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

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

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

|   | (Address      of principal executive offices) (ZipCode) |
|--------|---------------------------------------------------------|

|   |  (479)      361-9111 |
|--------|---------------------------|

|   | Registrant's      telephone number, including areacode |
|--------|--------------------------------------------------------|

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

| Securities      registered pursuant to section 12(g) of the Act:  None |
|------------------------------------------------------------------------|

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

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

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

----

| Large      accelerated filer o |   | Accelerated      filer þ    |   |
|--------------------------------|--------|----------------------------------|--------|
|                           |   |                             |   |
| Non-accelerated      filer o   |   | Smaller      reporting company o |   |

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

----

P.A.M. TRANSPORTATION SERVICES, INC.

|    | 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      Matters  and Issuer Purchases of Equity      Securities |  12 |
| Item 6  | Selected Financial Data                                                                                                           | 14       |
| Item 7  | Management's Discussion and Analysis of Financial      Condition  and Results of Operations                             |  15 |
| Item 7A | Quantitative and Qualitative Disclosures About Market      Risk                                                                   | 28       |
| Item 8  | Financial Statements and Supplementary    Data                                                                                    | 29       |
| Item 9  | Changes in and Disagreements with Accountants on      Accounting  and Financial Disclosure                              |  56 |
| Item 9A | Controls and Procedures                                                                                                           | 56       |
| Item 9B | Other Information                                                                                                                 | 57       |
|    |                                                                                                                              |     |
|    | PART      III                                                                                                                     |     |
| Item 10 | Directors, Executive Officers and Corporate      Governance                                                                       | 58       |
| Item 11 | Executive Compensation                                                                                                            | 58       |
| Item 12 | Security Ownership of Certain Beneficial Owners and      Management  and Related Stockholder    Matters                 |  58 |
| Item 13 | Certain Relationships and Related Transactions, and      Director Independence                                                    | 59       |
| Item 14 | Principal Accounting Fees and Services                                                                                            | 59       |
|    |                                                                                                                              |     |
|    | PART      IV                                                                                                                      |     |
| Item 15 | Exhibits, Financial Statement Schedules                                                                                           | 59       |
|    |                                                                                                                              |     |
|    | SIGNATURES                                                                                                                        | 62       |
|    |                                                                                                                              |     |
|    | EXHIBIT INDEX                                                                                                                     | 63       |

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Item 1. Business.

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|   | · | maintain      more consistent equipment capacity; |
|--------|--------|---------------------------------------------------|

|   | · | provide      a high level of service to our customers, including time-sensitive      delivery schedules; |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | attract      and retain drivers; and |
|--------|--------|--------------------------------------|

|   | · | maintain      a sound safety record as drivers travel familiar  routes. |
|--------|--------|-------------------------------------------------------------------------|

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| · | Price      increases by truck and trailer equipment manufacturers, volatile fuel      costs, and intense competition forfreight. |
|--------|----------------------------------------------------------------------------------------------------------------------------------|

| · | In      recent years, many less profitable or undercapitalized carriers have been      forced to consolidate or to exit theindustry. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|

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|   Name      |   |   Age |   |   Position                                                                 |   |   Years      of service |
|-----------------------|--------|-----------------|--------|--------------------------------------------------------------------------------------|--------|-----------------------------------|
| Robert      W. Weaver |   | 59              |   | President      and Chief Executive Officer                                           |   | 26                                |
| W.      Clif Lawson   |   | 55              |   | Executive      Vice President and Chief Operating Officer                            |   | 24                                |
| Larry      J. Goddard |   | 50              |   | Vice      President - Finance, Chief Financial Officer, Secretary and      Treasurer |   | 21                                |

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Item 1A. Risk Factors.

| · | we      compete with many other truckload carriers of varying sizes and, to a      lesser extent, with less-than-truckload carriers and railroads, some of      which have more equipment and greater capital resources than we      do; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | some      of our competitors periodically reduce their freight rates to gain      business, especially during times of reduced growth rates in the economy,      which may limit our ability to maintain or increase freight rates,      maintain our margins or maintain significant growth in our      business; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | many      customers reduce the number of carriers they use by selecting so-called      “core carriers” as approved service providers, and in some instances we      may not be selected; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | many      customers periodically accept bids from multiple carriers for their      shipping needs, and this process may depress freight rates or result in      the loss of some of our business tocompetitors; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the      trend toward consolidation in the trucking industry may create other large      carriers with greater financial resources and other competitive advantages      relating to their size and with whom we may have difficulty      competing; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| · | advances      in technology require increased investments to remain competitive, and our      customers may not be willing to accept higher freight rates to cover the      cost of these investments; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | competition      from Internet-based and other logistics and freight brokerage companies      may adversely affect our customer relationships and freight rates;      and |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | economies      of scale that may be passed on to smaller carriers by procurement      aggregation providers may improve their ability to compete with      us. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

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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       | No             | 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             |
| 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     | No             | No                  | No             |
| Irving,      Texas               | Own       | Yes            | Yes                 | Yes            |
| Laredo,      Texas               | Own       | Yes            | Yes                 | No             |

Item 3. Legal Proceedings.

Item 4. Submission of Matters to a Vote of SecurityHolders.

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Item 5

|                |   | High   |   |   | Low    |   |
|---------------------|--------|--------|--------|--------|--------|--------|
| First      Quarter  |   | $      | 16.85  |   |   | $      | 13.82 |   |
| Second      Quarter |   |   | 16.90  |   |   |   | 9.22 |   |
| Third      Quarter  |   |   | 15.82  |   |   |   | 9.82 |   |
| Fourth      Quarter |   |   | 11.08  |   |   |   | 3.15 |   |

|                |   | High   |   |   | Low    |   |
|---------------------|--------|--------|--------|--------|--------|--------|
| First      Quarter  |   | $      | 25.19  |   |   | $      | 19.29 |   |
| Second      Quarter |   |   | 22.48  |   |   |   | 16.98 |   |
| Third      Quarter  |   |   | 19.31  |   |   |   | 17.43 |   |
| Fourth      Quarter |   |   | 18.69  |   |   |   | 13.80 |   |

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| Period                   |   | Total      number of shares purchased |    |   | Average      price paid per share |   |   | Total      number of shares purchased as part of publicly announcedplans or programs |   |   | Maximum      number of shares that may yet be purchased under the plans or programs |   |
|--------------------------|--------|--------------------------------------------|---------|--------|-----------------------------------|--------|--------|--------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------|--------|
| October      1-31, 2008  |   |                                       | 49,700  |   |                              | $      | 9.78   |                                                                                 |   |   | 49,700                                                                              |   |   |   | 204,500 |   |
| November      1-30, 2008 |   |                                       | 17,300  |   |                              |   | 6.77   |                                                                                 |   |   | 17,300                                                                              |   |   |   | 187,200 |   |
| December      1-31, 2008 |   |                                       | 187,200 |   |                              |   | 4.81   |                                                                                 |   |   | 187,200                                                                             |   |   |   | - |   |
| Total                    |   |                                       | 254,200 |   |                              | $      | 5.91   |                                                                                 |   |   | 254,200                                                                             |   |   |   | - |   |

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Item 6

|                                                               |   | Year      Ended December 31,                  |    |
|--------------------------------------------------------------------|--------|-----------------------------------------------|---------|
|                                                               |   | 2008                                          |    |   | 2007 |   |   | 2006 |   |   | 2005 |   |   | 2004 |   |
|                                                               |   | (in      thousands, except per share amounts) |    |
| Statement      of Operations Data:                                 |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      revenues:                                           |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |
|    Operating      revenues, before fuel surcharge   |   | $                                             | 323,272 |   |   | $ | 351,701 |   |   | $ | 351,373 |   |   | $ | 326,353 |   |   | $ | 309,475 |   |
|    Fuel      surcharge                              |   |                                          | 83,451  |   |   |   | 57,140 |   |   |   | 48,896 |   |   |   | 34,527 |   |   |   | 15,591 |   |
| Total      operating revenues                                      |   |                                          | 406,723 |   |   |   | 408,841 |   |   |   | 400,269 |   |   |   | 360,880 |   |   |   | 325,066 |   |
|                                                               |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses:                                           |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Salaries,      wages and benefits                |   |                                          | 123,961 |   |   |   | 135,606 |   |   |   | 127,539 |   |   |   | 122,005 |   |   |   | 119,519 |   |
|    Fuel      expense                                |   |                                          | 140,531 |   |   |   | 114,242 |   |   |   | 97,286 |   |   |   | 81,017 |   |   |   | 55,645 |   |
|    Rent      and purchased transportation           |   |                                          | 39,887  |   |   |   | 38,718 |   |   |   | 43,844 |   |   |   | 39,074 |   |   |   | 38,938 |   |
|    Depreciation      and amortization               |   |                                          | 37,477  |   |   |   | 38,759 |   |   |   | 33,929 |   |   |   | 31,376 |   |   |   | 30,016 |   |
|    Goodwill      impairment charge                  |   |                                          | 15,413  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|    Operating      supplies                          |   |                                          | 30,514  |   |   |   | 30,845 |   |   |   | 25,682 |   |   |   | 23,114 |   |   |   | 21,718 |   |
|    Operating      taxes and licenses                |   |                                          | 15,937  |   |   |   | 17,520 |   |   |   | 16,421 |   |   |   | 15,776 |   |   |   | 15,488 |   |
|    Insurance      and claims                        |   |                                          | 16,018  |   |   |   | 17,591 |   |   |   | 16,389 |   |   |   | 15,992 |   |   |   | 15,820 |   |
|    Communications      and utilities                |   |                                          | 2,869   |   |   |   | 3,113 |   |   |   | 2,642 |   |   |   | 2,648 |   |   |   | 2,690 |   |
|    Other                                            |   |                                          | 5,119   |   |   |   | 7,130 |   |   |   | 5,426 |   |   |   | 6,205 |   |   |   | 5,131 |   |
|    Loss      (gain) on sale or disposal of property |   |                                          | 952     |   |   |   | (48 | ) |   |   | 47 |   |   |   | 147 |   |   |   | 915 |   |
| Total      operating expenses                                      |   |                                          | 428,678 |   |   |   | 403,476 |   |   |   | 369,205 |   |   |   | 337,354 |   |   |   | 305,880 |   |
| Operating      (loss) income                                       |   |                                          | (21,955 | ) |   |   | 5,365 |   |   |   | 31,064 |   |   |   | 23,526 |   |   |   | 19,186 |   |
| Non-operating      (loss) income                                   |   |                                          | (4,996  | ) |   |   | 1,707 |   |   |   | 448 |   |   |   | 477 |   |   |   | 464 |   |
| Interest      expense                                              |   |                                          | (2,429  | ) |   |   | (2,453 | ) |   |   | (1,475 | ) |   |   | (1,881 | ) |   |   | (1,758 | ) |
| (Loss)      income before income taxes                             |   |                                          | (29,380 | ) |   |   | 4,619 |   |   |   | 30,037 |   |   |   | 22,122 |   |   |   | 17,892 |   |
| Income      tax (benefit) expense                                  |   |                                          | (10,615 | ) |   |   | 1,966 |   |   |   | 12,073 |   |   |   | 8,983 |   |   |   | 7,304 |   |
| Net      (loss) income                                             |   | $                                             | (18,765 | ) |   | $ | 2,653 |   |   | $ | 17,964 |   |   | $ | 13,139 |   |   | $ | 10,588 |   |
| (Loss)      earnings per common share:                             |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                              |   | $                                             | (1.94   | ) |   | $ | 0.26 |   |   | $ | 1.74 |   |   | $ | 1.20 |   |   | $ | 0.94 |   |
| Diluted                                                            |   | $                                             | (1.94   | ) |   | $ | 0.26 |   |   | $ | 1.74 |   |   | $ | 1.20 |   |   | $ | 0.94 |   |
| Average      common shares outstanding – Basic               |   |                                          | 9,683   |   |   |   | 10,238 |   |   |   | 10,296 |   |   |   | 10,966 |   |   |   | 11,298 |   |
| Average      common shares outstanding – Diluted(1)          |   |                                          | 9,683   |   |   |   | 10,239 |   |   |   | 10,302 |   |   |   | 10,976 |   |   |   | 11,324 |   |

