| 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 |   | The      NASDAQ Stock Market, LLC              |

|   | 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 Operation                              |  15 |
| Item 7A | Quantitative and Qualitative Disclosures About Market      Risk                                                                   | 26       |
| Item 8  | Financial Statements and Supplementary    Data                                                                                    | 28       |
| Item 9  | Changes in and Disagreements with Accountants on      Accounting  and Financial Disclosure                              |  55 |
| Item 9A | Controls and Procedures                                                                                                           | 55       |
| Item 9B | Other Information                                                                                                                 | 56       |
|    |                                                                                                                              |     |
|    | PART      III                                                                                                                     |     |
| Item 10 | Directors, Executive Officers and Corporate      Governance                                                                       | 57       |
| Item 11 | Executive Compensation                                                                                                            | 57       |
| Item 12 | Security Ownership of Certain Beneficial Owners and      Management  and Related Stockholder    Matters                 |  57 |
| Item 13 | Certain Relationships and Related Transactions, and      Director Independence                                                    | 58       |
| Item 14 | Principal Accountant Fees and Services                                                                                            | 58       |
|    |                                                                                                                              |     |
|    | PART      IV                                                                                                                      |     |
| Item 15 | Exhibits, Financial Statement Schedules                                                                                           | 58       |
|    |                                                                                                                              |     |
|    | SIGNATURES                                                                                                                        | 61       |
|    |                                                                                                                              |     |
|    | EXHIBIT INDEX                                                                                                                     | 62       |

----

Item 1. Business.

Table of Contents

----

|   | · | 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. |
|--------|--------|-------------------------------------------------------------------------|

Table of Contents

----

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

| · | In      the last few years, many less profitable or undercapitalized carriers have      been forced to consolidate or to exit the  industry. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

Table of Contents

----

Table of Contents

----

Table of Contents

----

|   Name      |   |   Age |   |   Position                                                                 |   |   Years      of service |
|-----------------------|--------|-----------------|--------|--------------------------------------------------------------------------------------|--------|-----------------------------------|
| Robert      W. Weaver |   | 58              |   | President      and Chief Executive Officer                                           |   | 25                                |
| W.      Clif Lawson   |   | 54              |   | Executive      Vice President and Chief Operating Officer                            |   | 23                                |
| Larry      J. Goddard |   | 49              |   | Vice      President - Finance, Chief Financial Officer, Secretary and      Treasurer |   | 20                                |

Table of Contents

----

Table of Contents

----

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; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Table of Contents

----

| · | 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. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

Table of Contents

----

Table of Contents

----

Item 1B. Unresolved StaffComments.

Item 2. Properties.

|  Location                   | Own/Lease | DispatchOffice | MaintenanceFacility | SafetyTraining |
|----------------------------------|-----------|----------------|---------------------|----------------|
| Tontitown,      Arkansas         | Own       | Yes            | Yes                 | Yes            |
| North      Little Rock, Arkansas | Own       | Yes            | Yes                 | No             |
| Jacksonville,      Florida       | Lease     | Yes            | Yes                 | Yes            |
| Breese,      Illinois            | Lease     | Yes            | No                  | No             |
| Effingham,      Illinois         | Lease     | No             | Yes                 | No             |
| Columbia,      Mississippi       | Own       | No             | No                  | No             |
| Parsippany,      New Jersey      | Lease     | 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     | Yes            | Yes                 | No             |
| Irving,      Texas               | Own       | Yes            | Yes                 | Yes            |
| Laredo,      Texas               | Lease     | Yes            | Yes                 | No             |

Item 3. Legal Proceedings.

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

Table of Contents

----

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

|                | 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  |

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

Table of Contents

----

| 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, 2007  | 3,300                                      | $16.47                            | 3,300                                                                                |   | 547,900                                                                             |
| November      1-30, 2007 | 308,100                                    |  15.07                       | 308,100                                                                              |   | 239,800                                                                             |
| December      1-31, 2007 | 111,300                                    |  15.46                       | 111,300                                                                              |   | 128,500                                                                             |
| Total                    | 422,700                                    | $15.18                            | 422,700                                                                              |   | 128,500                                                                             |

Table of Contents

----

Item 6. Selected Financial Data.

