   | $                                   | 23,120 |     |   | 41,552 |   |
|                                                                     |   |                                |   |     |   |   |   |
| Less                  current maturities                                 |   |                                | (1,915 | )        |   | (1,859 | ) |
|                                                                     |   |                                |   |     |   |   |   |
| Long-term                  debt—net of current maturities          |   | $                                   | 21,205 |     | $      | 39,693 |   |

| (1)   | Line                of credit agreement with a bank provides for maximum borrowings of                $20.0                million and contains certain restrictive covenants that must be maintained                by the Company on a consolidated basis. Borrowings on the line of                credit                are at an interest rate of LIBOR as of the first day of the month                plus                1.25% (6.60% at December 31, 2006). Monthly payments of interest are                required under this agreement. Also, under the terms of the agreement                the                Company must have (a) positive net income, (b) a debt to equity ratio                of                no more than 4:1, (c) a debt service coverage ratio of at least 1:1,                and                (d) maintain a tangible net worth of at least $40 million. The Company                was                in compliance with all provisions of the agreement at December 31,                2006.                The Company has the intent and ability to extend the terms of this                agreement for an additional one year period until May 31, 2008 and                accordingly has classified the debt as long-term. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)   | Line                of credit agreement with a bank provides for maximum borrowings of                $30.0                million and contains certain restrictive covenants that must be maintained                by the Company on a consolidated basis. Borrowings on the line of                credit                are at an interest rate of LIBOR as of the last day of the previous                month                plus 1.15% (6.50% at December 31, 2006). Monthly payments of interest                are                required under this agreement. Also, under the terms of the agreement                the                Company must have (a) positive net income, (b) a funded debt to EBITDA                ratio of less than 3:1, (c) a leverage ratio of less than 3:1, and                (d)                maintain a tangible net worth of at least $42 million increased by                (1) 50%                of cumulative quarterly net income and (2) proceeds of any public                stock                offering. The Company was in compliance with all provisions of the                agreement at December 31, 2006. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3)   | 6.0%                note to the former owner of an acquired entity with an original face                amount of $4,974,612, payable in monthly installments of $72,672                through                March 2010. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4)   | 6.0%                note to insurance premium finance company at December 31, 2006 with                an                original face amount of $1,995,916, payable in monthly installments                of                $170,927 through August 2007. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Table            of Contents**

|   |   | **(in                  thousands)** |   |
|--------|--------|-------------------------------------|--------|
|   |   |                                |   |
| 2007   |   | $                                   | 1,915  |   |
| 2008   |   |                                | 20,225 |   |
| 2009   |   |                                | 836    |   |
| 2010   |   |                                | 144    |   |
| 2011   |   |                                | -      |   |
|   |   |                                |   |   |
| Total  |   | $                                   | 23,120 |   |

| **8.** | **CAPITAL                  STOCK** |
|--------|------------------------------------|

----

**Table            of Contents**

| **9.** | **COMPREHENSIVE                  INCOME** |
|--------|-------------------------------------------|

|                                                           |   | **2006**                            |   | **2005** |   | **2004** |   |
|----------------------------------------------------------------|--------|-------------------------------------|--------|----------|--------|----------|--------|
|                                                           |   | **(in                  thousands)** |   |
|                                                           |   |                                |   |     |   |     |   |
| Net                  income                                    |   | $                                   | 17,964 |     | $      | 13,139   |   | $ | 10,588 |   |
|                                                           |   |                                |   |     |   |     |   |   |   |   |
| Other                  comprehensive income (loss):            |   |                                |   |     |   |     |   |   |   |   |
| Reclassification                  adjustment for losses on     |   |                                |   |     |   |     |   |   |   |   |
| derivative                  instruments included in net income |   |                                |   |     |   |     |   |   |   |   |
| accounted                  for as hedges, net of income taxes  |   |                                | 18     |     |   | 227      |   |   | 444 |   |
| Reclassification                  adjustment for unrealized    |   |                                |   |     |   |     |   |   |   |   |
| losses                  on marketable securities, included in  |   |                                |   |     |   |     |   |   |   |   |
| net                  income, net of income taxes               |   |                                | 53     |     |   | 91       |   |   | - |   |
| Change                  in fair value of interest rate         |   |                                |   |     |   |     |   |   |   |   |
| swap                  agreements, net of income taxes          |   |                                | 1      |     |   | 55       |   |   | 37 |   |
| Change                  in fair value of marketable            |   |                                |   |     |   |     |   |   |   |   |
| securities,                  net of income taxes               |   |                                | 1,349  |     |   | 197      |   |   | 506 |   |
|                                                           |   |                                |   |     |   |     |   |   |   |   |
| Total                  comprehensive income                    |   | $                                   | 19,385 |     | $      | 13,709   |   | $ | 11,575 |   |

| **10.** | **SIGNIFICANT                  CUSTOMERS AND INDUSTRY                  CONCENTRATION** |
|---------|----------------------------------------------------------------------------------------|

----

**Table            of Contents**

| **11.** | **FEDERAL                  AND STATE INCOME TAXES** |
|---------|-----------------------------------------------------|

|                                             |   | **2006**                            |   | **2005**      |   |
|--------------------------------------------------|--------|-------------------------------------|--------|---------------|--------|
|                                             |   | **(in                  thousands)** |   |
|                                             |   | **Current**                         |   | **Long-Term** |   | **Current** |   | **Long-Term** |   |
|                                             |   |                                |   |          |   |   |   |   |   |
| Deferred                  tax liabilities:       |   |                                |   |          |   |   |   |   |   |   |   |   |   |
| Property                  and equipment          |   | $                                   | -      |          | $      | 49,731 |   | $ | - |   | $ | 47,735 |   |
| Unrealized                  gains on securities  |   |                                | 2,113  |          |   | - |   |   | 1,190 |   |   | - |   |
| Prepaid                  expenses and other      |   |                                | 5,665  |          |   | 2,920 |   |   | 8,089 |   |   | 30 |   |
|                                             |   |                                |   |          |   |   |   |   |   |   |   |   |   |
| Total                  deferred tax liabilities  |   |                                | 7,778  |          |   | 52,651 |   |   | 9,279 |   |   | 47,765 |   |
|                                             |   |                                |   |          |   |   |   |   |   |   |   |   |   |
| Deferred                  tax assets:            |   |                                |   |          |   |   |   |   |   |   |   |   |   |
| Allowance                  for doubtful accounts |   |                                | 553    |          |   | - |   |   | 520 |   |   | - |   |
| Compensated                  absences            |   |                                | 564    |          |   | - |   |   | 496 |   |   | - |   |
| Self-insurance                  allowances       |   |                                | 664    |          |   | - |   |   | 1,022 |   |   | - |   |
| Hedging                  derivative              |   |                                | -      |          |   | - |   |   | 13 |   |   | - |   |
| Share-based                  compensation        |   |                                | -      |          |   | 242 |   |   | - |   |   | 48 |   |
| Bonus                  compensation              |   |                                | 235    |          |   | - |   |   | 70 |   |   | - |   |
| Non-competition                  agreement       |   |                                | -      |          |   | 507 |   |   | - |   |   | 520 |   |
| Other                                            |   |                                | 104    |          |   | - |   |   | 24 |   |   | - |   |
|                                             |   |                                |   |          |   |   |   |   |   |   |   |   |   |
| Total                  deferred tax assets       |   |                                | 2,120  |          |   | 749 |   |   | 2,145 |   |   | 568 |   |
|                                             |   |                                |   |          |   |   |   |   |   |   |   |   |   |
| Net                  deferred tax liability      |   | $                                   | 5,658  |          | $      | 51,902 |   | $ | 7,134 |   | $ | 47,197 |   |