| (1)   | Diluted      income per share for 2008, 2007, 2006, 2005 and 2004 assumes the exercise      of stock options to purchase an aggregate of 0, 19,213, 55,738, 22,297 and      62,224 shares of common stock,respectively. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                          |   | At      December 31,         |    |
|---------------------------------------------------------------|--------|------------------------------|---------|
|                                                          |   | 2008                         |    |   | 2007 |   |   | 2006 |   |   | 2005 |   |   | 2004 |   |
| Balance      Sheet Data:                                      |   | (in      thousands)          |    |
| Total      assets                                             |   | $                            | 290,361 |   |   | $ | 319,904 |   |   | $ | 314,246 |   |   | $ | 293,441 |   |   | $ | 285,349 |   |
| Long-term      debt, excluding current portion                |   |                         | 35,492  |   |   |   | 44,172 |   |   |   | 21,205 |   |   |   | 39,693 |   |   |   | 23,225 |   |
| Stockholders'      equity                                     |   |                         | 155,477 |   |   |   | 179,377 |   |   |   | 185,028 |   |   |   | 164,762 |   |   |   | 168,543 |   |
|                                                          |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                          |   | Year      Ended December 31, |    |
|                                                          |   | 2008                         |    |   | 2007 |   |   | 2006 |   |   | 2005 |   |   | 2004 |   |
| Operating      Data:                                          |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      ratio (1)                                      |   |                         | 106.8   | % |   |   | 98.5 | % |   |   | 91.2 | % |   |   | 92.8 | % |   |   | 93.8 | % |
| Average      number of truckloads per week                    |   |                         | 7,559   |   |   |   | 7,849 |   |   |   | 7,200 |   |   |   | 6,946 |   |   |   | 7,278 |   |
| Average      miles per trip                                   |   |                         | 598     |   |   |   | 647 |   |   |   | 659 |   |   |   | 680 |   |   |   | 664 |   |
| Total      miles traveled (in thousands)                      |   |                         | 221,450 |   |   |   | 246,801 |   |   |   | 229,810 |   |   |   | 228,624 |   |   |   | 235,894 |   |
| Average      miles per truck                                  |   |                         | 111,114 |   |   |   | 118,483 |   |   |   | 123,156 |   |   |   | 125,479 |   |   |   | 127,124 |   |
| Average      revenue, before fuel surcharge per truck per day |   | $                            | 662     |   |   | $ | 695 |   |   | $ | 778 |   |   | $ | 740 |   |   | $ | 684 |   |
| Average      revenue, before fuel surcharge per loaded mile   |   | $                            | 1.41    |   |   | $ | 1.38 |   |   | $ | 1.43 |   |   | $ | 1.33 |   |   | $ | 1.19 |   |
| Empty      mile factor                                        |   |                         | 7.3     | % |   |   | 6.5 | % |   |   | 5.9 | % |   |   | 5.5 | % |   |   | 4.7 | % |
|                                                          |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| At      end of period:                                        |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      company-owned/leased trucks                        |   |                         | 1,839   | (2) |   |   | 2,055 | (3) |   |   | 1,998 | (4) |   |   | 1,792 | (5) |   |   | 1,857 | (6) |
| Average      age of trucks (in years)                         |   |                         | 1.90    |   |   |   | 1.75 |   |   |   | 1.55 |   |   |   | 1.43 |   |   |   | 1.70 |   |
| Total      trailers                                           |   |                         | 4,809   |   |   |   | 4,882 |   |   |   | 4,540 |   |   |   | 4,406 |   |   |   | 4,257 |   |
| Average      age of trailers (in years)                       |   |                         | 4.43    |   |   |   | 4.44 |   |   |   | 4.16 |   |   |   | 3.92 |   |   |   | 4.69 |   |
| Number      of employees                                      |   |                         | 2,931   |   |   |   | 3,181 |   |   |   | 3,062 |   |   |   | 3,035 |   |   |   | 2,736 |   |

Item 7

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|                                                        |   | Years      Ended December 31, |   |
|-------------------------------------------------------------|--------|-------------------------------|--------|
|                                                        |   | 2008                          |   |   | 2007 |   |   | 2006 |   |
| Operating      revenues, before fuel surcharge              |   |                          | 100.0  | % |   |   | 100.0 | % |   |   | 100.0 | % |
| Operating      expenses:                                    |   |                          |   |   |   |   |   |   |   |   |   |   |
|    Salaries,      wages and benefits         |   |                          | 42.1   |   |   |   | 42.0 |   |   |   | 40.6 |   |
|    Fuel      expense, net of fuel surcharge  |   |                          | 19.9   |   |   |   | 18.2 |   |   |   | 16.0 |   |
|    Rent      and purchased transportation    |   |                          | 3.2    |   |   |   | 2.5 |   |   |   | 1.7 |   |
|    Depreciation      and amortization        |   |                          | 12.9   |   |   |   | 12.2 |   |   |   | 11.0 |   |
|    Goodwill      impairment                  |   |                          | 2.9    |   |   |   | 0.0 |   |   |   | 0.0 |   |
|    Operating      supplies and expenses      |   |                          | 10.5   |   |   |   | 9.7 |   |   |   | 8.3 |   |
|    Operating      taxes and licenses         |   |                          | 5.5    |   |   |   | 5.5 |   |   |   | 5.3 |   |
|    Insurance      and claims                 |   |                          | 5.5    |   |   |   | 5.5 |   |   |   | 5.3 |   |
|    Communications      and utilities         |   |                          | 1.0    |   |   |   | 0.9 |   |   |   | 0.8 |   |
|    Other                                     |   |                          | 1.7    |   |   |   | 2.0 |   |   |   | 1.6 |   |
|    Loss      on sale or disposal of property |   |                          | 0.3    |   |   |   | 0.0 |   |   |   | 0.0 |   |
| Total      operating expenses                               |   |                          | 105.5  |   |   |   | 98.5 |   |   |   | 90.6 |   |
| Operating      (loss) income                                |   |                          | (5.5   | ) |   |   | 1.5 |   |   |   | 9.4 |   |
| Non-operating      (loss) income                            |   |                          | (1.7   | ) |   |   | 0.5 |   |   |   | 0.1 |   |
| Interest      expense                                       |   |                          | (0.8   | ) |   |   | (0.7 | ) |   |   | (0.4 | ) |
| (Loss)      income before income taxes                      |   |                          | (8.0   | )% |   |   | 1.3 | % |   |   | 9.1 | % |

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|                                                                            |   | Years      Ended December 31, |   |
|---------------------------------------------------------------------------------|--------|-------------------------------|--------|
|                                                                            |   | 2008                          |   |   | 2007 |   |   | 2006 |   |
| Operating      revenues, before fuel surcharge                                  |   |                          | 100.0  | % |   |   | 100.0 | % |   |   | 100.0 | % |
| Operating      expenses:                                                        |   |                          |   |   |   |   |   |   |   |   |   |   |
|    Salaries,      wages and benefits                             |   |                          | 6.2    |   |   |   | 6.3 |   |   |   | 5.0 |   |
|    Fuel      expense                                             |   |                          | 0.0    |   |   |   | 0.0 |   |   |   | 0.0 |   |
|    Rent      and purchased transportation, net of fuel surcharge |   |                          | 89.5   |   |   |   | 88.9 |   |   |   | 88.3 |   |
|    Depreciation      and amortization                            |   |                          | 0.0    |   |   |   | 0.0 |   |   |   | 0.0 |   |
|    Goodwill      impairment                                      |   |                          | 20.6   |   |   |   | 0.0 |   |   |   | 0.0 |   |
|    Operating      supplies and expenses                          |   |                          | 0.0    |   |   |   | 0.0 |   |   |   | 0.0 |   |
|    Operating      taxes and licenses                             |   |                          | 0.0    |   |   |   | 0.0 |   |   |   | 0.0 |   |
|    Insurance      and claims                                     |   |                          | 0.1    |   |   |   | 0.1 |   |   |   | 0.0 |   |
|    Communications      and utilities                             |   |                          | 0.3    |   |   |   | 0.3 |   |   |   | 0.3 |   |
|    Other                                                         |   |                          | 1.0    |   |   |   | 2.1 |   |   |   | 1.4 |   |
|    Loss      on sale or disposal of property                     |   |                          | 0.0    |   |   |   | 0.0 |   |   |   | 0.0 |   |
| Total      operating expenses                                                   |   |                          | 117.7  |   |   |   | 97.7 |   |   |   | 95.0 |   |
| Operating      (loss) income                                                    |   |                          | (17.7  | ) |   |   | 2.3 |   |   |   | 5.0 |   |
| Non-operating      (loss) income                                                |   |                          | 0.0    |   |   |   | 0.0 |   |   |   | 0.0 |   |
| Interest      expense                                                           |   |                          | (0.2   | ) |   |   | (0.4 | ) |   |   | (0.4 | ) |
| (Loss)      income before income taxes                                          |   |                          | (17.9  | )% |   |   | 1.9 | % |   |   | 4.6 | % |