|                                                               |   | Year      Ended December 31,                           |    |
|--------------------------------------------------------------------|--------|--------------------------------------------------------|---------|
|                                                               |   | 2007                                                   |    |   | 2006 |   |   | 2005 |   |   | 2004 |   |   | 2003 |   |
|                                                               |   | (in      thousands, except earnings per share amounts) |    |
| Statement      of Operations Data:                                 |   |                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      revenues:                                           |   |                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
|    Operating      revenues, before fuel surcharge   |   | $                                                      | 351,701 |   |   | $ | 351,373 |   |   | $ | 326,353 |   |   | $ | 309,475 |   |   | $ | 293,547 |   |
|    Fuel      surcharge (1)                          |   |                                                   | 57,140  |   |   |   | 48,896 |   |   |   | 34,527 |   |   |   | 15,591 |   |   |   | 7,491 |   |
| Total      operating revenues                                      |   |                                                   | 408,841 |   |   |   | 400,269 |   |   |   | 360,880 |   |   |   | 325,066 |   |   |   | 301,038 |   |
|                                                               |   |                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses:                                           |   |                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Salaries,      wages and benefits                |   |                                                   | 135,606 |   |   |   | 127,539 |   |   |   | 122,005 |   |   |   | 119,519 |   |   |   | 119,350 |   |
|    Fuel      expense (2)                            |   |                                                   | 114,242 |   |   |   | 97,286 |   |   |   | 81,017 |   |   |   | 55,645 |   |   |   | 42,883 |   |
|    Rent      and purchased transportation           |   |                                                   | 38,718  |   |   |   | 43,844 |   |   |   | 39,074 |   |   |   | 38,938 |   |   |   | 35,287 |   |
|    Depreciation      and amortization               |   |                                                   | 38,759  |   |   |   | 33,929 |   |   |   | 31,376 |   |   |   | 30,016 |   |   |   | 26,601 |   |
|    Operating      supplies (1)(2)                   |   |                                                   | 30,845  |   |   |   | 25,682 |   |   |   | 23,114 |   |   |   | 21,718 |   |   |   | 20,358 |   |
|    Operating      taxes and licenses                |   |                                                   | 17,520  |   |   |   | 16,421 |   |   |   | 15,776 |   |   |   | 15,488 |   |   |   | 14,710 |   |
|    Insurance      and claims                        |   |                                                   | 17,591  |   |   |   | 16,389 |   |   |   | 15,992 |   |   |   | 15,820 |   |   |   | 13,500 |   |
|    Communications      and utilities                |   |                                                   | 3,113   |   |   |   | 2,642 |   |   |   | 2,648 |   |   |   | 2,690 |   |   |   | 2,540 |   |
|    Other                                            |   |                                                   | 7,130   |   |   |   | 5,426 |   |   |   | 6,205 |   |   |   | 5,131 |   |   |   | 4,755 |   |
|    (Gain)      loss on sale or disposal of property |   |                                                   | (48     | ) |   |   | 47 |   |   |   | 147 |   |   |   | 915 |   |   |   | 368 |   |
| Total      operating expenses                                      |   |                                                   | 403,476 |   |   |   | 369,205 |   |   |   | 337,354 |   |   |   | 305,880 |   |   |   | 280,352 |   |
| Operating      income                                              |   |                                                   | 5,365   |   |   |   | 31,064 |   |   |   | 23,526 |   |   |   | 19,186 |   |   |   | 20,686 |   |
| Non-operating      income                                          |   |                                                   | 1,707   |   |   |   | 448 |   |   |   | 477 |   |   |   | 464 |   |   |   | 276 |   |
| Interest      expense                                              |   |                                                   | (2,453  | ) |   |   | (1,475 | ) |   |   | (1,881 | ) |   |   | (1,758 | ) |   |   | (1,667 | ) |
| Income      before income taxes                                    |   |                                                   | 4,619   |   |   |   | 30,037 |   |   |   | 22,122 |   |   |   | 17,892 |   |   |   | 19,295 |   |
| Income      taxes                                                  |   |                                                   | 1,966   |   |   |   | 12,073 |   |   |   | 8,983 |   |   |   | 7,304 |   |   |   | 7,805 |   |
| Net      income                                                    |   | $                                                      | 2,653   |   |   | $ | 17,964 |   |   | $ | 13,139 |   |   | $ | 10,588 |   |   | $ | 11,490 |   |
| Earnings      per common share:                                    |   |                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                              |   | $                                                      | 0.26    |   |   | $ | 1.74 |   |   | $ | 1.20 |   |   | $ | 0.94 |   |   | $ | 1.02 |   |
| Diluted                                                            |   | $                                                      | 0.26    |   |   | $ | 1.74 |   |   | $ | 1.20 |   |   | $ | 0.94 |   |   | $ | 1.01 |   |
| Average      common shares outstanding – Basic               |   |                                                   | 10,238  |   |   |   | 10,296 |   |   |   | 10,966 |   |   |   | 11,298 |   |   |   | 11,291 |   |
| Average      common shares outstanding – Diluted(3)          |   |                                                   | 10,239  |   |   |   | 10,302 |   |   |   | 10,976 |   |   |   | 11,324 |   |   |   | 11,326 |   |

| (1)   | In      order to conform to industry practice, during 2004 the Company began to      classify fuel surcharges charged to customers as revenue rather than as a      reduction of operating supplies expense. This reclassification has no      effect on net operating income, net income or earnings per share. The      Company has made corresponding reclassifications to comparative periods      shown. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Because      of the increased impact of fuel costs on the Company’s results of      operations in recent years, during 2006 the Company began to separately      display as a line item “Fuel expense” for amounts paid for fuel which had      previously been aggregated with other operating supplies and included in      the line item “Operating supplies”. This reclassification has no effect on      net operating income, net income or earnings per share. The Company has      made corresponding reclassifications to comparative periods      shown. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Diluted      income per share for 2007, 2006, 2005, 2004 and 2003 assumes the exercise      of stock options to purchase an aggregate of 19,213, 55,738, 22,297,      62,224 and 77,758 shares of common stock,  respectively. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Table of Contents