|                                          |   | **2006**                            |   | **2005**    |   | **2004**   |   |
|-----------------------------------------------|--------|-------------------------------------|--------|-------------|--------|------------|--------|
|                                          |   | **(in                  thousands)** |   |
|                                          |   | **Amount**                          |   | **Percent** |   | **Amount** |   | **Percent** |   | **Amount** |   | **Percent** |   |
|                                          |   |                                |   |        |   |       |   |   |   |   |   |   |   |
| Income                  tax at the            |   |                                |   |        |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| statutory                  federal rate       |   | $                                   | 10,513 |        |   | 35.0       |   | $ | 7,743 |   |   | 35.0 |   | $ | 6,083 |   |   | 34.0 |   |
| Nondeductible                  expense        |   |                                | 378    |        |   | 1.3        |   |   | 450 |   |   | 2.0 |   |   | 484 |   |   | 2.7 |   |
| State                  income taxes—net |   |                                |   |        |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| of                  federal benefit           |   |                                | 1,182  |        |   | 3.9        |   |   | 790 |   |   | 3.6 |   |   | 737 |   |   | 4.1 |   |
| Total                  income taxes           |   | $                                   | 12,073 |        |   | 40.2       |   | $ | 8,983 |   |   | 40.6 |   | $ | 7,304 |   |   | 40.8 |   |

----

**Table            of Contents**

|                                      |   | **2006**                            |   | **2005** |   | **2004** |   |
|-------------------------------------------|--------|-------------------------------------|--------|----------|--------|----------|--------|
|                                      |   | **(in                  thousands)** |   |
|                                      |   |                                |   |     |   |     |   |
| **Current:**                              |   |                                |   |     |   |     |   |   |   |   |
| Federal                                   |   | $                                   | 8,397  |     | $      | 6,422    |   | $ | - |   |
| State                                     |   |                                | 1,371  |     |   | 1,150    |   |   | 479 |   |
|                                      |   |                                | 9,768  |     |   | 7,572    |   |   | 479 |   |
| **Deferred:**                             |   |                                |   |     |   |     |   |   |   |   |
| Federal                                   |   |                                | 1,768  |     |   | 876      |   |   | 6,076 |   |
| State                                     |   |                                | 537    |     |   | 535      |   |   | 749 |   |
|                                      |   |                                | 2,305  |     |   | 1,411    |   |   | 6,825 |   |
|                                      |   |                                |   |     |   |     |   |   |   |   |
| Total                  income tax expense |   | $                                   | 12,073 |     | $      | 8,983    |   | $ | 7,304 |   |

| **12.** | **SHARE-BASED                  COMPENSATION** |
|---------|-----------------------------------------------|

----

**Table            of Contents**

|                                                          |   | **Shares****Under****Option** |    | **Weighted-****Average****Exercise                  Price** |   |
|---------------------------------------------------------------|--------|-------------------------------|---------|-------------------------------------------------------------|--------|
|                                                          |   |                          |    |                                                        |   |
| Outstanding—January                  1, 2004:           |   |                          | 348,500 |                                                        | $      | 20.85 |   |
| Granted                                                       |   |                          | 14,000  |                                                        |   | 16.99 |   |
| Exercised                                                     |   |                          | (9,000  | )                                                           |   | 9.39 |   |
| Canceled                                                      |   |                          | (40,000 | )                                                           |   | 23.22 |   |
|                                                          |   |                          |    |                                                        |   |   |   |
| Outstanding—December                  31, 2004:         |   |                          | 313,500 |                                                        | $      | 20.70 |   |
| Granted                                                       |   |                          | 14,000  |                                                        |   | 18.27 |   |
| Exercised                                                     |   |                          | (41,000 | )                                                           |   | 9.21 |   |
|                                                          |   |                          |    |                                                        |   |   |   |
| Outstanding—December                  31, 2005:         |   |                          | 286,500 |                                                        | $      | 22.22 |   |
| Granted                                                       |   |                          | 16,000  |                                                        |   | 26.73 |   |
| Exercised                                                     |   |                          | (18,000 | )                                                           |   | 16.67 |   |
|                                                          |   |                          |    |                                                        |   |   |   |
| Outstanding—December                  31, 2006:         |   |                          | 284,500 |                                                        | $      | 22.83 |   |
|                                                          |   |                          |    |                                                        |   |   |   |
| Options                  exercisable—December 31, 2006: |   |                          | 202,000 |                                                        | $      | 22.71 |   |

*Share-Based        Payment*

*Accounting        for Stock Issued to Employees*

|                                                                    |   | **2005**                                                   |   | **2004** |   |
|-------------------------------------------------------------------------|--------|------------------------------------------------------------|--------|----------|--------|
|                                                                    |   | **(in                  thousands, except per share data)** |   |
|                                                                    |   |                                                       |   |     |   |
| Net                  income—as reported                           |   | $                                                          | 13,139 |     | $      | 10,588 |   |
| Deduct                  total stock-based employee compensation expense |   |                                                       |   |     |   |   |   |
| determined                  under fair value based method for           |   |                                                       |   |     |   |   |   |
| all                  awards—net of related tax effects            |   |                                                       | (296   | )        |   | (292 | ) |
|                                                                    |   |                                                       |   |     |   |   |   |
| Pro                  forma net income                                   |   | $                                                          | 12,843 |     | $      | 10,296 |   |
| Earnings                  per share:                                    |   |                                                       |   |     |   |   |   |
| Basic—as                  reported                                |   | $                                                          | 1.20   |     | $      | 0.94 |   |
| Basic—pro                  forma                                  |   | $                                                          | 1.17   |     | $      | 0.91 |   |
|                                                                    |   |                                                       |   |     |   |   |   |
| Diluted—as                  reported                              |   | $                                                          | 1.20   |     | $      | 0.94 |   |
| Diluted—pro                  forma                                |   | $                                                          | 1.17   |     | $      | 0.91 |   |