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|                                   |   | Quarter      Ended                                  |    |
|----------------------------------------|--------|-----------------------------------------------------|---------|
|                                   |   | Mar.      31,2008                                   |    |   | June      30,2008 |   |   | Sept.      30,2008 |   |   | Dec.      31,2008 |   |   | Mar.      31,2007 |   |   | June      30,2007 |   |   | Sept.      30,2007 |   |   | Dec.      31,2007 |   |
|                                   |   | (unaudited)                                         |    |
|                                   |   | (in      thousands, except earnings per share data) |    |
| Operating      revenues                |   | $                                                   | 105,820 |   |   | $ | 110,930 |   |   | $ | 105,958 |   |   | $ | 84,014 |   |   | $ | 98,809 |   |   | $ | 106,700 |   |   | $ | 101,171 |   |   | $ | 102,162 |   |
| Total      operating expenses          |   |                                                | 109,786 |   |   |   | 112,460 |   |   |   | 107,240 |   |   |   | 99,190 |   |   |   | 96,475 |   |   |   | 102,528 |   |   |   | 100,688 |   |   |   | 103,785 |   |
| Operating      (loss) income           |   |                                                | (3,966  | ) |   |   | (1,530 | ) |   |   | (1,282 | ) |   |   | (15,176 | ) |   |   | 2,334 |   |   |   | 4,172 |   |   |   | 483 |   |   |   | (1,623 | ) |
| Net      (loss) income                 |   |                                                | (2,828  | ) |   |   | (1,332 | ) |   |   | (3,181 | ) |   |   | (11,424 | ) |   |   | 1,265 |   |   |   | 2,192 |   |   |   | 36 |   |   |   | (840 | ) |
| (Loss)      earnings per common share: |   |                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                  |   | $                                                   | (0.29   | ) |   | $ | (0.14 | ) |   | $ | (0.33 | ) |   | $ | (1.19 | ) |   | $ | 0.12 |   |   | $ | 0.21 |   |   | $ | 0.00 |   |   | $ | (0.08 | ) |
| Diluted                                |   | $                                                   | (0.29   | ) |   | $ | (0.14 | ) |   | $ | (0.33 | ) |   | $ | (1.19 | ) |   | $ | 0.12 |   |   | $ | 0.21 |   |   | $ | 0.00 |   |   | $ | (0.08 | ) |

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|                      |   | Payments due by period(in      thousands) |   |
|---------------------------|--------|-------------------------------------------|--------|
|                      |   | Total                                     |   |   | Less      than1 year |   |   | 1      to 3Years |   |   | 3      to 5Years |   |   | More      than5 Years |   |
|                      |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term      debt (1)   |   | $                                         | 55,505 |   |   | $ | 18,079 |   |   | $ | 33,473 |   |   | $ | 3,953 |   |   | $ | - |   |
| Operating      leases (2) |   |                                      | 917    |   |   |   | 256 |   |   |   | 389 |   |   |   | 272 |   |   |   | - |   |
| Total                     |   | $                                         | 56,422 |   |   | $ | 18,335 |   |   | $ | 33,862 |   |   | $ | 4,225 |   |   | $ | - |   |
|                      |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (1)   | Including      interest. |
|-----------------|--------------------------|

| (2)   | Represents      building, facilities, and drop yard operating  leases. |
|-----------------|------------------------------------------------------------------------|

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Item 7A

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Item 8

Report of Independent Registered Public Accounting Firm – GrantThornton LLP

Consolidated Balance Sheets - December 31, 2008 and2007

Consolidated Statements of Operations - Years ended December 31,2008, 2007 and 2006

Consolidated Statements of Shareholders’ Equity and OtherComprehensive Income (Loss) - Years ended

December 31, 2008, 2007 and 2006

Consolidated Statements of Cash Flows - Years ended December 31,2008, 2007 and 2006

Notes to Consolidated Financial Statements

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REPORT

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| P.A.M. TRANSPORTATION SERVICES, INC. AND      SUBSIDIARIES CONSOLIDATED      BALANCE SHEETSDECEMBER      31, 2008 AND 2007(in      thousands, except share and per share data) |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                |   |   |   |   |   |   |
|                                                                                                                                                                                |   |   |   |   |   |   |
| ASSETS                                                                                                                                                                              |   | 2008 |   |   | 2007 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |
| CURRENT      ASSETS:                                                                                                                                                                |   |   |   |   |   |   |
| Cash      and cash equivalents                                                                                                                                                      |   | $ | 858 |   |   | $ | 407 |   |
| Accounts      receivable—net:                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Trade                                                                                                                                                                               |   |   | 43,815 |   |   |   | 58,397 |   |
| Other                                                                                                                                                                               |   |   | 1,088 |   |   |   | 5,349 |   |
| Inventories                                                                                                                                                                         |   |   | 858 |   |   |   | 905 |   |
| Prepaid      expenses and deposits                                                                                                                                                  |   |   | 9,443 |   |   |   | 14,978 |   |
| Marketable      equity securities                                                                                                                                                   |   |   | 12,540 |   |   |   | 17,269 |   |
| Income      taxes refundable                                                                                                                                                        |   |   | 524 |   |   |   | 2,199 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Total      current assets                                                                                                                                                           |   |   | 69,126 |   |   |   | 99,504 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| PROPERTY      AND EQUIPMENT:                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Land                                                                                                                                                                                |   |   | 4,916 |   |   |   | 2,674 |   |
| Structures      and improvements                                                                                                                                                    |   |   | 13,596 |   |   |   | 9,795 |   |
| Revenue      equipment                                                                                                                                                              |   |   | 320,188 |   |   |   | 292,133 |   |
| Office      furniture and equipment                                                                                                                                                 |   |   | 7,606 |   |   |   | 7,482 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Total      property and equipment                                                                                                                                                   |   |   | 346,306 |   |   |   | 312,084 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Accumulated      depreciation                                                                                                                                                       |   |   | (125,742 | ) |   |   | (107,841 | ) |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Net      property and equipment                                                                                                                                                     |   |   | 220,564 |   |   |   | 204,243 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| OTHER      ASSETS:                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Goodwill                                                                                                                                                                            |   |   | - |   |   |   | 15,413 |   |
| Non-compete      agreements, net                                                                                                                                                    |   |   | - |   |   |   | 17 |   |
| Other                                                                                                                                                                               |   |   | 671 |   |   |   | 727 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Total      other assets                                                                                                                                                             |   |   | 671 |   |   |   | 16,157 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| TOTAL      ASSETS                                                                                                                                                                   |   | $ | 290,361 |   |   | $ | 319,904 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                |   |   |   |   |   | (Continued) |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| See      notes to consolidated financial statements.                                                                                                                                |   |

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| CONSOLIDATED      BALANCE SHEETSDECEMBER      31, 2008 AND 2007(in      thousands, except share and per share data)                                                                                                                         |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                        |   |   |   |   |   |   |
|                                                                                                                                                                                                                                        |   |   |   |   |   |   |
| LIABILITIES      AND SHAREHOLDERS' EQUITY                                                                                                                                                                                                   |   | 2008 |   |   | 2007 |   |
|                                                                                                                                                                                                                                        |   |   |   |   |   |   |
| CURRENT      LIABILITIES:                                                                                                                                                                                                                   |   |   |   |   |   |   |
| Accounts      payable                                                                                                                                                                                                                       |   | $ | 20,269 |   |   | $ | 25,346 |   |
| Accrued      expenses and other liabilities                                                                                                                                                                                                 |   |   | 15,684 |   |   |   | 10,323 |   |
| Current      maturities of long—term debt                                                                                                                                                                                             |   |   | 15,928 |   |   |   | 2,065 |   |
| Deferred      income taxes—current                                                                                                                                                                                                    |   |   | 157 |   |   |   | 5,117 |   |
|                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Total      current liabilities                                                                                                                                                                                                              |   |   | 52,038 |   |   |   | 42,851 |   |
|                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Long-term      debt—less current portion                                                                                                                                                                                              |   |   | 35,492 |   |   |   | 44,172 |   |
| Deferred      income taxes—less current portion                                                                                                                                                                                       |   |   | 47,354 |   |   |   | 53,504 |   |
|                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Total      liabilities                                                                                                                                                                                                                      |   |   | 134,884 |   |   |   | 140,527 |   |
|                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| COMMITMENTS      AND CONTINGENCIES                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| SHAREHOLDERS'      EQUITY                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Preferred      stock, $.01 par value, 10,000,000 shares authorized;      none issued                                                                                                                                                   |   |   | - |   |   |   | - |   |
| Common      stock, $.01 par value, 40,000,000 shares authorized;      11,368,207 and 11,368,207 shares issued; 9,409,607      and 9,838,107 shares outstanding at December      31, 2008 and December 31, 2007, respectively |   |   | 114 |   |   |   | 114 |   |
| Additional      paid-in capital                                                                                                                                                                                                             |   |   | 77,659 |   |   |   | 77,557 |   |
| Accumulated      other comprehensive income                                                                                                                                                                                                 |   |   | 611 |   |   |   | 1,921 |   |
| Treasury      stock, at cost; 1,958,600 and 1,530,100 shares,      respectively                                                                                                                                                        |   |   | (29,127 | ) |   |   | (25,200 | ) |
| Retained      earnings                                                                                                                                                                                                                      |   |   | 106,220 |   |   |   | 124,985 |   |
|                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Total      shareholders’ equity                                                                                                                                                                                                       |   |   | 155,477 |   |   |   | 179,377 |   |
|                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| TOTAL      LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                                                                             |   | $ | 290,361 |   |   | $ | 319,904 |   |
|                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                        |   |   |   |   |   | (Concluded) |   |
| See      notes to consolidated financial statements.                                                                                                                                                                                        |   |