----

|                                                          |   | At      December 31,         |    |
|---------------------------------------------------------------|--------|------------------------------|---------|
|                                                          |   | 2007                         |    |   | 2006 |   |   | 2005 |   |   | 2004 |   |   | 2003 |   |
| Balance      Sheet Data:                                      |   | (in      thousands)          |    |
| Total      assets                                             |   | $                            | 319,904 |   |   | $ | 314,246 |   |   | $ | 293,441 |   |   | $ | 285,349 |   |   | $ | 264,849 |   |
| Long-term      debt, excluding current portion                |   |                         | 44,172  |   |   |   | 21,205 |   |   |   | 39,693 |   |   |   | 23,225 |   |   |   | 26,740 |   |
| Stockholders'      equity                                     |   |                         | 179,377 |   |   |   | 185,028 |   |   |   | 164,762 |   |   |   | 168,543 |   |   |   | 156,875 |   |
|                                                          |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                          |   | Year      Ended December 31, |    |
|                                                          |   | 2007                         |    |   | 2006 |   |   | 2005 |   |   | 2004 |   |   | 2003 |   |
| Operating      Data:                                          |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      ratio (1)                                      |   |                         | 98.5    | % |   |   | 91.2 | % |   |   | 92.8 | % |   |   | 93.8 | % |   |   | 92.9 | % |
| Average      number of truckloads per week                    |   |                         | 7,849   |   |   |   | 7,200 |   |   |   | 6,946 |   |   |   | 7,278 |   |   |   | 7,105 |   |
| Average      miles per trip                                   |   |                         | 647     |   |   |   | 659 |   |   |   | 680 |   |   |   | 664 |   |   |   | 701 |   |
| Total      miles traveled (in thousands)                      |   |                         | 246,801 |   |   |   | 229,810 |   |   |   | 228,624 |   |   |   | 235,894 |   |   |   | 242,890 |   |
| Average      miles per truck                                  |   |                         | 118,483 |   |   |   | 123,156 |   |   |   | 125,479 |   |   |   | 127,124 |   |   |   | 131,934 |   |
| Average      revenue, before fuel surcharge per truck per day |   | $                            | 695     |   |   | $ | 778 |   |   | $ | 740 |   |   | $ | 684 |   |   | $ | 653 |   |
| Average      revenue, before fuel surcharge per loaded mile   |   | $                            | 1.38    |   |   | $ | 1.43 |   |   | $ | 1.33 |   |   | $ | 1.19 |   |   | $ | 1.13 |   |
| Empty      mile factor                                        |   |                         | 6.5     | % |   |   | 5.9 | % |   |   | 5.5 | % |   |   | 4.7 | % |   |   | 4.5 | % |
|                                                          |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| At      end of period:                                        |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      company-owned/leased trucks                        |   |                         | 2,055   | (2) |   |   | 1,998 | (3) |   |   | 1,792 | (4) |   |   | 1,857 | (5) |   |   | 1,913 | (6) |
| Average      age of trucks (in years)                         |   |                         | 1.75    |   |   |   | 1.55 |   |   |   | 1.43 |   |   |   | 1.70 |   |   |   | 1.94 |   |
| Total      trailers                                           |   |                         | 4,882   |   |   |   | 4,540 |   |   |   | 4,406 |   |   |   | 4,257 |   |   |   | 4,175 |   |
| Average      age of trailers (in years)                       |   |                         | 4.44    |   |   |   | 4.16 |   |   |   | 3.92 |   |   |   | 4.69 |   |   |   | 5.15 |   |
| Number      of employees                                      |   |                         | 3,181   |   |   |   | 3,062 |   |   |   | 3,035 |   |   |   | 2,736 |   |   |   | 2,765 |   |

Item 7.

Table of Contents

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Years      Ended December 31, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 2007                          |   |   | 2006 |   |   | 2005 |   |
| Operating      revenues, before fuel surcharge                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                          | 100.0  | % |   |   | 100.0 | % |   |   | 100.0 | % |
| Operating      expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                          |   |   |   |   |   |   |   |   |   |   |
|    Salaries,      wages and      benefits                                                                                           |   |                          | 42.0   |   |   |   | 40.6 |   |   |   | 41.8 |   |
|    Fuel      expense, net of fuel      surcharge                                                                                    |   |                          | 18.2   |   |   |   | 16.0 |   |   |   | 16.6 |   |
|    Rent      and purchased      transportation                                                                                      |   |                          | 2.5    |   |   |   | 1.7 |   |   |   | 1.2 |   |
|    Depreciation      and      amortization                                                                                          |   |                          | 12.2   |   |   |   | 11.0 |   |   |   | 10.9 |   |
|    Operating      supplies                                                                                                          |   |                          | 9.7    |   |   |   | 8.3 |   |   |   | 8.0 |   |
|    Operating      taxes and      licenses                                                                                           |   |                          | 5.5    |   |   |   | 5.3 |   |   |   | 5.5 |   |
|    Insurance      and      claims                                                                                                   |   |                          | 5.5    |   |   |   | 5.3 |   |   |   | 5.5 |   |
|    Communications      and      utilities                                                                                           |   |                          | 0.9    |   |   |   | 0.8 |   |   |   | 0.9 |   |
|    Other                                                                                                                            |   |                          | 2.0    |   |   |   | 1.6 |   |   |   | 1.8 |   |
|    Loss      on sale or disposal of      property                                                                                   |   |                          | 0.0    |   |   |   | 0.0 |   |   |   | 0.1 |   |
| Total      operating      expenses                                                                                                                 |   |                          | 98.5   |   |   |   | 90.6 |   |   |   | 92.3 |   |
| Operating      income                                                                                                                              |   |                          | 1.5    |   |   |   | 9.4 |   |   |   | 7.7 |   |
| Non-operating      income                                                                                                                          |   |                          | 0.5    |   |   |   | 0.1 |   |   |   | 0.1 |   |
| Interest      expense                                                                                                                              |   |                          | (0.7   | ) |   |   | (0.4 | ) |   |   | (0.5 | ) |
| Income      before income      taxes                                                                                                               |   |                          | 1.3    | % |   |   | 9.1 | % |   |   | 7.3 | % |