----

**Table            of Contents**

|                                   | **2006**                                 | **2005**                 | **2004**                 |
|----------------------------------------|------------------------------------------|--------------------------|--------------------------|
|                                   |                                     |                     |                     |
| Dividend                  yield        | 0%                                       | 0%                       | 0%                       |
| Volatility                  range      | 33.34%—38.54%                      | 33.86%—38.54%      | 35.37%—38.54%      |
| Risk-free                  rate range  | 4.38%—5.02%                        | 4.08%—4.38%        | 2.70%—4.38%        |
| Expected                  life         | 2.5                  years—5 years | 5                  years | 5                  years |
| Fair                  value of options | $6.93—$9.45                        | $6.73—$9.45        | $6.62—$9.45        |

|                                                                                                                                                                                                                                                                                                                                                                                                           |   | **Number                  of Options** |    | **Weighted-                  Average Exercise Price** |   | **Weighted-                  Average Remaining Contractual Term** |   | **Aggregate                  Intrinsic Value*** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|---------|-------------------------------------------------------|--------|-------------------------------------------------------------------|--------|-------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                   |    |                                                  |   | (in                  years)                                       |   |                                            |   |
| Outstanding                  at January 1, 2006                                                                                                                                                                                                                                                                                                                                                                |   |                                   | 286,500 |                                                  | $      | 22.22                                                             |   |                                            |   |   |   |   |   |
| Granted                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                   | 16,000  |                                                  |   | 26.73                                                             |   |                                            |   |   |   |   |   |
| Exercised                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                   | (18,000 | )                                                     |   | 16.67                                                             |   |                                            |   |   |   |   |   |
| Canceled/forfeited/expired                                                                                                                                                                                                                                                                                                                                                                                     |   |                                   | -       |                                                  |   | -                                                                 |   |                                            |   |   |   |   |   |
| Outstanding                  at December 31, 2006                                                                                                                                                                                                                                                                                                                                                              |   |                                   | 284,500 |                                                  | $      | 22.83                                                             |   |                                            | 5.0    |   | $ | 116,910 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                   |    |                                                  |   |                                                              |   |                                            |   |   |   |   |   |
| Fully                  vested and exercisable                  at December 31, 2006                                                                                                                                                                                                                                                                                                                            |   |                                   | 202,000 |                                                  | $      | 22.71                                                             |   |                                            | 4.8    |   | $ | 111,560 |   |
| ___________________________                                                                                                                                                                                                                                                                                                                                                                                    |   |                                   |    |                                                  |   |                                                              |   |                                            |   |   |   |   |   |
| *                  The intrinsic value of a stock option is the amount by which the                  market                  value of the underlying stock exceeds the exercise price of the                  option.                  The per share market value of our common stock, as determined by                  the                  closing price on December 31, 2006, was                  $22.02. |

|                                            |   | **Number                  of Options** |    | **Weighted-                  Average Grant Date Fair Value** |   |
|-------------------------------------------------|--------|----------------------------------------|---------|--------------------------------------------------------------|--------|
|                                            |   |                                   |    |                                                         |   |
| Nonvested                  at January 1, 2006   |   |                                   | 125,000 |                                                         | $      | 9.43 |   |
| Granted                                         |   |                                   | 16,000  |                                                         |   | 6.93 |   |
| Vested                                          |   |                                   | (58,500 | )                                                            |   | 8.74 |   |
| Canceled/forfeited/expired                      |   |                                   | -       |                                                         |   | - |   |
|                                            |   |                                   |    |                                                         |   |   |   |
| Nonvested                  at December 31, 2006 |   |                                   | 82,500  |                                                         | $      | 9.43 |   |
|                                            |   |                                   |    |                                                         |   |   |   |

----

**Table            of Contents**

| **Exercise                  Price** |   | **Options                  Outstanding** |   | **Weighted-Average                  Remaining Contractual Term** |   | **Options                  Exercisable** |
|-------------------------------------|--------|------------------------------------------|--------|------------------------------------------------------------------|--------|------------------------------------------|
|                                |   |                                     |   | (in                  years)                                      |   |                                     |
| $16.99                              |   | 8,000                                    |   | 2.2                                                              |   | 8,000                                    |
| $18.27                              |   | 12,000                                   |   | 3.2                                                              |   | 12,000                                   |
| $19.88                              |   | 12,500                                   |   | 1.8                                                              |   | 10,000                                   |
| $20.79                              |   | 4,000                                    |   | 0.2                                                              |   | 4,000                                    |
| $22.68                              |   | 12,000                                   |   | 1.2                                                              |   | 12,000                                   |
| $23.22                              |   | 220,000                                  |   | 5.7                                                              |   | 140,000                                  |
| $26.73                              |   | 16,000                                   |   | 4.5                                                              |   | 16,000                                   |
|                                |   | 284,500                                  |   | 5.0                                                              |   | 202,000                                  |

----

**Table            of Contents**

| **13.** | **EARNINGS                  PER SHARE** |
|---------|-----------------------------------------|

|                                                                |   | **For                  the Year Ended December 31,**       |   |
|---------------------------------------------------------------------|--------|------------------------------------------------------------|--------|
|                                                                |   | **2006**                                                   |   | **2005** |   | **2004** |   |
|                                                                |   | **(in                  thousands, except per share data)** |   |
|                                                                |   |                                                       |   |   |   |   |   |
| Net                  income                                         |   | $                                                          | 17,964 |   | $ | 13,139 |   | $ | 10,588 |   |
|                                                                |   |                                                       |   |   |   |   |   |   |   |   |
| Basic                  weighted average common shares outstanding   |   |                                                       | 10,296 |   |   | 10,966 |   |   | 11,298 |   |
| Dilutive                  effect of common stock equivalents        |   |                                                       | 6      |   |   | 10 |   |   | 26 |   |
|                                                                |   |                                                       |   |   |   |   |   |   |   |   |
| Diluted                  weighted average common shares outstanding |   |                                                       | 10,302 |   |   | 10,976 |   |   | 11,324 |   |
|                                                                |   |                                                       |   |   |   |   |   |   |   |   |
| Basic                  earnings per share                           |   | $                                                          | 1.74   |   | $ | 1.20 |   | $ | 0.94 |   |
|                                                                |   |                                                       |   |   |   |   |   |   |   |   |
| Diluted                  earnings per share                         |   | $                                                          | 1.74   |   | $ | 1.20 |   | $ | 0.94 |   |

| **14.** | **PROFIT                  SHARING PLAN** |
|---------|------------------------------------------|

| **15.** | **COMMITMENTS                  AND CONTINGENCIES** |
|---------|----------------------------------------------------|

----

**Table            of Contents**

| 2007   |   | $      | 559,815   |   |
|--------|--------|--------|-----------|--------|
| 2008   |   |   | 377,675   |   |
| 2009   |   |   | 255,761   |   |
| 2010   |   |   | 165,000   |   |
| 2011   |   |   | -         |   |
|   |   |   |      |   |
| Total  |   | $      | 1,358,251 |   |

| **16.** | **FAIR                  VALUE OF FINANCIAL                  INSTRUMENTS** |
|---------|---------------------------------------------------------------------------|