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| P.A.M. TRANSPORTATION SERVICES, INC. AND      SUBSIDIARIES CONSOLIDATED      STATEMENTS OF OPERATIONSYEARS      ENDED DECEMBER 31, 2008, 2007 AND 2006(in      thousands, except per share data) |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                  |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| OPERATING      REVENUES:                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |
| Revenue,      before fuel surcharge                                                                                                                                                                   |   | $ | 323,272 |   |   | $ | 351,701 |   |   | $ | 351,373 |   |
| Fuel      surcharge                                                                                                                                                                                   |   |   | 83,451 |   |   |   | 57,140 |   |   |   | 48,896 |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      operating revenues                                                                                                                                                                         |   |   | 406,723 |   |   |   | 408,841 |   |   |   | 400,269 |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING      EXPENSES AND COSTS:                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries,      wages and benefits                                                                                                                                                                     |   |   | 123,961 |   |   |   | 135,606 |   |   |   | 127,539 |   |
| Fuel      expense                                                                                                                                                                                     |   |   | 140,531 |   |   |   | 114,242 |   |   |   | 97,286 |   |
| Rents      and purchased transportation                                                                                                                                                               |   |   | 39,887 |   |   |   | 38,718 |   |   |   | 43,844 |   |
| Depreciation      and amortization                                                                                                                                                                    |   |   | 37,477 |   |   |   | 38,759 |   |   |   | 33,929 |   |
| Goodwill      impairment charge                                                                                                                                                                       |   |   | 15,413 |   |   |   | - |   |   |   | - |   |
| Operating      supplies and expenses                                                                                                                                                                  |   |   | 30,514 |   |   |   | 30,845 |   |   |   | 25,682 |   |
| Operating      taxes and licenses                                                                                                                                                                     |   |   | 15,937 |   |   |   | 17,520 |   |   |   | 16,421 |   |
| Insurance      and claims                                                                                                                                                                             |   |   | 16,018 |   |   |   | 17,591 |   |   |   | 16,389 |   |
| Communications      and utilities                                                                                                                                                                     |   |   | 2,869 |   |   |   | 3,113 |   |   |   | 2,642 |   |
| Other                                                                                                                                                                                                 |   |   | 5,119 |   |   |   | 7,130 |   |   |   | 5,426 |   |
| Loss      (gain) on disposition of equipment                                                                                                                                                          |   |   | 952 |   |   |   | (48 | ) |   |   | 47 |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      operating expenses and costs                                                                                                                                                               |   |   | 428,678 |   |   |   | 403,476 |   |   |   | 369,205 |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING      (LOSS) INCOME                                                                                                                                                                          |   |   | (21,955 | ) |   |   | 5,365 |   |   |   | 31,064 |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| NON-OPERATING      (EXPENSE) INCOME                                                                                                                                                                   |   |   | (4,996 | ) |   |   | 1,707 |   |   |   | 448 |   |
| INTEREST      EXPENSE                                                                                                                                                                                 |   |   | (2,429 | ) |   |   | (2,453 | ) |   |   | (1,475 | ) |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| (LOSS)      INCOME BEFORE INCOME TAXES                                                                                                                                                                |   |   | (29,380 | ) |   |   | 4,619 |   |   |   | 30,037 |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| FEDERAL      & STATE INCOME TAX (BENEFIT) EXPENSE:                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                                                                                                                                                                                               |   |   | 314 |   |   |   | 217 |   |   |   | 9,768 |   |
| Deferred                                                                                                                                                                                              |   |   | (10,929 | ) |   |   | 1,749 |   |   |   | 2,305 |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      federal & state income tax (benefit) expense                                                                                                                                           |   |   | (10,615 | ) |   |   | 1,966 |   |   |   | 12,073 |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      (LOSS) INCOME                                                                                                                                                                                |   | $ | (18,765 | ) |   | $ | 2,653 |   |   | $ | 17,964 |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| (LOSS)      EARNINGS PER COMMON SHARE:                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                                                                                                 |   | $ | (1.94 | ) |   | $ | 0.26 |   |   | $ | 1.74 |   |
| Diluted                                                                                                                                                                                               |   | $ | (1.94 | ) |   | $ | 0.26 |   |   | $ | 1.74 |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| AVERAGE      COMMON SHARES OUTSTANDING:                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                                                                                                 |   |   | 9,683 |   |   |   | 10,238 |   |   |   | 10,296 |   |
| Diluted                                                                                                                                                                                               |   |   | 9,683 |   |   |   | 10,239 |   |   |   | 10,302 |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| See      notes to consolidated financial statements.                                                                                                                                                  |   |

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| P.A.M. TRANSPORTATION SERVICES, INC. AND      SUBSIDIARIES CONSOLIDATED      STATEMENTS OF STOCKHOLDERS’ EQUITY AND OTHER COMPREHENSIVE INCOME      (LOSS)YEARS      ENDED DECEMBER 31, 2008, 2007 AND 2006(in      thousands) |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                      |   | Common StockShares      / Amount |   |   | Additional      Paid-In Capital |   |   | Other      Comprehensive Income (Loss) |   |   | Accumulated      Other Comprehensive Income |   |   | Treasury      Stock |   |   | Retained      Earnings |   |   | Total |   |
|                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE—      January 1, 2006                                                                                                                                                                                                       |   |   | 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 |   |
|                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Components      of comprehensive income:                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      earnings                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 2,653 |   |   |   |   |   |   |   |   |   |   |   | 2,653 |   |   |   | 2,653 |   |
| Other      comprehensive gain:                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Realized      gain on marketable                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| securities,      net of tax of $241                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (359 | ) |   |   | (359 | ) |   |   |   |   |   |   |   |   |   |   | (359 | ) |
| Unrealized      loss on marketable                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| securities,      net of tax of $(448)                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (862 | ) |   |   | (862 | ) |   |   |   |   |   |   |   |   |   |   | (862 | ) |
| Total      comprehensive income                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 1,432 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Treasury      stock repurchases                                                                                                                                                                                                           |   |   | (471 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (7,331 | ) |   |   |   |   |   |   | (7,331 | ) |
| Exercise      of stock options-shares                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| issued      including tax benefits                                                                                                                                                                                                        |   |   | 6 |   |   |   |   |   |   |   | 125 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 125 |   |
| Share-based      compensation                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   | 123 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 123 |   |
| BALANCE—      December 31, 2007                                                                                                                                                                                                     |   |   | 9,838 |   |   |   | 114 |   |   |   | 77,557 |   |   |   |   |   |   |   | 1,921 |   |   |   | (25,200 | ) |   |   | 124,985 |   |   |   | 179,377 |   |
|                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Components      of comprehensive income:                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | (18,765 | ) |   |   |   |   |   |   |   |   |   |   | (18,765 | ) |   |   | (18,765 | ) |
| Other      comprehensive gain:                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Realized      loss on marketable                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| securities,      net of tax of $(6)                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 11 |   |   |   | 11 |   |   |   |   |   |   |   |   |   |   |   | 11 |   |
| Unrealized      loss on marketable                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| securities,      net of tax of $(1,072)                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,321 | ) |   |   | (1,321 | ) |   |   |   |   |   |   |   |   |   |   | (1,321 | ) |
| Total      comprehensive income (loss)                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | (20,075 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Treasury      stock repurchases                                                                                                                                                                                                           |   |   | (428 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (3,927 | ) |   |   |   |   |   |   | (3,927 | ) |
| Share-based      compensation                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   | 102 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 102 |   |
| BALANCE—      December 31, 2008                                                                                                                                                                                                     |   |   | 9,410 |   |   | $ | 114 |   |   | $ | 77,659 |   |   |   |   |   |   | $ | 611 |   |   | $ | (29,127 | ) |   | $ | 106,220 |   |   | $ | 155,477 |   |
|                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See      notes to consolidated financial statements.                                                                                                                                                                                      |   |