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Years      Ended December 31, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 2007                          |   |   | 2006 |   |   | 2005 |   |
| Operating      revenues, before fuel surcharge                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                          | 100.0  | % |   |   | 100.0 | % |   |   | 100.0 | % |
| Operating      expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                          |   |   |   |   |   |   |   |   |   |   |
|    Salaries,      wages and      benefits                                                                                           |   |                          | 6.3    |   |   |   | 5.0 |   |   |   | 5.1 |   |
|    Fuel      expense                                                                                                                |   |                          | 0.0    |   |   |   | 0.0 |   |   |   | 0.0 |   |
|    Rent      and purchased transportation, net of fuel surcharge                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                          | 88.9   |   |   |   | 88.3 |   |   |   | 88.0 |   |
|    Depreciation      and      amortization                                                                                          |   |                          | 0.0    |   |   |   | 0.0 |   |   |   | 0.2 |   |
|    Operating      supplies                                                                                                          |   |                          | 0.0    |   |   |   | 0.0 |   |   |   | 0.0 |   |
|    Operating      taxes and      licenses                                                                                           |   |                          | 0.0    |   |   |   | 0.0 |   |   |   | 0.0 |   |
|    Insurance      and      claims                                                                                                   |   |                          | 0.1    |   |   |   | 0.0 |   |   |   | 0.1 |   |
|    Communications      and      utilities                                                                                           |   |                          | 0.3    |   |   |   | 0.3 |   |   |   | 0.4 |   |
|    Other                                                                                                                            |   |                          | 2.1    |   |   |   | 1.4 |   |   |   | 2.5 |   |
|    Loss      on sale or disposal of      property                                                                                   |   |                          | 0.0    |   |   |   | 0.0 |   |   |   | 0.0 |   |
| Total      operating      expenses                                                                                                                 |   |                          | 97.7   |   |   |   | 95.0 |   |   |   | 96.3 |   |
| Operating      income                                                                                                                              |   |                          | 2.3    |   |   |   | 5.0 |   |   |   | 3.7 |   |
| Non-operating      income                                                                                                                          |   |                          | 0.0    |   |   |   | 0.0 |   |   |   | 0.0 |   |
| Interest      expense                                                                                                                              |   |                          | (0.4   | ) |   |   | (0.4 | ) |   |   | (0.6 | ) |
| Income      before income      taxes                                                                                                               |   |                          | 1.9    | % |   |   | 4.6 | % |   |   | 3.1 | % |

Table of Contents

----

Table of Contents

----

|                                   |   | Quarter      Ended                                  |   |
|----------------------------------------|--------|-----------------------------------------------------|--------|
|                                   |   | Mar.      31,2007                                   |   |   | June      30,2007 |   |   | Sept.      30,2007 |   |   | Dec.      31,2007 |   |   | Mar.      31,2006 |   |   | June      30,2006 |   |   | Sept.      30,2006 |   |   | Dec.      31,2006 |   |
|                                   |   | (unaudited)                                         |   |
|                                   |   | (in      thousands, except earnings per share data) |   |
| Operating      revenues                |   | $                                                   | 98,809 |   |   | $ | 106,700 |   |   | $ | 101,171 |   |   | $ | 102,162 |   |   | $ | 100,525 |   |   | $ | 103,365 |   |   | $ | 99,874 |   |   | $ | 96,505 |   |
| Total      operating expenses          |   |                                                | 96,475 |   |   |   | 102,528 |   |   |   | 100,688 |   |   |   | 103,785 |   |   |   | 91,473 |   |   |   | 94,375 |   |   |   | 94,202 |   |   |   | 89,154 |   |
| Operating      income (loss)           |   |                                                | 2,334  |   |   |   | 4,172 |   |   |   | 483 |   |   |   | (1,623 | ) |   |   | 9,052 |   |   |   | 8,990 |   |   |   | 5,672 |   |   |   | 7,351 |   |
| Net      income (loss)                 |   |                                                | 1,265  |   |   |   | 2,192 |   |   |   | 36 |   |   |   | (840 | ) |   |   | 5,183 |   |   |   | 5,241 |   |   |   | 3,268 |   |   |   | 4,272 |   |
| Earnings      (loss) per common share: |   |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                  |   | $                                                   | 0.12   |   |   | $ | 0.21 |   |   | $ | 0.00 |   |   | $ | (0.08 | ) |   | $ | 0.50 |   |   | $ | 0.51 |   |   | $ | 0.32 |   |   | $ | 0.41 |   |
| Diluted                                |   | $                                                   | 0.12   |   |   | $ | 0.21 |   |   | $ | 0.00 |   |   | $ | (0.08 | ) |   | $ | 0.50 |   |   | $ | 0.51 |   |   | $ | 0.32 |   |   | $ | 0.41 |   |