*Disclosure        About Fair Value of Financial Instruments*

| **17.** | **DERIVATIVES                  AND HEDGING ACTIVITIES** |
|---------|---------------------------------------------------------|

----

**Table            of Contents**

| **18.** | **RELATED                  PARTY TRANSACTIONS** |
|---------|-------------------------------------------------|

----

**Table            of Contents**

| **19.** | **QUARTERLY                  RESULTS OF OPERATIONS                  (UNAUDITED)** |
|---------|-----------------------------------------------------------------------------------|

|                                                |   | **2006**                                                   |    |
|-----------------------------------------------------|--------|------------------------------------------------------------|---------|
|                                                |   | **Three                  Months Ended**                    |    |
|                                                |   | **March                  31**                              |    | **June                  30** |   | **September                  30** |   | **December                  31** |   |
|                                                |   | **(in                  thousands, except per share data)** |    |
|                                                |   |                                                       |    |   |   |   |   |   |   |
| Operating                  revenues                 |   | $                                                          | 100,525 |   | $ | 103,365 |   | $ | 99,874 |   | $ | 96,505 |   |
| Operating                  expenses                 |   |                                                       | 91,473  |   |   | 94,375 |   |   | 94,202 |   |   | 89,154 |   |
|                                                |   |                                                       |    |   |   |   |   |   |   |   |   |   |   |
| Operating                  income                   |   |                                                       | 9,052   |   |   | 8,990 |   |   | 5,672 |   |   | 7,351 |   |
| Non-operating                  income               |   |                                                       | 57      |   |   | 116 |   |   | 140 |   |   | 135 |   |
| Interest                  expense                   |   |                                                       | 465     |   |   | 353 |   |   | 300 |   |   | 357 |   |
| Income                  taxes                       |   |                                                       | 3,461   |   |   | 3,512 |   |   | 2,244 |   |   | 2,857 |   |
|                                                |   |                                                       |    |   |   |   |   |   |   |   |   |   |   |
| Net                  income                         |   | $                                                          | 5,183   |   | $ | 5,241 |   | $ | 3,268 |   | $ | 4,272 |   |
|                                                |   |                                                       |    |   |   |   |   |   |   |   |   |   |   |
| Net                  income per common share:       |   |                                                       |    |   |   |   |   |   |   |   |   |   |   |
| Basic                                               |   | $                                                          | 0.50    |   | $ | 0.51 |   | $ | 0.32 |   | $ | 0.41 |   |
| Diluted                                             |   | $                                                          | 0.50    |   | $ | 0.51 |   | $ | 0.32 |   | $ | 0.41 |   |
|                                                |   |                                                       |    |   |   |   |   |   |   |   |   |   |   |
| Average                  common shares outstanding: |   |                                                       |    |   |   |   |   |   |   |   |   |   |   |
| Basic                                               |   |                                                       | 10,288  |   |   | 10,293 |   |   | 10,301 |   |   | 10,303 |   |
| Diluted                                             |   |                                                       | 10,288  |   |   | 10,301 |   |   | 10,309 |   |   | 10,308 |   |

|                                                |   | **2005**                                                   |   |
|-----------------------------------------------------|--------|------------------------------------------------------------|--------|
|                                                |   | **Three                  Months Ended**                    |   |
|                                                |   | **March                  31**                              |   | **June                  30** |   | **September                  30** |   | **December                  31** |   |
|                                                |   | **(in                  thousands, except per share data)** |   |
|                                                |   |                                                       |   |   |   |   |   |   |   |
| Operating                  revenues                 |   | $                                                          | 86,192 |   | $ | 91,027 |   | $ | 88,484 |   | $ | 95,177 |   |
| Operating                  expenses                 |   |                                                       | 81,034 |   |   | 84,479 |   |   | 84,471 |   |   | 87,370 |   |
|                                                |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Operating                  income                   |   |                                                       | 5,158  |   |   | 6,548 |   |   | 4,013 |   |   | 7,807 |   |
| Non-operating                  income               |   |                                                       | 191    |   |   | 108 |   |   | 155 |   |   | 23 |   |
| Interest                  expense                   |   |                                                       | 445    |   |   | 474 |   |   | 422 |   |   | 540 |   |
| Income                  taxes                       |   |                                                       | 2,001  |   |   | 2,502 |   |   | 1,533 |   |   | 2,947 |   |
|                                                |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income                         |   | $                                                          | 2,903  |   | $ | 3,680 |   | $ | 2,213 |   | $ | 4,343 |   |
|                                                |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income per common share:       |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                               |   | $                                                          | 0.26   |   | $ | 0.33 |   | $ | 0.20 |   | $ | 0.41 |   |
| Diluted                                             |   | $                                                          | 0.26   |   | $ | 0.33 |   | $ | 0.20 |   | $ | 0.41 |   |
|                                                |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Average                  common shares outstanding: |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                               |   |                                                       | 11,305 |   |   | 11,114 |   |   | 10,818 |   |   | 10,634 |   |
| Diluted                                             |   |                                                       | 11,327 |   |   | 11,130 |   |   | 10,821 |   |   | 10,636 |   |
|                                                |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |

----

**Table            of Contents**

**Item        9. Changes in and Disagreements with Accountants        on Accounting and Financial Disclosure.**

**Item        9A. Controls and Procedures.**

**Conclusion        Regarding the Effectiveness of Disclosure Controls and        Procedures**

**Management's        Report on Internal Control Over Financial Reporting**

**Changes        in Internal Control Over Financial Reporting**

**Report        of Independent Registered Public Accounting Firm**

*Internal        Control-Integrated Framework *

----

**Table            of Contents**

*Internal        Control-Integrated Framework*
*Internal        Control-Integrated Framework*

**Item        9B. Other Information.**

----

**Table            of Contents**

**PART        III**

**Item        10. Directors, Executive Officers and Corporate        Governance.**

**Item        11. Executive        Compensation.**

**Item        12. Security Ownership of Certain Beneficial Owners        and Management and Related Stockholder Matters.**

**Equity        Compensation Plan Information**

|  Plan                  Category                                        |   | Number                  of securities to be issued upon exercise of outstanding options,                  warrants                  and rights |    | Weighted-average                  exercise price of outstanding options, warrants and rights |   | Number                  of securities remaining available for future issuance under equity                  compensation plans |   |
|-----------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|---------|----------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------|--------|
| Equity                  Compensation Plans approved by Security Holders     |   |                                                                                                                                           | 284,500 |                                                                                         | $      | 22.83                                                                                                                          |   |   | 734,000 |   |
|                                                                        |   |                                                                                                                                           |    |                                                                                         |   |                                                                                                                           |   |   |   |   |
| Equity                  Compensation Plans not approved by Security Holders |   |                                                                                                                                           | -0-     |                                                                                         |   | -0-                                                                                                                            |   |   | -0- |   |
|                                                                        |   |                                                                                                                                           |    |                                                                                         |   |                                                                                                                           |   |   |   |   |
| Total                                                                       |   |                                                                                                                                           | 284,500 |                                                                                         | $      | 22.83                                                                                                                          |   |   | 734,000 |   |