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| P.A.M. TRANSPORTATION SERVICES, INC. AND      SUBSIDIARIES CONSOLIDATED      STATEMENTS OF CASH FLOWSYEARS      ENDED DECEMBER 31, 2008, 2007 AND 2006(in      thousands) |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                           |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| OPERATING      ACTIVITIES:                                                                                                                                                     |   |   |   |   |   |   |   |   |   |
| Net      (loss) income                                                                                                                                                         |   | $ | (18,765 | ) |   | $ | 2,653 |   |   | $ | 17,964 |   |
| Adjustments      to reconcile net (loss) income to net cash provided by operating      activities:                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation      and amortization                                                                                                                                             |   |   | 37,477 |   |   |   | 38,759 |   |   |   | 33,929 |   |
| Goodwill      impairment charge                                                                                                                                                |   |   | 15,413 |   |   |   | - |   |   |   | - |   |
| Bad      debt expense                                                                                                                                                          |   |   | 295 |   |   |   | 573 |   |   |   | 310 |   |
| Stock      compensation—net of excess tax benefits                                                                                                                       |   |   | 102 |   |   |   | 118 |   |   |   | 441 |   |
| Non-compete      agreement amortization—net of payments                                                                                                                  |   |   | (17 | ) |   |   | - |   |   |   | - |   |
| Provision      for deferred income taxes                                                                                                                                       |   |   | (10,929 | ) |   |   | 1,749 |   |   |   | 2,305 |   |
| Reclassification      of unrealized loss on marketable equity securities                                                                                                       |   |   | 5,227 |   |   |   | 95 |   |   |   | 120 |   |
| Gain      (loss) on sale of marketable equity securities                                                                                                                       |   |   | 656 |   |   |   | (1,071 | ) |   |   | (30 | ) |
| (Gain)      loss on sale or disposal of equipment                                                                                                                              |   |   | 952 |   |   |   | (48 | ) |   |   | 47 |   |
| Changes      in operating assets and liabilities:                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts      receivable                                                                                                                                                       |   |   | 14,505 |   |   |   | 2,585 |   |   |   | 3,685 |   |
| Prepaid      expenses, inventories, and other assets                                                                                                                           |   |   | 5,639 |   |   |   | (113 | ) |   |   | 440 |   |
| Income      taxes refundable (payable)                                                                                                                                         |   |   | 2,574 |   |   |   | (1,696 | ) |   |   | (202 | ) |
| Trade      accounts payable                                                                                                                                                    |   |   | (11,007 | ) |   |   | 1,089 |   |   |   | 2,219 |   |
| Accrued      expenses                                                                                                                                                          |   |   | (1,477 | ) |   |   | 496 |   |   |   | (525 | ) |
| Net      cash provided by operating activities                                                                                                                                 |   |   | 40,645 |   |   |   | 45,189 |   |   |   | 60,703 |   |
|                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| INVESTING      ACTIVITIES:                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchases      of property and equipment                                                                                                                                       |   |   | (60,218 | ) |   |   | (76,166 | ) |   |   | (53,514 | ) |
| Proceeds      from disposition of equipment                                                                                                                                    |   |   | 11,398 |   |   |   | 22,273 |   |   |   | 11,987 |   |
| Changes      in restricted cash                                                                                                                                                |   |   | 4,042 |   |   |   | (4,073 | ) |   |   | - |   |
| Sales      of marketable equity securities                                                                                                                                     |   |   | 611 |   |   |   | 1,622 |   |   |   | 85 |   |
| Purchases      of marketable equity securities                                                                                                                                 |   |   | (4,154 | ) |   |   | (5,389 | ) |   |   | (1,288 | ) |
| Net      cash used in investing activities                                                                                                                                     |   |   | (48,321 | ) |   |   | (61,733 | ) |   |   | (42,730 | ) |
|                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| FINANCING      ACTIVITIES:                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowings      under line of credit                                                                                                                                           |   |   | 546,144 |   |   |   | 508,076 |   |   |   | 446,221 |   |
| Repayments      under line of credit                                                                                                                                           |   |   | (585,592 | ) |   |   | (484,322 | ) |   |   | (463,967 | ) |
| Borrowings      of long-term debt                                                                                                                                              |   |   | 53,470 |   |   |   | 2,067 |   |   |   | 1,996 |   |
| Repayments      of long-term debt                                                                                                                                              |   |   | (8,839 | ) |   |   | (2,704 | ) |   |   | (2,682 | ) |
| Borrowings      under margin account                                                                                                                                           |   |   | 19,800 |   |   |   | - |   |   |   | - |   |
| Repayments      under margin account                                                                                                                                           |   |   | (12,929 | ) |   |   | - |   |   |   | - |   |
| Repurchases      of common stock                                                                                                                                               |   |   | (3,927 | ) |   |   | (7,331 | ) |   |   | - |   |
| Stock      compensation excess tax benefits                                                                                                                                    |   |   | - |   |   |   | 5 |   |   |   | 70 |   |
| Exercise      of stock options                                                                                                                                                 |   |   | - |   |   |   | 120 |   |   |   | 300 |   |
| Net      cash provided by (used in) financing activities                                                                                                                       |   |   | 8,127 |   |   |   | 15,911 |   |   |   | (18,062 | ) |
|                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                                                                                      |   |   | 451 |   |   |   | (633 | ) |   |   | (89 | ) |
|                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS—Beginning of year                                                                                                                         |   |   | 407 |   |   |   | 1,040 |   |   |   | 1,129 |   |
|                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS—End of year                                                                                                                               |   | $ | 858 |   |   | $ | 407 |   |   | $ | 1,040 |   |
|                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURES OF CASH FLOW INFORMATION—                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      paid during the period for:                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                                                                                                                                                                       |   | $ | 2,430 |   |   | $ | 2,410 |   |   | $ | 1,481 |   |
| Income      taxes                                                                                                                                                              |   | $ | 303 |   |   | $ | 1,976 |   |   | $ | 10,061 |   |
|                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| NONCASH      INVESTING AND FINANCING ACTIVITIES—                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchases      of revenue equipment included in accounts payable                                                                                                               |   | $ | 5,951 |   |   | $ | - |   |   | $ | 14,276 |   |
|                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| See      notes to consolidated financial statements.                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |

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P.A.

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

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| 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     | 5-40      years           |

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

|                                     |   | 2008                |   |   | 2007   |   |
|------------------------------------------|--------|---------------------|--------|--------|--------|--------|
|                                     |   | (in      thousands) |   |
|                                     |   |                |   |   |   |   |
| Billed                                   |   | $                   | 41,247 |   |   | $      | 53,439 |   |
| Unbilled                                 |   |                | 4,724  |   |   |   | 6,849 |   |
| Allowance      for doubtful accounts     |   |                | (2,156 | )      |   |   | (1,891 | ) |
|                                     |   |                |   |   |   |   |   |   |
| Total      accounts receivable—net |   | $                   | 43,815 |   |   | $      | 58,397 |   |

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|                                 |   | 2008                |   |   | 2007   |   |   | 2006   |   |
|--------------------------------------|--------|---------------------|--------|--------|--------|--------|--------|--------|--------|
|                                 |   | (in      thousands) |   |
|                                 |   |                |   |   |   |   |   |   |   |
| Balance—beginning      of year |   | $                   | 1,891  |   |   | $      | 1,457  |   |   | $ | 2,030 |   |
| Provision      for bad debts         |   |                | 353    |   |   |   | 607    |   |   |   | 354 |   |
| Charge-offs                          |   |                | (104   | )      |   |   | (361   | )      |   |   | (960 | ) |
| Recoveries                           |   |                | 16     |   |   |   | 188    |   |   |   | 33 |   |
| Balance—end      of year       |   | $                   | 2,156  |   |   | $      | 1,891  |   |   | $ | 1,457 |   |

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

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|                                              |   | 2008                |   |   | 2007       |   |
|---------------------------------------------------|--------|---------------------|--------|--------|------------|--------|
|                                              |   | (in      thousands) |   |
|                                              |   |                |   |   | Unrealized |   |   |   |   |   | Unrealized |   |
|                                              |   | Fair      Value     |   |   | Losses     |   |   | Fair      Value |   |   | Losses |   |
|                                              |   |                |   |   |       |   |   |   |   |   |   |   |
| Equity      securities – Available for sale |   | $                   | 4,775  |   |       | $      | 1,237 |   |   | $ | 5,308 |   |   | $ | 1,541 |   |
| Equity      securities – Trading            |   |                | 372    |   |       |   | 67 |   |   |   | 409 |   |   |   | 31 |   |
|                                              |   |                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Totals                                            |   | $                   | 5,147  |   |       | $      | 1,304 |   |   | $ | 5,717 |   |   | $ | 1,572 |   |

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

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|                             |   | 2008                |    |   | 2007   |   |   | 2006   |   |
|----------------------------------|--------|---------------------|---------|--------|--------|--------|--------|--------|--------|
|                             |   | (in      thousands) |    |
|                             |   |                |    |   |   |   |   |   |   |
| Goodwill,      beginning of year |   | $                   | 15,413  |   |   | $      | 15,413 |   |   | $ | 15,413 |   |
| Goodwill      acquired           |   |                | -       |   |   |   | -      |   |   |   | - |   |
| Goodwill      impairment         |   |                | (15,413 | )      |   |   | -      |   |   |   | - |   |
|                             |   |                |    |   |   |   |   |   |   |   |   |   |
| Goodwill—end      of year  |   | $                   | -       |   |   | $      | 15,413 |   |   | $ | 15,413 |   |

|                                       |   | 2008                |   |   | 2007   |   |
|--------------------------------------------|--------|---------------------|--------|--------|--------|--------|
|                                       |   | (in      thousands) |   |
|                                       |   |                |   |   |   |   |
| Non-compete      agreements, original cost |   | $                   | 1,000  |   |   | $      | 1,000 |   |
| Accumulated      amortization              |   |                | (1,000 | )      |   |   | (983 | ) |
|                                       |   |                |   |   |   |   |   |   |
| Non-compete      agreements—net      |   | $                   | -      |   |   | $      | 17 |   |

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

|                                              |   | 2008                |   |   | 2007   |   |
|---------------------------------------------------|--------|---------------------|--------|--------|--------|--------|
|                                              |   | (in      thousands) |   |
|                                              |   |                |   |   |   |   |
| Payroll                                           |   | $                   | 1,039  |   |   | $      | 1,818 |   |
| Accrued      vacation                             |   |                | 1,932  |   |   |   | 1,966 |   |
| Taxes—other      than income                |   |                | 2,174  |   |   |   | 2,598 |   |
| Interest                                          |   |                | 122    |   |   |   | 123 |   |
| Driver      escrows                               |   |                | 938    |   |   |   | 1,023 |   |
| Margin      account borrowings                    |   |                | 6,871  |   |   |   | - |   |
| Self-insurance      claims reserves               |   |                | 2,608  |   |   |   | 2,795 |   |
|                                              |   |                |   |   |   |   |   |   |
| Total      accrued expenses and other liabilities |   | $                   | 15,684 |   |   | $      | 10,323 |   |

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

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

|                                                         |   | 2008                |    |   | 2007   |   |
|--------------------------------------------------------------|--------|---------------------|---------|--------|--------|--------|
|                                                         |   | (in      thousands) |    |
| Line      of credit with a bank—due May 31, 2009, and  |   |                |    |   |   |   |
| collateralized      by accounts receivable (1)               |   | $                   | 3,744   |   |   | $      | 28,192 |   |
| Line      of credit with a bank—due June 30, 2008, and |   |                |    |   |   |   |   |   |
| collateralized      by revenue equipment (2)                 |   |                | -       |   |   |   | 15,000 |   |
| Equipment      financing (3)                                 |   |                | 45,676  |   |   |   | - |   |
| Note      payable (4)                                        |   |                | 980     |   |   |   | 1,767 |   |
| Other      (5)                                               |   |                | 1,020   |   |   |   | 1,124 |   |
| Other      (6)                                               |   |                | -       |   |   |   | 154 |   |
| Total      long-term debt                                    |   | $                   | 51,420  |   |   | $      | 46,237 |   |
| Less      current maturities                                 |   |                | (15,928 | )      |   |   | (2,065 | ) |
|                                                         |   |                |    |   |   |   |   |   |
| Long-term      debt—net of current maturities          |   | $                   | 35,492  |   |   | $      | 44,172 |   |

| (1)   | 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 first day of the month plus      1.25% (3.15% at December 31, 2008). Monthly payments of interest are      required under this agreement. Also, under the terms of the agreement the      Company must have (a) a debt to equity ratio of no more than 2:1, and (b)      maintain a tangible net worth of at least $125 million. The Company was in      compliance with all provisions of the agreement at December 31,      2008. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Matured      line of credit agreement with a bank which provided for maximum borrowings      of $30.0 million through the maturity date of June 30, 2008. The Company      did not renew the line of credit. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Equipment      financings consist of installment obligations for revenue equipment      purchases, payable in various monthly installments with various maturity      dates through January 2012, at a weighted average interest rate of 4.80%      and collateralized by revenueequipment. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | 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 and secured by a letter of credit held by a    bank. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (5)   | 3.85%      note to insurance premium finance company at December 31, 2008 with an      original face amount of $1,740,528, payable in monthly installments of      $147,615 through August 2009. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | 5.23%      note to insurance premium finance company at December 31, 2007 with an      original face amount of $154,023, payable in monthly installments of      $19,547 through August 2008. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | (in      thousands) |   |
|--------|--------|---------------------|--------|
|   |   |                |   |
| 2009   |   | $                   | 15,928 |   |
| 2010   |   |                | 12,688 |   |
| 2011   |   |                | 18,868 |   |
| 2012   |   |                | 3,936  |   |
| 2013   |   |                | -      |   |
|   |   |                |   |   |
| Total  |   | $                   | 51,420 |   |