Table of Contents

----

Table of Contents

----

|                      |   | Payments due by period(in      thousands) |   |
|---------------------------|--------|-------------------------------------------|--------|
|                      |   | Total                                     |   |   | Less      than1 year |   |   | 1      to 3Years |   |   | 4      to 5Years |   |   | More      than5 Years |   |
|                      |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term      debt       |   | $                                         | 46,237 |   |   | $ | 2,065 |   |   | $ | 44,172 |   |   | $ | - |   |   | $ | - |   |
| Operating      leases (1) |   |                                      | 1,741  |   |   |   | 520 |   |   |   | 762 |   |   |   | 379 |   |   |   | 80 |   |
| Total                     |   | $                                         | 47,978 |   |   | $ | 2,585 |   |   | $ | 44,934 |   |   | $ | 379 |   |   | $ | 80 |   |
|                      |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

Table of Contents

----

Table of Contents

----

Item 7A

Table of Contents

----

Table of Contents

----

Item 8.

Report of Independent Registered Public Accounting Firm –Grant Thornton LLP

Consolidated Balance Sheets - December 31, 2007 and2006

Consolidated Statements of Income - Years ended December 31, 2007,2006 and 2005

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

December 31, 2007, 2006 and 2005

Consolidated Statements of Cash Flows - Years ended December 31,2007, 2006 and 2005

Notes to Consolidated FinancialStatements

Table of Contents

----

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTINGFIRM

Table of Contents

----

| P.A.M. TRANSPORTATION SERVICES, INC. AND      SUBSIDIARIES CONSOLIDATED      BALANCE SHEETSDECEMBER      31, 2007 AND 2006(in      thousands, except share and per share data) |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                |   |   |   |   |   |   |
|                                                                                                                                                                                |   |   |   |   |   |   |
| ASSETS                                                                                                                                                                              |   | 2007 |   |   | 2006 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |
| CURRENT      ASSETS:                                                                                                                                                                |   |   |   |   |   |   |
| Cash      and cash equivalents                                                                                                                                                      |   | $ | 407 |   |   | $ | 1,040 |   |
| Accounts      receivable—net:                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Trade                                                                                                                                                                               |   |   | 58,397 |   |   |   | 61,469 |   |
| Other                                                                                                                                                                               |   |   | 5,349 |   |   |   | 1,361 |   |
| Inventories                                                                                                                                                                         |   |   | 905 |   |   |   | 819 |   |
| Prepaid      expenses and deposits                                                                                                                                                  |   |   | 14,978 |   |   |   | 14,928 |   |
| Marketable      equity securities                                                                                                                                                   |   |   | 17,269 |   |   |   | 14,437 |   |
| Income      taxes refundable                                                                                                                                                        |   |   | 2,199 |   |   |   | 498 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Total      current assets                                                                                                                                                           |   |   | 99,504 |   |   |   | 94,552 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| PROPERTY      AND EQUIPMENT:                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Land                                                                                                                                                                                |   |   | 2,674 |   |   |   | 2,674 |   |
| Structures      and improvements                                                                                                                                                    |   |   | 9,795 |   |   |   | 9,383 |   |
| Revenue      equipment                                                                                                                                                              |   |   | 292,133 |   |   |   | 286,933 |   |
| Office      furniture and equipment                                                                                                                                                 |   |   | 7,482 |   |   |   | 6,890 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Total      property and equipment                                                                                                                                                   |   |   | 312,084 |   |   |   | 305,880 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Accumulated      depreciation                                                                                                                                                       |   |   | (107,841 | ) |   |   | (102,566 | ) |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Net      property and equipment                                                                                                                                                     |   |   | 204,243 |   |   |   | 203,314 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| OTHER      ASSETS:                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Goodwill                                                                                                                                                                            |   |   | 15,413 |   |   |   | 15,413 |   |
| Non-compete      agreements, net                                                                                                                                                    |   |   | 17 |   |   |   | 217 |   |
| Other                                                                                                                                                                               |   |   | 727 |   |   |   | 750 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Total      other assets                                                                                                                                                             |   |   | 16,157 |   |   |   | 16,380 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| TOTAL      ASSETS                                                                                                                                                                   |   | $ | 319,904 |   |   | $ | 314,246 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                |   |   |   |   |   | (Continued) |   |