----

**Table            of Contents**

**Item        13. Certain Relationships and Related Transactions,        and Director Independence.**

**Item        14. Principal Accounting Fees and        Services.**

----

**Table            of Contents**

**PART            IV**

**Item            15. Exhibits, Financial Statement            Schedules.**

| **Exhibit                      #**  |   | **Description                      of Exhibit**                                                                                                                                                                                                            |
|------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *3.1                                     |   | Amended                      and Restated Certificate of Incorporation of the Registrant                      (Exh. 3.1,                      3/31/02 10-Q)                                                                                                          |
|                                     |   |                                                                                                                                                                                                                                                                 |
| *3.2                                     |   | Amended                      and Restated By-Laws of the Registrant (Exh. 3.2, 1/22/07                      8-K)                                                                                                                                                     |
|                                     |   |                                                                                                                                                                                                                                                                 |
| *4.1                                     |   | Specimen                      Stock Certificate (Exh. 4.1, 1986 S-1)                                                                                                                                                                                                 |
|                                     |   |                                                                                                                                                                                                                                                                 |
| *4.2                                     |   | Loan                      Agreement dated July 26, 1994 among First Tennessee Bank National                      Association, Registrant and P.A.M. Transport, Inc. together                      with                      Promissory Note (Exh. 4.1, 6/30/94 10-Q) |
|                                     |   |                                                                                                                                                                                                                                                                 |
| *4.2.1                                   |   | Security                      Agreement dated July 26, 1994 between First Tennessee Bank                      National                      Association and P.A.M. Transport, Inc. (Exh. 4.2, 6/30/94                      10-Q)                                     |

----

**Table                of Contents**

|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *4.3    |   | First                      Amendment to Loan Agreement dated June 27, 1995 by and among                      P.A.M.                      Transport, Inc., First Tennessee Bank National Association                      and P.A.M.                      Transportation Services, Inc., together with Promissory Note                      in the                      principal amount of $2,500,000 (Exh. 4.1.1, 6/30/95                      10-Q) |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *4.3.1  |   | First                      Amendment to Security Agreement dated June 28, 1995 by and                      between P.A.M.                      Transport, Inc. and First Tennessee Bank National Association                      (Exh. 4.2.2,                      6/30/95 10-Q)                                                                                                                                                                     |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *4.3.2  |   | Security                      Agreement dated June 27, 1995 by and between Choctaw Express,                      Inc. and                      First Tennessee Bank National Association (Exh. 4.1.3, 6/30/95                      10-Q)                                                                                                                                                                                                              |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *4.3.3  |   | Guaranty                      Agreement of P.A.M. Transportation Services, Inc. dated June                      27, 1995 in                      favor of First Tennessee Bank National Association respecting                      $10,000,000                      line of credit (Exh. 4.1.4, 6/30/95 10-Q)                                                                                                                                        |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *4.4    |   | Second                      Amendment to Loan Agreement dated July 3, 1996 by P.A.M. Transport,                      Inc.,                      First Tennessee Bank National Association and P.A.M. Transportation                      Services, Inc., together with Promissory Note in the principal                      amount of                      $5,000,000 (Exh. 4.1.1, 9/30/96 10-Q)                                                     |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *4.4.1  |   | Second                      Amendment to Security Agreement dated July 3, 1996 by and between                      P.A.M.                      Transport, Inc. and First Tennessee National Bank Association                      (Exh. 4.1.2,                      9/30/96 10-Q)                                                                                                                                                                     |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *4.4.2  |   | First                      Amendment to Security Agreement dated July 3, 1996 by and between                      Choctaw                      Express, Inc. and First Tennessee Bank National Association                      (Exh. 4.1.3,                      9/30/96 10-Q)                                                                                                                                                                       |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *4.4.3  |   | Security                      Agreement dated July 3, 1996 by and between Allen Freight Services,                      Inc.                      and First Tennessee Bank National Association (Exh. 4.1.4,                      9/30/96                      10-Q)                                                                                                                                                                                   |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *4.5.1  |   | Loan                      Agreement dated as of November 22, 2000 by and between P.A.M.                      Transport,                      Inc. and SunTrust Bank (Exh. 4.5.1, 2001 10-K)                                                                                                                                                                                                                                                           |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *4.5.2  |   | Revolving                      Credit Note dated November 22, 2000 (Exh. 4.5.2, 2001                      10-K)                                                                                                                                                                                                                                                                                                                                       |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *4.5.3  |   | Security                      Agreement by and between P.A.M. Transport, Inc. and SunTrust                      Bank (Exh.                      4.5.3, 2001 10-K)                                                                                                                                                                                                                                                                                     |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *4.5.4  |   | First                      Amendment to Loan Agreement, Revolving Credit Note and Security                      Deposit                      (Exh. 4.5.4, 2001 10-K)                                                                                                                                                                                                                                                                                  |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *10.1   | (1)    | Employment                      Agreement between the Registrant and Robert W. Weaver, effective                      July 1,                      2002 (Exh. 10.1.1, 2001 10-K)                                                                                                                                                                                                                                                                      |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *10.1.1 | (1)    | Employment                      Agreement between the Registrant and Robert W. Weaver, effective                      July 1,                      2004 (Exh. 10.1, 1/25/2005 8-K)                                                                                                                                                                                                                                                                    |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *10.1.2 | (1)    | New                      Employment Agreement between the Registrant and Robert W. Weaver,                      dated                      July 10, 2006 (Exh. 10.1, 7/28/2006 8-K)                                                                                                                                                                                                                                                                   |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *10.2   | (1)    | Employment                      Agreement between the Registrant and W. Clif Lawson, dated                      January 1, 2002                      (Exh. 10.2, 2001 10-K)                                                                                                                                                                                                                                                                           |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *10.2.1 | (1)    | Memo                      exercising the Company's option to extend W. Clif Lawson's                      Employment                      Agreement by one year (Exh. 10.2.1, 2004 10-K)                                                                                                                                                                                                                                                              |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *10.2.2 | (1)    | New                      Employment Agreement between the Registrant and W. Clif Lawson,                      dated June                      1, 2006 (Exh. 10.2, 7/28/2006 8-K)                                                                                                                                                                                                                                                                      |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *10.3   | (1)    | Employment                      Agreement between the Registrant and Larry J. Goddard, dated                      January 1,                      2002 (Exh. 10.3, 2001 10-K)                                                                                                                                                                                                                                                                         |