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

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| 9. | COMPREHENSIVE      INCOME (LOSS) |
|----|----------------------------------|

|                                                 |   | 2008                |    |   | 2007   |   |   | 2006   |   |
|------------------------------------------------------|--------|---------------------|---------|--------|--------|--------|--------|--------|--------|
|                                                 |   | (in      thousands) |    |
|                                                 |   |                |    |   |   |   |   |   |   |
| Net      (loss) income                               |   | $                   | (18,765 | )      |   | $      | 2,653  |   |   | $ | 17,964 |   |
|                                                 |   |                |    |   |   |   |   |   |   |   |   |   |
| Other      comprehensive income (loss):              |   |                |    |   |   |   |   |   |   |   |   |   |
| Reclassification      adjustment for realized losses |   |                |    |   |   |   |   |   |   |   |   |   |
| (gains)      on marketable securities, included      |   |                |    |   |   |   |   |   |   |   |   |   |
| in      net income, net of income taxes              |   |                | 11      |   |   |   | (359   | )      |   |   | - |   |
| Reclassification      adjustment for losses on       |   |                |    |   |   |   |   |   |   |   |   |   |
| derivative      instruments included in net income   |   |                |    |   |   |   |   |   |   |   |   |   |
| accounted      for as hedges, net of income taxes    |   |                | -       |   |   |   | -      |   |   |   | 18 |   |
| Reclassification      adjustment for unrealized      |   |                |    |   |   |   |   |   |   |   |   |   |
| losses      on marketable securities, included in    |   |                |    |   |   |   |   |   |   |   |   |   |
| net      income, net of income taxes                 |   |                | 3,214   |   |   |   | 55     |   |   |   | 53 |   |
| Change      in fair value of interest rate           |   |                |    |   |   |   |   |   |   |   |   |   |
| swap      agreements, net of income taxes            |   |                | -       |   |   |   | -      |   |   |   | 1 |   |
| Change      in fair value of marketable              |   |                |    |   |   |   |   |   |   |   |   |   |
| securities,      net of income taxes                 |   |                | (4,535  | )      |   |   | (917   | )      |   |   | 1,349 |   |
|                                                 |   |                |    |   |   |   |   |   |   |   |   |   |
| Total      comprehensive (loss) income               |   | $                   | (20,075 | )      |   | $      | 1,432  |   |   | $ | 19,385 |   |

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| 10. | SIGNIFICANT      CUSTOMERS AND INDUSTRYCONCENTRATION |
|-----|------------------------------------------------------|

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

|                                 |   | 2008                |   |   | 2007      |   |
|--------------------------------------|--------|---------------------|--------|--------|-----------|--------|
|                                 |   | (in      thousands) |   |
|                                 |   | Current             |   |   | Long-Term |   |   | Current |   |   | Long-Term |   |
|                                 |   |                |   |   |      |   |   |   |   |   |   |   |
| Deferred      tax liabilities:       |   |                |   |   |      |   |   |   |   |   |   |   |
| Property      and equipment          |   | $                   | -      |   |      | $      | 60,011 |   |   | $ | - |   |   | $ | 52,062 |   |
| Unrealized      gains on securities  |   |                | 345    |   |      |   | - |   |   |   | 1,423 |   |   |   | - |   |
| Prepaid      expenses and other      |   |                | 3,584  |   |      |   | - |   |   |   | 5,650 |   |   |   | 3,428 |   |
|                                 |   |                |   |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Total      deferred tax liabilities  |   |                | 3,929  |   |      |   | 60,011 |   |   |   | 7,073 |   |   |   | 55,490 |   |
|                                 |   |                |   |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Deferred      tax assets:            |   |                |   |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Allowance      for doubtful accounts |   |                | 801    |   |      |   | - |   |   |   | 718 |   |   |   | - |   |
| Alternative      minimum tax credit  |   |                | -      |   |      |   | 447 |   |   |   | - |   |   |   | 481 |   |
| Compensated      absences            |   |                | 597    |   |      |   | - |   |   |   | 630 |   |   |   | - |   |
| Self-insurance      allowances       |   |                | 248    |   |      |   | - |   |   |   | 492 |   |   |   | - |   |
| Share-based      compensation        |   |                | -      |   |      |   | 328 |   |   |   | - |   |   |   | 289 |   |
| Goodwill                             |   |                | -      |   |      |   | 1,161 |   |   |   | - |   |   |   | - |   |
| Marketable      equity securities    |   |                | 2,101  |   |      |   | - |   |   |   | - |   |   |   | - |   |
| Net      operating loss carryover    |   |                | -      |   |      |   | 10,279 |   |   |   | - |   |   |   | 722 |   |
| Non-competition      agreement       |   |                | -      |   |      |   | 412 |   |   |   | - |   |   |   | 494 |   |
| Other                                |   |                | 25     |   |      |   | 30 |   |   |   | 116 |   |   |   | - |   |
|                                 |   |                |   |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Total      deferred tax assets       |   |                | 3,772  |   |      |   | 12,657 |   |   |   | 1,956 |   |   |   | 1,986 |   |
|                                 |   |                |   |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Net      deferred tax liability      |   | $                   | 157    |   |      | $      | 47,354 |   |   | $ | 5,117 |   |   | $ | 53,504 |   |

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|                              |   | 2008                |    |   | 2007    |   |   | 2006   |   |
|-----------------------------------|--------|---------------------|---------|--------|---------|--------|--------|--------|--------|
|                              |   | (in      thousands) |    |
|                              |   | Amount              |    |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |
|                              |   |                |    |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      tax at the            |   |                |    |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| statutory      federal rate       |   | $                   | (9,989  | )      |    |   | 34.0   |   |   | $ | 1,571 |   |   |   | 34.0 |   |   | $ | 10,513 |   |   |   | 35.0 |   |
| Nondeductible      expense        |   |                | 923     |   |    |   | (3.1   | )      |   |   | 381 |   |   |   | 8.3 |   |   |   | 378 |   |   |   | 1.3 |   |
| State      income taxes—net |   |                |    |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| of      federal benefit           |   |                | (1,549  | )      |    |   | 5.2    |   |   |   | 14 |   |   |   | 0.3 |   |   |   | 1,182 |   |   |   | 3.9 |   |
| Total      income taxes           |   | $                   | (10,615 | )      |    |   | 36.1   |   |   | $ | 1,966 |   |   |   | 42.6 |   |   | $ | 12,073 |   |   |   | 40.2 |   |

|                          |   | 2008                |    |   | 2007   |   |   | 2006   |   |
|-------------------------------|--------|---------------------|---------|--------|--------|--------|--------|--------|--------|
|                          |   | (in      thousands) |    |
| Current:                      |   |                |    |   |   |   |   |   |   |
| Federal                       |   | $                   | (26     | )      |   | $      | 305    |   |   | $ | 8,397 |   |
| State                         |   |                | 340     |   |   |   | (88    | )      |   |   | 1,371 |   |
|                          |   |                | 314     |   |   |   | 217    |   |   |   | 9,768 |   |
| Deferred:                     |   |                |    |   |   |   |   |   |   |   |   |   |
| Federal                       |   |                | (8,865  | )      |   |   | 1,295  |   |   |   | 1,768 |   |
| State                         |   |                | (2,064  | )      |   |   | 454    |   |   |   | 537 |   |
|                          |   |                | (10,929 | )      |   |   | 1,749  |   |   |   | 2,305 |   |
|                          |   |                |    |   |   |   |   |   |   |   |   |   |
| Total      income tax expense |   | $                   | (10,615 | )      |   | $      | 1,966  |   |   | $ | 12,073 |   |

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

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|                                              |   | SharesUnderOption |    |   | Weighted-AverageExercise      Price |   |
|---------------------------------------------------|--------|-------------------|---------|--------|-------------------------------------|--------|
|                                              |   |              |    |   |                                |   |
| Outstanding—January      1, 2006:           |   |              | 286,500 |   |                                | $      | 22.22 |   |
| Granted                                           |   |              | 16,000  |   |                                |   | 26.73 |   |
| Exercised                                         |   |              | (18,000 | )      |                                |   | 16.67 |   |
|                                              |   |              |    |   |                                |   |   |   |
| Outstanding—December      31, 2006:         |   |              | 284,500 |   |                                | $      | 22.83 |   |
| Granted                                           |   |              | 16,000  |   |                                |   | 22.92 |   |
| Exercised                                         |   |              | (6,000  | )      |                                |   | 19.95 |   |
| Canceled                                          |   |              | (46,000 | )      |                                |   | 23.34 |   |
|                                              |   |              |    |   |                                |   |   |   |
| Outstanding—December      31, 2007:         |   |              | 248,500 |   |                                | $      | 22.81 |   |
| Granted                                           |   |              | 16,000  |   |                                |   | 14.98 |   |
| Canceled                                          |   |              | (10,000 | )      |                                |   | 22.68 |   |
|                                              |   |              |    |   |                                |   |   |   |
| Outstanding—December      31, 2008:         |   |              | 254,500 |   |                                | $      | 22.32 |   |
|                                              |   |              |    |   |                                |   |   |   |
| Options      exercisable—December 31, 2008: |   |              | 254,500 |   |                                | $      | 22.32 |   |

|                                   | 2008                         | 2007                         | 2006                         |
|----------------------------------------|------------------------------|------------------------------|------------------------------|
|                                   |                         |                         |                         |
| Dividend      yield                    | 0%                           | 0%                           | 0%                           |
| Volatility      range                  | 36.67%—38.54%          | 37.34%—38.54%          | 33.34%—38.54%          |
| Risk-free      rate range              | 2.50%—4.38%            | 4.38%—4.48%            | 4.38%—5.02%            |
| Expected      life                     | 4.3      years—5 years | 2.5      years—5 years | 2.5      years—5 years |
| Fair      value of options (per share) | $4.98—$8.89            | $6.32—$9.45            | $6.93—$9.45            |