Table of Contents

----

| CONSOLIDATED      BALANCE SHEETSDECEMBER      31, 2007 AND 2006(in      thousands, except share and per share data)                                                                                                                          |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                         |   |   |   |   |   |   |
|                                                                                                                                                                                                                                         |   |   |   |   |   |   |
| LIABILITIES      AND SHAREHOLDERS' EQUITY                                                                                                                                                                                                    |   | 2007 |   |   | 2006 |   |
|                                                                                                                                                                                                                                         |   |   |   |   |   |   |
| CURRENT      LIABILITIES:                                                                                                                                                                                                                    |   |   |   |   |   |   |
| Accounts      payable                                                                                                                                                                                                                        |   | $ | 25,346 |   |   | $ | 38,510 |   |
| Accrued      expenses and other liabilities                                                                                                                                                                                                  |   |   | 10,323 |   |   |   | 9,994 |   |
| Current      maturities of long-term debt                                                                                                                                                                                                    |   |   | 2,065 |   |   |   | 1,915 |   |
| Deferred      income taxes—current                                                                                                                                                                                                     |   |   | 5,117 |   |   |   | 5,658 |   |
|                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Total      current liabilities                                                                                                                                                                                                               |   |   | 42,851 |   |   |   | 56,077 |   |
|                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Long-term      debt—less current portion                                                                                                                                                                                               |   |   | 44,172 |   |   |   | 21,205 |   |
| Deferred      income taxes—less current portion                                                                                                                                                                                        |   |   | 53,504 |   |   |   | 51,902 |   |
| Other                                                                                                                                                                                                                                        |   |   | - |   |   |   | 34 |   |
|                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Total      liabilities                                                                                                                                                                                                                       |   |   | 140,527 |   |   |   | 129,218 |   |
|                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| COMMITMENTS      AND CONTINGENCIES (Note 15)                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| 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 11,362,207 shares issued; 9,838,107      and 10,303,607 shares outstanding at December      31, 2007 and December 31, 2006, respectively |   |   | 114 |   |   |   | 114 |   |
| Additional      paid-in capital                                                                                                                                                                                                              |   |   | 77,557 |   |   |   | 77,309 |   |
| Accumulated      other comprehensive income                                                                                                                                                                                                  |   |   | 1,921 |   |   |   | 3,142 |   |
| Treasury      stock, at cost; 1,530,100 and 1,058,600 shares,      respectively                                                                                                                                                         |   |   | (25,200 | ) |   |   | (17,869 | ) |
| Retained      earnings                                                                                                                                                                                                                       |   |   | 124,985 |   |   |   | 122,332 |   |
|                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Total      shareholders’ equity                                                                                                                                                                                                        |   |   | 179,377 |   |   |   | 185,028 |   |
|                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| TOTAL      LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                                                                              |   | $ | 319,904 |   |   | $ | 314,246 |   |
|                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                         |   |   |   |   |   | (Concluded) |   |
| See      notes to consolidated financial statements.                                                                                                                                                                                         |   |

Table of Contents

----

| P.A.M. TRANSPORTATION SERVICES, INC. AND      SUBSIDIARIES CONSOLIDATED      STATEMENTS OF INCOMEYEARS      ENDED DECEMBER 31, 2007, 2006 AND 2005(in      thousands, except per share data) |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                              |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| OPERATING      REVENUES:                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |
| Revenue,      before fuel surcharge                                                                                                                                                               |   | $ | 351,701 |   |   | $ | 351,373 |   |   | $ | 326,353 |   |
| Fuel      surcharge                                                                                                                                                                               |   |   | 57,140 |   |   |   | 48,896 |   |   |   | 34,527 |   |
|                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      operating revenues                                                                                                                                                                     |   |   | 408,841 |   |   |   | 400,269 |   |   |   | 360,880 |   |
|                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING      EXPENSES AND COSTS:                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries,      wages and benefits                                                                                                                                                                 |   |   | 135,606 |   |   |   | 127,539 |   |   |   | 122,005 |   |
| Fuel      expense                                                                                                                                                                                 |   |   | 114,242 |   |   |   | 97,286 |   |   |   | 81,017 |   |
| Rents      and purchased transportation                                                                                                                                                           |   |   | 38,718 |   |   |   | 43,844 |   |   |   | 39,074 |   |
| Depreciation      and amortization                                                                                                                                                                |   |   | 38,759 |   |   |   | 33,929 |   |   |   | 31,376 |   |
| Operating      supplies and expenses                                                                                                                                                              |   |   | 30,845 |   |   |   | 25,682 |   |   |   | 23,114 |   |
| Operating      taxes and licenses                                                                                                                                                                 |   |   | 17,520 |   |   |   | 16,421 |   |   |   | 15,776 |   |
| Insurance      and claims                                                                                                                                                                         |   |   | 17,591 |   |   |   | 16,389 |   |   |   | 15,992 |   |
| Communications      and utilities                                                                                                                                                                 |   |   | 3,113 |   |   |   | 2,642 |   |   |   | 2,648 |   |
| Other                                                                                                                                                                                             |   |   | 7,130 |   |   |   | 5,426 |   |   |   | 6,205 |   |
| (Gain)      loss on sale or disposal of equipment                                                                                                                                                 |   |   | (48 | ) |   |   | 47 |   |   |   | 147 |   |
|                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      operating expenses and costs                                                                                                                                                           |   |   | 403,476 |   |   |   | 369,205 |   |   |   | 337,354 |   |
|                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING      INCOME                                                                                                                                                                             |   |   | 5,365 |   |   |   | 31,064 |   |   |   | 23,526 |   |
|                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| NON-OPERATING      INCOME                                                                                                                                                                         |   |   | 1,707 |   |   |   | 448 |   |   |   | 477 |   |
| INTEREST      EXPENSE                                                                                                                                                                             |   |   | (2,453 | ) |   |   | (1,475 | ) |   |   | (1,881 | ) |
|                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| INCOME      BEFORE INCOME TAXES                                                                                                                                                                   |   |   | 4,619 |   |   |   | 30,037 |   |   |   | 22,122 |   |
|                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| FEDERAL      AND STATE INCOME TAXES:                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                                                                                                                                                                                           |   |   | 217 |   |   |   | 9,768 |   |   |   | 7,572 |   |
| Deferred                                                                                                                                                                                          |   |   | 1,749 |   |   |   | 2,305 |   |   |   | 1,411 |   |
|                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      federal and state income taxes                                                                                                                                                         |   |   | 1,966 |   |   |   | 12,073 |   |   |   | 8,983 |   |
|                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      INCOME                                                                                                                                                                                   |   | $ | 2,653 |   |   | $ | 17,964 |   |   | $ | 13,139 |   |
|                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| EARNINGS      PER COMMON SHARE:                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                                                                                             |   | $ | 0.26 |   |   | $ | 1.74 |   |   | $ | 1.20 |   |
|                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                                                                                                                                                                                           |   | $ | 0.26 |   |   | $ | 1.74 |   |   | $ | 1.20 |   |
|                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| AVERAGE      COMMON SHARES OUTSTANDING:                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                                                                                             |   |   | 10,238 |   |   |   | 10,296 |   |   |   | 10,966 |   |
|                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                                                                                                                                                                                           |   |   | 10,239 |   |   |   | 10,302 |   |   |   | 10,976 |   |
|                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| See      notes to consolidated financial statements.                                                                                                                                              |   |