----

**Table                of Contents**

|                                                                                                   |   |                                                                                                                                                                                                                                                                       |
|--------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *10.3.1                                                                                                | (1)    | Memo                      exercising the Company's option to extend Larry J. Goddard's                      Employment                      Agreement by one year (Exh. 10.3.1, 2004 10-K)                                                                                 |
|                                                                                                   |   |                                                                                                                                                                                                                                                                       |
| *10.3.2                                                                                                | (1)    | New                      Employment Agreement between the Registrant and Larry J. Goddard,                      dated                      June 1, 2006 (Exh. 10.3, 7/28/2006 8-K)                                                                                         |
|                                                                                                   |   |                                                                                                                                                                                                                                                                       |
| *10.4                                                                                                  | (1)    | 1995                      Stock Option Plan, as Amended and Restated (Exh. 4.1, 6/11/99                      S-8)                                                                                                                                                          |
|                                                                                                   |   |                                                                                                                                                                                                                                                                       |
| *10.4.1                                                                                                | (1)    | Amendment                      to 1995 Stock Option Plan (Exh. 10.1, 3/07/2005 8-K)                                                                                                                                                                                        |
|                                                                                                   |   |                                                                                                                                                                                                                                                                       |
| *10.4.2                                                                                                | (1)    | 2006                      Stock Option Plan (Exh. 10.1, 5/31/2006 8-K)                                                                                                                                                                                                     |
|                                                                                                   |   |                                                                                                                                                                                                                                                                       |
| *10.5                                                                                                  |   | Interest                      rate swap agreement, dated March 1, 2001 (Exh. 10.5, 2001                      10-K)                                                                                                                                                         |
|                                                                                                   |   |                                                                                                                                                                                                                                                                       |
| *10.6                                                                                                  |   | Interest                      rate swap agreement dated June 1, 2001 (Exh. 10.6, 2001                      10-K)                                                                                                                                                           |
|                                                                                                   |   |                                                                                                                                                                                                                                                                       |
| *10.7                                                                                                  | (1)    | Employee                      Non-Qualified Stock Option Agreement (Exh. 10.1, 9/30/2004                      10-Q)                                                                                                                                                        |
|                                                                                                   |   |                                                                                                                                                                                                                                                                       |
| *10.8                                                                                                  | (1)    | Director                      Non-Qualified Stock Option Agreement (Exh. 10.2, 9/30/2004                      10-Q)                                                                                                                                                        |
|                                                                                                   |   |                                                                                                                                                                                                                                                                       |
| *10.8.1                                                                                                | (1)    | Form                      of Non-Qualified Stock option Agreement for Non-Employee Director                      stock                      options that are granted under the 2006 Stock Option Plan (Exh.                      10.2,                      5/31/2006 8-K) |
|                                                                                                   |   |                                                                                                                                                                                                                                                                       |
| *10.9                                                                                                  | (1)    | Executive                      Officers and Certain Other Employees Incentive Compensation                      Plan, as                      amended (Exh. 10.3, 9/30/2004 10-Q)                                                                                          |
|                                                                                                   |   |                                                                                                                                                                                                                                                                       |
| *10.10                                                                                                 | (1)    | Extension                      of Executive Officers and Certain Other Employees Incentive                      Compensation                      Plan, as amended (Exh. 10.10, 2005 10-K)                                                                                 |
|                                                                                                   |   |                                                                                                                                                                                                                                                                       |
| *10.11                                                                                                 | (1)    | Executive                      Incentive Plan (Exh. 10.2, 6/30/2006 10-Q)                                                                                                                                                                                                  |
|                                                                                                   |   |                                                                                                                                                                                                                                                                       |
| 21.1                                                                                                   |   | Subsidiaries                      of the                      Registrant                                                                                                                                                                                                   |
|                                                                                                   |   |                                                                                                                                                                                                                                                                       |
| 23.1                                                                                                   |   | Consent                      of Grant Thornton                      LLP                                                                                                                                                                                                    |
|                                                                                                   |   |                                                                                                                                                                                                                                                                       |
| 23.2                                                                                                   |   | Consent                      of Deloitte & Touche                      LLP                                                                                                                                                                                             |
|                                                                                                   |   |                                                                                                                                                                                                                                                                       |
| 31.1                                                                                                   |   | Rule                      13a-14(a) Certification of Principal                      Executive Officer                                                                                                                                                                      |
|                                                                                                   |   |                                                                                                                                                                                                                                                                       |
| 31.2                                                                                                   |   | Rule                      13a-14(a) Certification of Principal                      Financial Officer                                                                                                                                                                      |
|                                                                                                   |   |                                                                                                                                                                                                                                                                       |
| 32.1                                                                                                   |   | Section                      1350 Certification of Chief Executive                      Officer                                                                                                                                                                            |
|                                                                                                   |   |                                                                                                                                                                                                                                                                       |
| 32.2                                                                                                   |   | Section                      1350 Certification of Chief Financial                      Officer                                                                                                                                                                            |
|                                                                                                   |   |                                                                                                                                                                                                                                                                       |
| (1)                      Management contract or compensatory plan or                      arrangement. |