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|                                                                                                                                                                                                                                                                                      |   | Shares      Under Option |    |   | Weighted-      Average Exercise Price |   |   | Weighted-      Average Remaining Contractual Term |   |   | Aggregate      Intrinsic Value* |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|---------|--------|---------------------------------------|--------|--------|---------------------------------------------------|--------|--------|---------------------------------|--------|
|                                                                                                                                                                                                                                                                                      |   |                     |    |   | (per      share)                      |   |   | (in      years)                                   |   |   |                            |   |
| Outstanding      at January 1, 2008                                                                                                                                                                                                                                                       |   |                     | 248,500 |   |                                  | $      | 22.81  |                                              |   |   |                            |   |   |   |
| Granted                                                                                                                                                                                                                                                                                   |   |                     | 16,000  |   |                                  |   | 14.98  |                                              |   |   |                            |   |   |   |
| Canceled/forfeited/expired                                                                                                                                                                                                                                                                |   |                     | (10,000 | )      |                                  |   | 22.68  |                                              |   |   |                            |   |   |   |
| Outstanding      at December 31, 2008                                                                                                                                                                                                                                                     |   |                     | 254,500 |   |                                  | $      | 22.32  |                                              |   |   | 3.4                             |   |   | $ | - |   |
|                                                                                                                                                                                                                                                                                      |   |                     |    |   |                                  |   |   |                                              |   |   |                            |   |   |   |   |   |
| Fully      vested and exercisable      at December 31, 2008                                                                                                                                                                                                                               |   |                     | 254,500 |   |                                  | $      | 22.32  |                                              |   |   | 3.4                             |   |   | $ | - |   |
| ___________________________                                                                                                                                                                                                                                                               |   |                     |    |   |                                  |   |   |                                              |   |   |                            |   |   |   |   |   |
| *      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, 2008, was $7.00. |   |

|                                |   | Number      of Options |    |   | Weighted-      Average Grant Date Fair Value |   |
|-------------------------------------|--------|------------------------|---------|--------|----------------------------------------------|--------|
|                                |   |                   |    |   |                                         |   |
| Nonvested      at January 1, 2008   |   |                   | -       |   |                                         | $      | - |   |
| Granted                             |   |                   | 16,000  |   |                                         |   | 4.98 |   |
| Vested                              |   |                   | (16,000 | )      |                                         |   | 4.98 |   |
| Nonvested      at December 31, 2008 |   |                   | -       |   |                                         | $      | - |   |
|                                |   |                   |    |   |                                         |   |   |   |

| Exercise      Price |   | Shares      Under Outstanding Options |   | Weighted-Average      Remaining Contractual Term |   | Shares      Under Exercisable Options |
|---------------------|--------|---------------------------------------|--------|--------------------------------------------------|--------|---------------------------------------|
|                |   |                                  |   | (in      years)                                  |   |                                  |
| $14.98              |   | 16,000                                |   | 4.2                                              |   | 16,000                                |
| $16.99              |   | 8,000                                 |   | 0.2                                              |   | 8,000                                 |
| $18.27              |   | 10,000                                |   | 1.2                                              |   | 10,000                                |
| $19.88              |   | 12,500                                |   | 3.8                                              |   | 12,500                                |
| $22.92              |   | 14,000                                |   | 3.2                                              |   | 14,000                                |
| $23.22              |   | 180,000                               |   | 3.7                                              |   | 180,000                               |
| $26.73              |   | 14,000                                |   | 2.5                                              |   | 14,000                                |
|                |   | 254,500                               |   | 3.4                                              |   | 254,500                               |

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

|                                                    |   | For      the Year Ended December 31,       |    |
|---------------------------------------------------------|--------|--------------------------------------------|---------|
|                                                    |   | 2008                                       |    |   | 2007 |   |   | 2006 |   |
|                                                    |   | (in      thousands, except per share data) |    |
|                                                    |   |                                       |    |   |   |   |   |   |   |
| Net      (loss) income                                  |   | $                                          | (18,765 | ) |   | $ | 2,653 |   |   | $ | 17,964 |   |
|                                                    |   |                                       |    |   |   |   |   |   |   |   |   |   |
| Basic      weighted average common shares outstanding   |   |                                       | 9,683   |   |   |   | 10,238 |   |   |   | 10,296 |   |
| Dilutive      effect of common stock equivalents        |   |                                       | -       |   |   |   | 1 |   |   |   | 6 |   |
|                                                    |   |                                       |    |   |   |   |   |   |   |   |   |   |
| Diluted      weighted average common shares outstanding |   |                                       | 9,683   |   |   |   | 10,239 |   |   |   | 10,302 |   |
|                                                    |   |                                       |    |   |   |   |   |   |   |   |   |   |
| Basic      (loss) earnings per share                    |   | $                                          | (1.94   | ) |   | $ | 0.26 |   |   | $ | 1.74 |   |
|                                                    |   |                                       |    |   |   |   |   |   |   |   |   |   |
| Diluted      (loss) earnings per share                  |   | $                                          | (1.94   | ) |   | $ | 0.26 |   |   | $ | 1.74 |   |

| 14. | BENEFIT      PLAN |
|-----|-------------------|

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

| 2009   |   | $      | 255,765 |   |
|--------|--------|--------|---------|--------|
| 2010   |   |   | 202,400 |   |
| 2011   |   |   | 187,000 |   |
| 2012   |   |   | 192,000 |   |
| 2013   |   |   | 80,000  |   |
|   |   |   |    |   |
| Total  |   | $      | 917,165 |   |

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

|   | Level      1: |   | Quoted      market prices in active markets for identical assets or      liabilities.                                                                                                                                                                                                                                                                                                                                                                                 |
|--------|---------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Level      2: |   | Inputs      other than Level 1 inputs that are either directly or indirectly      observable such as quoted prices for similar assets or liabilities in      active markets; quoted prices for identical or similar assets or      liabilities in markets that are not active; inputs other than quoted      prices that are observable; or other inputs not directly observable, but      derived principally from, or corroborated by, observable market      data. |
|   |          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Level      3: |   | Unobservable      inputs that are supported by little or no market activity.                                                                                                                                                                                                                                                                                                                                                                                     |

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|                              |   | Total               |   |   | Level      1 |   |   | Level      2 |   |   | Level      3 |   |
|-----------------------------------|--------|---------------------|--------|--------|--------------|--------|--------|--------------|--------|--------|--------------|--------|
|                              |   | (in      thousands) |   |
|                              |   |                |   |   |         |   |   |         |   |   |         |   |
| Marketable      equity securities |   | $                   | 12,540 |   |         | $      | 12,540 |         |   |   | -            |   |   |   | - |   |

|                |   | 2008                |   |   | 2007                      |   |
|---------------------|--------|---------------------|--------|--------|---------------------------|--------|
|                |   | Carrying      Value |   |   | Estimated Fair      Value |   |   | Carrying      Value |   |   | Estimated      Fair Value |   |
|                |   | (in      thousands) |   |
|                |   |                |   |   |                      |   |   |   |   |   |   |   |
| Long-term      debt |   | $                   | 47,676 |   |                      | $      | 47,432 |   |   | $ | 3,045 |   |   | $ | 3,032 |   |

| 17. | RELATED      PARTY TRANSACTIONS |
|-----|---------------------------------|

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| 18. | QUARTERLY      RESULTS OF OPERATIONS (UNAUDITED) |
|-----|--------------------------------------------------|

|                                     |   | 2008                                       |    |
|------------------------------------------|--------|--------------------------------------------|---------|
|                                     |   | Three      Months Ended                    |    |
|                                     |   | March      31                              |    |   | June      30 |   |   | September      30 |   |   | December      31 |   |
|                                     |   | (in      thousands, except per share data) |    |
|                                     |   |                                       |    |   |   |   |   |   |   |   |   |   |
| Operating      revenues                  |   | $                                          | 105,820 |   |   | $ | 110,930 |   |   | $ | 105,958 |   |   | $ | 84,014 |   |
| Operating      expenses                  |   |                                       | 109,786 |   |   |   | 112,460 |   |   |   | 107,240 |   |   |   | 99,190 |   |
|                                     |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      (loss) income             |   |                                       | (3,966  | ) |   |   | (1,530 | ) |   |   | (1,282 | ) |   |   | (15,176 | ) |
| Non-operating      (expense) income      |   |                                       | (206    | ) |   |   | (14 | ) |   |   | (3,377 | ) |   |   | (1,400 | ) |
| Interest      expense                    |   |                                       | 568     |   |   |   | 532 |   |   |   | 614 |   |   |   | 714 |   |
| Income      tax (benefit) expense        |   |                                       | (1,912  | ) |   |   | (744 | ) |   |   | (2,092 | ) |   |   | (5,866 | ) |
|                                     |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      (loss) income                   |   | $                                          | (2,828  | ) |   | $ | (1,332 | ) |   | $ | (3,181 | ) |   | $ | (11,424 | ) |
|                                     |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      (loss) income per common share: |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                    |   | $                                          | (0.29   | ) |   | $ | (0.14 | ) |   | $ | (0.33 | ) |   | $ | (1.19 | ) |
| Diluted                                  |   | $                                          | (0.29   | ) |   | $ | (0.14 | ) |   | $ | (0.33 | ) |   | $ | (1.19 | ) |
|                                     |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average      common shares outstanding:  |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                    |   |                                       | 9,795   |   |   |   | 9,708 |   |   |   | 9,665 |   |   |   | 9,564 |   |
| Diluted                                  |   |                                       | 9,795   |   |   |   | 9,708 |   |   |   | 9,665 |   |   |   | 9,564 |   |

|                                     |   | 2007                                       |   |
|------------------------------------------|--------|--------------------------------------------|--------|
|                                     |   | Three      Months Ended                    |   |
|                                     |   | March      31                              |   |   | June      30 |   |   | September      30 |   |   | December      31 |   |
|                                     |   | (in      thousands, except per share data) |   |
|                                     |   |                                       |   |   |   |   |   |   |   |   |   |   |
| Operating      revenues                  |   | $                                          | 98,809 |   |   | $ | 106,700 |   |   | $ | 101,171 |   |   | $ | 102,162 |   |
| Operating      expenses                  |   |                                       | 96,475 |   |   |   | 102,528 |   |   |   | 100,688 |   |   |   | 103,785 |   |
|                                     |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income                    |   |                                       | 2,334  |   |   |   | 4,172 |   |   |   | 483 |   |   |   | (1,623 | ) |
| Non-operating      income                |   |                                       | 241    |   |   |   | 167 |   |   |   | 199 |   |   |   | 1,099 |   |
| Interest      expense                    |   |                                       | 487    |   |   |   | 676 |   |   |   | 620 |   |   |   | 670 |   |
| Income      tax expense (benefit)        |   |                                       | 823    |   |   |   | 1,471 |   |   |   | 26 |   |   |   | (354 | ) |
|                                     |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss)                   |   | $                                          | 1,265  |   |   | $ | 2,192 |   |   | $ | 36 |   |   | $ | (840 | ) |
|                                     |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss) per common share: |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                    |   | $                                          | 0.12   |   |   | $ | 0.21 |   |   | $ | 0.00 |   |   | $ | (0.08 | ) |
| Diluted                                  |   | $                                          | 0.12   |   |   | $ | 0.21 |   |   | $ | 0.00 |   |   | $ | (0.08 | ) |
|                                     |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average      common shares outstanding:  |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                    |   |                                       | 10,305 |   |   |   | 10,306 |   |   |   | 10,265 |   |   |   | 10,077 |   |
| Diluted                                  |   |                                       | 10,308 |   |   |   | 10,307 |   |   |   | 10,266 |   |   |   | 10,077 |   |
|                                     |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