Table of Contents

----

| P.A.M. TRANSPORTATION SERVICES, INC. AND      SUBSIDIARIES CONSOLIDATED      STATEMENTS OF STOCKHOLDERS’ EQUITY AND OTHER COMPREHENSIVE      INCOMEYEARS      ENDED DECEMBER 31, 2007, 2006 AND 2005(in      thousands) |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                               |   | Common      StockShares      / Amount |   |   | Additional      Paid-In Capital |   |   | Other      Comprehensive Income |   |   | Accumulated      Other Comprehensive Income |   |   | Treasury      Stock |   |   | Retained      Earnings |   |   | Total |   |
|                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE—      January 1, 2005                                                                                                                                                                                                |   |   | 11,303 |   |   | $ | 113 |   |   | $ | 76,050 |   |   |   |   |   | $ | 1,151 |   |   | $ | - |   |   | $ | 91,229 |   |   | $ | 168,543 |   |
|                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Components      of comprehensive income:                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      earnings                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 13,139 |   |   |   |   |   |   |   |   |   |   |   | 13,139 |   |   |   | 13,139 |   |
| Other      comprehensive gain:                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized      gain on hedge,                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net      of tax of $195                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 282 |   |   |   | 282 |   |   |   |   |   |   |   |   |   |   |   | 282 |   |
| Unrealized      gain on marketable                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| securities,      net of tax of $189                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 288 |   |   |   | 288 |   |   |   |   |   |   |   |   |   |   |   | 288 |   |
| Total      comprehensive income                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 13,709 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Treasury      stock repurchases                                                                                                                                                                                                    |   |   | (1,059 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (17,869 | ) |   |   |   |   |   |   | (17,869 | ) |
| Exercise      of stock options-shares                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| issued      including tax benefits                                                                                                                                                                                                 |   |   | 41 |   |   |   |   |   |   |   | 379 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 379 |   |
|                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE—      December 31, 2005                                                                                                                                                                                              |   |   | 10,285 |   |   |   | 113 |   |   |   | 76,429 |   |   |   |   |   |   |   | 1,721 |   |   |   | (17,869 | ) |   |   | 104,368 |   |   |   | 164,762 |   |
|                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Components      of comprehensive income:                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      earnings                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 17,964 |   |   |   |   |   |   |   |   |   |   |   | 17,964 |   |   |   | 17,964 |   |
| Other      comprehensive gain:                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized      gain on hedge,                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net      of tax of $13                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 19 |   |   |   | 19 |   |   |   |   |   |   |   |   |   |   |   | 19 |   |
| Unrealized      gain on marketable                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| securities,      net of tax of $923                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,402 |   |   |   | 1,402 |   |   |   |   |   |   |   |   |   |   |   | 1,402 |   |
| Total      comprehensive income                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 19,385 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercise      of stock options-shares                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| issued      including tax benefits                                                                                                                                                                                                 |   |   | 18 |   |   |   | 1 |   |   |   | 369 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 370 |   |
| Share-based      compensation                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   | 511 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 511 |   |
|                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE—      December 31, 2006                                                                                                                                                                                              |   |   | 10,303 |   |   |   | 114 |   |   |   | 77,309 |   |   |   |   |   |   |   | 3,142 |   |   |   | (17,869 | ) |   |   | 122,332 |   |   |   | 185,028 |   |
|                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 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 |   |
|                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See      notes to consolidated financial statements.                                                                                                                                                                               |   |