----

**Table                  of Contents**

**SIGNATURES**

|                                                                                                                                                                                                                                                                                                   |   | P.A.M.                    TRANSPORTATION SERVICES, INC.             |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                   |   |                                                                |   |
| Dated:                    March 14, 2007                                                                                                                                                                                                                                                               | By:    | /s/                    Robert W. Weaver                             |   |
|                                                                                                                                                                                                                                                                                                   |   | ROBERT                    W. WEAVER                                 |   |
|                                                                                                                                                                                                                                                                                                   |   | President                    and Chief Executive Officer            |   |
|                                                                                                                                                                                                                                                                                                   |   | (principal                    executive officer)                    |   |
|                                                                                                                                                                                                                                                                                                   |   |                                                                |   |
| Dated:                    March 14, 2007                                                                                                                                                                                                                                                               | By:    | /s/                    Larry J. Goddard                             |   |
|                                                                                                                                                                                                                                                                                                   |   | LARRY                    J. GODDARD                                 |   |
|                                                                                                                                                                                                                                                                                                   |   | Vice                    President-Finance, Chief Financial Officer, |   |
|                                                                                                                                                                                                                                                                                                   |   | Secretary                    and Treasurer                          |   |
|                                                                                                                                                                                                                                                                                                   |   | (principal                    financial and accounting officer)     |   |
|                                                                                                                                                                                                                                                                                                   |   |                                                                |   |
| Pursuant                    to the requirements of the Securities Exchange Act of 1934, this                    report                    has been signed by the following persons on behalf of the registrant                    and                    in the capacities and on the dates indicated: |   |
|                                                                                                                                                                                                                                                                                                   |   |                                                                |   |
|                                                                                                                                                                                                                                                                                                   |   |                                                                |   |
| Dated:                    March 14, 2007                                                                                                                                                                                                                                                               | By:    | /s/                    Frederick P. Calderone                       |   |
|                                                                                                                                                                                                                                                                                                   |   | FREDERICK                    P. CALDERONE, Director                 |   |
|                                                                                                                                                                                                                                                                                                   |   |                                                                |   |
| Dated:                    March 14, 2007                                                                                                                                                                                                                                                               | By:    | /s/                    Frank L. Conner                              |   |
|                                                                                                                                                                                                                                                                                                   |   | FRANK                    L. CONNER, Director                        |   |
|                                                                                                                                                                                                                                                                                                   |   |                                                                |   |
| Dated:                    March 14, 2007                                                                                                                                                                                                                                                               | By:    | /s/                    Thomas H. Cooke                              |   |
|                                                                                                                                                                                                                                                                                                   |   | THOMAS                    H. COOKE, Director                        |   |
|                                                                                                                                                                                                                                                                                                   |   |                                                                |   |
| Dated:                    March 14, 2007                                                                                                                                                                                                                                                               | By:    | /s/                    Christopher L. Ellis                         |   |
|                                                                                                                                                                                                                                                                                                   |   | CHRISTOPHER                    L. ELLIS, Director                   |   |
|                                                                                                                                                                                                                                                                                                   |   |                                                                |   |
| Dated:                    March 14, 2007                                                                                                                                                                                                                                                               | By:    | /s/                    Manuel J. Moroun                             |   |
|                                                                                                                                                                                                                                                                                                   |   | MANUEL                    J. MOROUN, Director                       |   |
|                                                                                                                                                                                                                                                                                                   |   |                                                                |   |
| Dated:                    March 14, 2007                                                                                                                                                                                                                                                               | By:    | /s/                    Matthew T. Moroun                            |   |
|                                                                                                                                                                                                                                                                                                   |   | MATTHEW                    T. MOROUN, Director                      |   |
|                                                                                                                                                                                                                                                                                                   |   |                                                                |   |
| Dated:                    March 14, 2007                                                                                                                                                                                                                                                               | By:    | /s/                    Daniel C. Sullivan                           |   |
|                                                                                                                                                                                                                                                                                                   |   | DANIEL                    C. SULLIVAN, Director                     |   |
|                                                                                                                                                                                                                                                                                                   |   |                                                                |   |
| Dated:                    March 14, 2007                                                                                                                                                                                                                                                               | By:    | /s/                    Robert W. Weaver                             |   |
|                                                                                                                                                                                                                                                                                                   |   | ROBERT                    W. WEAVER,                                |   |
|                                                                                                                                                                                                                                                                                                   |   | President                    and Chief Executive Officer, Director  |   |
|                                                                                                                                                                                                                                                                                                   |   |                                                                |   |
| Dated:                    March 14, 2007                                                                                                                                                                                                                                                               | By:    | /s/                    Charles F. Wilkins                           |   |
|                                                                                                                                                                                                                                                                                                   |   | CHARLES                    F. WILKINS, Director                     |   |

----

**Table            of Contents**

**EXHIBIT          INDEX**

| **Exhibit                    #**  |   | **Description                    of Exhibit**                                                                                                                                                                                                                                                                                                                                                                               |
|----------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *3.1                                   |   | Amended                    and Restated Certificate of Incorporation of the Registrant (Exh.                    3.1,                    3/31/02 10-Q)                                                                                                                                                                                                                                                                                 |
|                                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *3.2                                   |   | Amended                    and Restated By-Laws of the Registrant (Exh. 3.2, 1/22/07                    8-K)                                                                                                                                                                                                                                                                                                                          |
|                                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *4.1                                   |   | Specimen                    Stock Certificate (Exh. 4.1, 1986 S-1)                                                                                                                                                                                                                                                                                                                                                                    |
|                                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *4.2                                   |   | Loan                    Agreement dated July 26, 1994 among First Tennessee Bank National                    Association, Registrant and P.A.M. Transport, Inc. together with                    Promissory Note (Exh. 4.1, 6/30/94 10-Q)                                                                                                                                                                                             |
|                                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *4.2.1                                 |   | Security                    Agreement dated July 26, 1994 between First Tennessee Bank National                    Association and P.A.M. Transport, Inc. (Exh. 4.2, 6/30/94                    10-Q)                                                                                                                                                                                                                                 |
|                                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *4.3                                   |   | First                    Amendment to Loan Agreement dated June 27, 1995 by and among                    P.A.M.                    Transport, Inc., First Tennessee Bank National Association and                    P.A.M.                    Transportation Services, Inc., together with Promissory Note                    in the                    principal amount of $2,500,000 (Exh. 4.1.1, 6/30/95                    10-Q) |
|                                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *4.3.1                                 |   | First                    Amendment to Security Agreement dated June 28, 1995 by and between                    P.A.M.                    Transport, Inc. and First Tennessee Bank National Association                    (Exh. 4.2.2,                    6/30/95 10-Q)                                                                                                                                                               |
|                                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *4.3.2                                 |   | Security                    Agreement dated June 27, 1995 by and between Choctaw Express,                    Inc. and                    First Tennessee Bank National Association (Exh. 4.1.3, 6/30/95                    10-Q)                                                                                                                                                                                                      |
|                                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *4.3.3                                 |   | Guaranty                    Agreement of P.A.M. Transportation Services, Inc. dated June                    27, 1995 in                    favor of First Tennessee Bank National Association respecting                    $10,000,000                    line of credit(Exh.                    4.1.4, 6/30/95 10-Q)                                                                                                                |
|                                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *4.4                                   |   | Second                    Amendment to Loan Agreement dated July 3, 1996 by P.A.M. Transport,                    Inc.,                    First Tennessee Bank National Association and P.A.M. Transportation                    Services, Inc., together with Promissory Note in the principal                    amount of                    $5,000,000 (Exh. 4.1.1, 9/30/96 10-Q)                                                 |
|                                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *4.4.1                                 |   | Second                    Amendment to Security Agreement dated July 3, 1996 by and between                    P.A.M.                    Transport, Inc. and First Tennessee National Bank Association                    (Exh. 4.1.2,                    9/30/96 10-Q)                                                                                                                                                               |
|                                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *4.4.2                                 |   | First                    Amendment to Security Agreement dated July 3, 1996 by and between                    Choctaw                    Express, Inc. and First Tennessee Bank National Association (Exh.                    4.1.3,                    9/30/96 10-Q)                                                                                                                                                                 |
|                                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *4.4.3                                 |   | Security                    Agreement dated July 3, 1996 by and between Allen Freight Services,                    Inc.                    and First Tennessee                    Bank National Association (Exh. 4.1.4, 9/30/96                    10-Q)                                                                                                                                                                             |