Tableof contents

Item 9

Item 9A

----

Tableof contents

Item 9B

|   | None. |
|--------|-------|

----

Tableof contents

Item 10

Item 11

Item 12

|  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     |   |                                                                                                  | 254,500 |   |                                                                             | $      | 22.32  |                                                                                                   |   |   | 702,000 |   |
|                                                            |   |                                                                                                  |    |   |                                                                             |   |   |                                                                                                   |   |   |   |   |
| Equity      Compensation Plans not approved by Security Holders |   |                                                                                                  | -0-     |   |                                                                             |   | -0-    |                                                                                                   |   |   | -0- |   |
|                                                            |   |                                                                                                  |    |   |                                                                             |   |   |                                                                                                   |   |   |   |   |
| Total                                                           |   |                                                                                                  | 254,500 |   |                                                                             | $      | 22.32  |                                                                                                   |   |   | 702,000 |   |

----

Tableof contents

Item 13

Item 14

Item 15

| (a) | Financial      Statements and Schedules. |
|-----|------------------------------------------|

| (1) | Financial      Statements: See Part II, Item 8hereof. |
|-----|-------------------------------------------------------|

| (2) | Financial      Statement Schedules. |
|-----|-------------------------------------|

| (3) | Exhibits. |
|-----|-----------|

----

Tableof contents

| 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, 12/11/07      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 $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)                                                                                                                                                                                    |
|      |   |                                                                                                                                                                                                                                                                                               |
| *4.6      |   | Fourth      Amendment to Loan Agreement dated July 26, 1994 among First Tennessee Bank      National Association, Registrant and P.A.M. Transport, Inc. together with      Promissory Note (Exh. 4.6, 2007 10-K)                                                                                   |
|      |   |                                                                                                                                                                                                                                                                                               |
| *10.1     | (1)    | 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 June 1, 2006      (Exh. 10.2, 7/28/2006 8-K)                                                                                                                                                                            |
|      |   |                                                                                                                                                                                                                                                                                               |
| *10.3     | (1)    | Employment      Agreement between the Registrant and Larry J. Goddard, dated June 1, 2006      (Exh. 10.3, 7/28/2006 8-K)                                                                                                                                                                          |

----

Tableof contents

|                                                                        |   |                                                                                                                                                                             |
|-----------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *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      Incentive Plan (Exh. 10.2, 6/30/2006 10-Q)                                                                                                                        |
|                                                                        |   |                                                                                                                                                                             |
| *10.10                                                                      | (1)    | Consulting      Agreement between the Registrant and Manuel J. Moroun, dated December 6,      2007 (Exh. 10.10, 2007 10-K)                                                       |
|                                                                        |   |                                                                                                                                                                             |
|   21.1                                                            |   | Subsidiaries      of the Registrant                                                                                                                                              |
|                                                                        |   |                                                                                                                                                                             |
|   23.1                                                            |   | Consent      of Grant Thornton 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 Certifications of Chief Executive Officer and Chief Financial      Officer                                                                                     |
|                                                                        |   |                                                                                                                                                                             |
| (1)  Management      contract or compensatory plan orarrangement. |

----

Tableof contents

SIGNATURES

|                                                                                                                                                                                                                         |   | P.A.M.      TRANSPORTATION SERVICES, INC.                  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------|--------|
|                                                                                                                                                                                                                         |   |                                                       |   |
| Dated:      March 13, 2009                                                                                                                                                                                                   | By:    | /s/      Robert W. Weaver                                  |   |
|                                                                                                                                                                                                                         |   | ROBERT      W. WEAVER                                      |   |
|                                                                                                                                                                                                                         |   | President      and Chief Executive Officer                 |   |
|                                                                                                                                                                                                                         |   | (principal      executive officer)                         |   |
|                                                                                                                                                                                                                         |   |                                                       |   |
| Pursuant      to the requirements of the Securities Exchange Act of 1934, this report      has been signed below by the following persons on behalf of the registrant      and in the capacities and on the dates indicated. |   |
|                                                                                                                                                                                                                         |   |                                                       |   |
|                                                                                                                                                                                                                         |   |                                                       |   |
| Dated:      March 13, 2009                                                                                                                                                                                                   | By:    | /s/      Frederick P. Calderone                            |   |
|                                                                                                                                                                                                                         |   | FREDERICK      P. CALDERONE, Director                      |   |
|                                                                                                                                                                                                                         |   |                                                       |   |
| Dated:      March 13, 2009                                                                                                                                                                                                   | By:    | /s/      Frank L. Conner                                   |   |
|                                                                                                                                                                                                                         |   | FRANK      L. CONNER, Director                             |   |
|                                                                                                                                                                                                                         |   |                                                       |   |
| Dated:      March 13, 2009                                                                                                                                                                                                   | By:    | /s/      W. Scott Davis                                    |   |
|                                                                                                                                                                                                                         |   | W.      SCOTT DAVIS, Director                              |   |
|                                                                                                                                                                                                                         |   |                                                       |   |
| Dated:      March 13, 2009                                                                                                                                                                                                   | By:    | /s/      Christopher L. Ellis                              |   |
|                                                                                                                                                                                                                         |   | CHRISTOPHER      L. ELLIS, Director                        |   |
|                                                                                                                                                                                                                         |   |                                                       |   |
| Dated:      March 13, 2009                                                                                                                                                                                                   | By:    | /s/      Larry J. Goddard                                  |   |
|                                                                                                                                                                                                                         |   | LARRY      J. GODDARD                                      |   |
|                                                                                                                                                                                                                         |   | Vice      President-Finance, Chief Financial Officer,      |   |
|                                                                                                                                                                                                                         |   | Secretary      and Treasurer                               |   |
|                                                                                                                                                                                                                         |   | (principal      financial and accounting officer)          |   |
|                                                                                                                                                                                                                         |   |                                                       |   |
| Dated:      March 13, 2009                                                                                                                                                                                                   | By:    | /s/      Manuel J. Moroun                                  |   |
|                                                                                                                                                                                                                         |   | MANUEL      J. MOROUN, Director                            |   |
|                                                                                                                                                                                                                         |   |                                                       |   |
| Dated:      March 13, 2009                                                                                                                                                                                                   | By:    | /s/      Matthew T. Moroun                                 |   |
|                                                                                                                                                                                                                         |   | MATTHEW      T. MOROUN, Director and Chairman of the Board |   |
|                                                                                                                                                                                                                         |   |                                                       |   |
| Dated:      March 13, 2009                                                                                                                                                                                                   | By:    | /s/      Daniel C. Sullivan                                |   |
|                                                                                                                                                                                                                         |   | DANIEL      C. SULLIVAN, Director                          |   |
|                                                                                                                                                                                                                         |   |                                                       |   |
| Dated:      March 13, 2009                                                                                                                                                                                                   | By:    | /s/      Robert W. Weaver                                  |   |
|                                                                                                                                                                                                                         |   | ROBERT      W. WEAVER,                                     |   |
|                                                                                                                                                                                                                         |   | President      and Chief Executive Officer, Director       |   |
|                                                                                                                                                                                                                         |   | (principal      executive officer)                         |   |
|                                                                                                                                                                                                                         |   |                                                       |   |
| Dated:      March 13, 2009                                                                                                                                                                                                   | By:    | /s/      Charles F. Wilkins                                |   |
|                                                                                                                                                                                                                         |   | CHARLES      F. WILKINS, Director                          |   |

----

Tableof 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, 12/11/07      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 $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)                                                                                                                          |

----

Tableof 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)                                                                                                  |
|                                                                        |   |                                                                                                                                                                                                             |
| *4.6                                                                        |   | Fourth      Amendment to Loan Agreement dated July 26, 1994 among First Tennessee Bank      National Association, Registrant and P.A.M. Transport, Inc. together with      Promissory Note (Exh. 4.6, 2007 10-K) |
|                                                                        |   |                                                                                                                                                                                                             |
| *10.1                                                                       | (1)    | 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 June 1, 2006      (Exh. 10.2, 7/28/2006 8-K)                                                                                          |
|                                                                        |   |                                                                                                                                                                                                             |
| *10.3                                                                       | (1)    | 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      Incentive Plan (Exh. 10.2, 6/30/2006 10-Q)                                                                                                                                                        |
|                                                                        |   |                                                                                                                                                                                                             |
| *10.10                                                                      | (1)    | Consulting      Agreement between the Registrant and Manuel J. Moroun, dated December 6,      2007 (Exh. 10.10, 2007 10-K)                                                                                       |
|                                                                        |   |                                                                                                                                                                                                             |
|   21.1                                                            |   | Subsidiaries      of the Registrant                                                                                                                                                                              |
|                                                                        |   |                                                                                                                                                                                                             |
|   23.1                                                            |   | Consent      of Grant Thornton 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 Certifications of Chief Executive Officer and Chief Financial      Officer                                                                                                                     |
|                                                                        |   |                                                                                                                                                                                                             |
| (1)  Management      contract or compensatory plan orarrangement. |