----

**Table              of Contents**

|    |   |                                                                                                                                                                                                                                                             |
|---------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *4.5.1  |   | Loan                    Agreement dated as of November 22, 2000 by and between P.A.M.                    Transport,                    Inc. and SunTrust Bank (Exh. 4.5.1, 2001 10-K)                                                                            |
|    |   |                                                                                                                                                                                                                                                             |
| *4.5.2  |   | Revolving                    Credit Note dated November 22, 2000 (Exh. 4.5.2, 2001                    10-K)                                                                                                                                                      |
|    |   |                                                                                                                                                                                                                                                             |
| *4.5.3  |   | Security                    Agreement by and between P.A.M. Transport, Inc. and SunTrust                    Bank (Exh.                    4.5.3, 2001 10-K)                                                                                                      |
|    |   |                                                                                                                                                                                                                                                             |
| *4.5.4  |   | First                    Amendment to Loan Agreement, Revolving Credit Note and Security                    Deposit                    (Exh. 4.5.4, 2001 10-K)                                                                                                   |
|    |   |                                                                                                                                                                                                                                                             |
| *10.1   | (1)    | Employment                    Agreement between the Registrant and Robert W. Weaver, effective                    July 1,                    2002 (Exh. 10.1.1, 2001 10-K)                                                                                       |
|    |   |                                                                                                                                                                                                                                                             |
| *10.1.1 | (1)    | Employment                    Agreement between the Registrant and Robert W. Weaver, effective                    July 1,                    2004 (Exh. 10.1, 1/25/2005 8-K)                                                                                     |
|    |   |                                                                                                                                                                                                                                                             |
| *10.1.2 | (1)    | New                    Employment Agreement between the Registrant and Robert W. Weaver,                    dated                    July 10, 2006 (Exh. 10.1, 7/28/2006 8-K)                                                                                    |
|    |   |                                                                                                                                                                                                                                                             |
| *10.2   | (1)    | Employment                    Agreement between the Registrant and W. Clif Lawson, dated January                    1, 2002                    (Exh. 10.2, 2001 10-K)                                                                                            |
|    |   |                                                                                                                                                                                                                                                             |
| *10.2.1 | (1)    | Memo                    exercising the Company's option to extend W. Clif Lawson's Employment                    Agreement by one year (Exh. 10.2.1, 2004 10-K)                                                                                                  |
|    |   |                                                                                                                                                                                                                                                             |
| *10.2.2 | (1)    | New                    Employment Agreement between the Registrant and W. Clif Lawson,                    dated June                    1, 2006 (Exh. 10.2, 7/28/2006 8-K)                                                                                       |
|    |   |                                                                                                                                                                                                                                                             |
| *10.3   | (1)    | Employment                    Agreement between the Registrant and Larry J. Goddard, dated                    January 1,                    2002 (Exh. 10.3, 2001 10-K)                                                                                          |
|    |   |                                                                                                                                                                                                                                                             |
| *10.3.1 | (1)    | Memo                    exercising the Company's option to extend Larry J. Goddard's                    Employment                    Agreement by one year (Exh. 10.3.1, 2004 10-K)                                                                             |
|    |   |                                                                                                                                                                                                                                                             |
| *10.3.2 | (1)    | New                    Employment Agreement between the Registrant and Larry J. Goddard,                    dated                    June 1, 2006 (Exh. 10.3, 7/28/2006 8-K)                                                                                     |
|    |   |                                                                                                                                                                                                                                                             |
| *10.4   | (1)    | 1995                    Stock Option Plan, as Amended and Restated (Exh. 4.1, 6/11/99                    S-8)                                                                                                                                                    |
|    |   |                                                                                                                                                                                                                                                             |
| *10.4.1 | (1)    | Amendment                    to 1995 Stock Option Plan (Exh. 10.1, 3/07/2005 8-K)                                                                                                                                                                                |
|    |   |                                                                                                                                                                                                                                                             |
| *10.4.2 | (1)    | 2006                    Stock Option Plan (Exh. 10.1, 5/31/2006 8-K)                                                                                                                                                                                             |
|    |   |                                                                                                                                                                                                                                                             |
| *10.5   |   | Interest                    rate swap agreement, dated March 1, 2001 (Exh. 10.5, 2001                    10-K)                                                                                                                                                   |
|    |   |                                                                                                                                                                                                                                                             |
| *10.6   |   | Interest                    rate swap agreement dated June 1, 2001 (Exh. 10.6, 2001                    10-K)                                                                                                                                                     |
|    |   |                                                                                                                                                                                                                                                             |
| *10.7   | (1)    | Employee                    Non-Qualified Stock Option Agreement (Exh. 10.1, 9/30/2004                    10-Q)                                                                                                                                                  |
|    |   |                                                                                                                                                                                                                                                             |
| *10.8   | (1)    | Director                    Non-Qualified Stock Option Agreement (Exh. 10.2, 9/30/2004                    10-Q)                                                                                                                                                  |
|    |   |                                                                                                                                                                                                                                                             |
| *10.8.1 | (1)    | Form                    of Non-Qualified Stock option Agreement for Non-Employee Director                    stock                    options that are granted under the 2006 Stock Option Plan (Exh.                    10.2,                    5/31/2006 8-K) |
|    |   |                                                                                                                                                                                                                                                             |
| *10.9   | (1)    | Executive                    Officers and Certain Other Employees Incentive Compensation Plan,                    as                    amended (Exh. 10.3, 9/30/2004 10-Q)                                                                                      |
|    |   |                                                                                                                                                                                                                                                             |
| *10.10  | (1)    | Extension                    of Executive Officers and Certain Other Employees Incentive Compensation                    Plan, as amended (Exh. 10.10, 2005 10-K)                                                                                                |
|    |   |                                                                                                                                                                                                                                                             |
| *10.11  | (1)    | Executive                    Incentive Plan (Exh. 10.2, 6/30/2006                    10-Q)                                                                                                                                                                       |

----

**Table              of Contents**

|                                                                                               |   |                                                                                              |
|----------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|
| 21.1                                                                                               |   | Subsidiaries                    of the                    Registrant                              |
|                                                                                               |   |                                                                                              |
| 23.1                                                                                               |   | Consent                    of Grant Thornton                    LLP                               |
|                                                                                               |   |                                                                                              |
| 23.2                                                                                               |   | Consent                    of Deloitte & Touche                    LLP                        |
|                                                                                               |   |                                                                                              |
| 31.1                                                                                               |   | Rule                    13a-14(a) Certification of Principal                    Executive Officer |
|                                                                                               |   |                                                                                              |
| 31.2                                                                                               |   | Rule                    13a-14(a) Certification of Principal                    Financial Officer |
|                                                                                               |   |                                                                                              |
| 32.1                                                                                               |   | Section                    1350 Certification of Chief Executive                    Officer       |
|                                                                                               |   |                                                                                              |
| 32.2                                                                                               |   | Section                    1350 Certification of Chief Financial                    Officer       |
|                                                                                               |   |                                                                                              |
| (1)                    Management contract or compensatory plan or                    arrangement. |

----