Table of Contents

----

| P.A.M. TRANSPORTATION SERVICES, INC. AND      SUBSIDIARIES CONSOLIDATED      STATEMENTS OF CASH FLOWSYEARS      ENDED DECEMBER 31, 2007, 2006 AND 2005(in      thousands) |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                           |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| OPERATING      ACTIVITIES:                                                                                                                                                     |   |   |   |   |   |   |   |   |   |
| Net      income                                                                                                                                                                |   | $ | 2,653 |   |   | $ | 17,964 |   |   | $ | 13,139 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities:                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation      and amortization                                                                                                                                             |   |   | 38,759 |   |   |   | 33,929 |   |   |   | 31,376 |   |
| Bad      debt expense                                                                                                                                                          |   |   | 573 |   |   |   | 310 |   |   |   | 1,428 |   |
| Stock      compensation—net of excess tax benefits                                                                                                                       |   |   | 118 |   |   |   | 441 |   |   |   | - |   |
| Non-compete      agreement amortization—net of payments                                                                                                                  |   |   | - |   |   |   | - |   |   |   | 37 |   |
| Provision      for deferred income taxes                                                                                                                                       |   |   | 1,749 |   |   |   | 2,305 |   |   |   | 1,411 |   |
| Reclassification      of unrealized loss on marketable equity securities                                                                                                       |   |   | 95 |   |   |   | 120 |   |   |   | 153 |   |
| Gain      on sale of marketable equity securities                                                                                                                              |   |   | (1,071 | ) |   |   | (30 | ) |   |   | - |   |
| (Gain)      loss on sale or disposal of equipment                                                                                                                              |   |   | (48 | ) |   |   | 47 |   |   |   | 147 |   |
| Changes      in operating assets and liabilities:                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts      receivable                                                                                                                                                       |   |   | 2,585 |   |   |   | 3,685 |   |   |   | (19,236 | ) |
| Prepaid      expenses, inventories, and other assets                                                                                                                           |   |   | (113 | ) |   |   | 440 |   |   |   | (40 | ) |
| Income      taxes refundable                                                                                                                                                   |   |   | (1,696 | ) |   |   | (202 | ) |   |   | 528 |   |
| Trade      accounts payable                                                                                                                                                    |   |   | 1,089 |   |   |   | 2,219 |   |   |   | (5,881 | ) |
| Accrued      expenses                                                                                                                                                          |   |   | 496 |   |   |   | (525 | ) |   |   | 679 |   |
|                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      cash provided by operating activities                                                                                                                                 |   |   | 45,189 |   |   |   | 60,703 |   |   |   | 23,741 |   |
|                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| INVESTING      ACTIVITIES:                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchases      of property and equipment                                                                                                                                       |   |   | (76,166 | ) |   |   | (53,514 | ) |   |   | (62,013 | ) |
| Proceeds      from sale or disposal of equipment                                                                                                                               |   |   | 22,273 |   |   |   | 11,987 |   |   |   | 22,850 |   |
| Changes      in restricted cash                                                                                                                                                |   |   | (4,073 | ) |   |   | - |   |   |   | - |   |
| Sales      of marketable equity securities                                                                                                                                     |   |   | 1,622 |   |   |   | 85 |   |   |   | - |   |
| Purchases      of marketable equity securities                                                                                                                                 |   |   | (5,389 | ) |   |   | (1,288 | ) |   |   | (1,884 | ) |
| Other                                                                                                                                                                          |   |   | - |   |   |   | - |   |   |   | 20 |   |
|                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      cash used in investing activities                                                                                                                                     |   |   | (61,733 | ) |   |   | (42,730 | ) |   |   | (41,027 | ) |
|                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| FINANCING      ACTIVITIES:                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowings      under line of credit                                                                                                                                           |   |   | 508,076 |   |   |   | 446,221 |   |   |   | 422,460 |   |
| Repayments      under line of credit                                                                                                                                           |   |   | (484,322 | ) |   |   | (463,967 | ) |   |   | (405,277 | ) |
| Borrowings      of long-term debt                                                                                                                                              |   |   | 2,067 |   |   |   | 1,996 |   |   |   | 1,977 |   |
| Repayments      of long-term debt                                                                                                                                              |   |   | (2,704 | ) |   |   | (2,682 | ) |   |   | (2,913 | ) |
| Repurchases      of common stock                                                                                                                                               |   |   | (7,331 | ) |   |   | - |   |   |   | (17,869 | ) |
| Stock      compensation excess tax benefits                                                                                                                                    |   |   | 5 |   |   |   | 70 |   |   |   | - |   |
| Exercise      of stock options                                                                                                                                                 |   |   | 120 |   |   |   | 300 |   |   |   | 378 |   |
|                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      cash provided by (used in) financing activities                                                                                                                       |   |   | 15,911 |   |   |   | (18,062 | ) |   |   | (1,244 | ) |
|                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      DECREASE IN CASH AND CASH EQUIVALENTS                                                                                                                                 |   |   | (633 | ) |   |   | (89 | ) |   |   | (18,530 | ) |
|                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS—Beginning of year                                                                                                                         |   |   | 1,040 |   |   |   | 1,129 |   |   |   | 19,659 |   |
|                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS—End of year                                                                                                                               |   | $ | 407 |   |   | $ | 1,040 |   |   | $ | 1,129 |   |
|                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURES OF CASH FLOW INFORMATION—                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      paid during the period for:                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                                                                                                                                                                       |   | $ | 2,410 |   |   | $ | 1,481 |   |   | $ | 1,928 |   |
| Income      taxes                                                                                                                                                              |   | $ | 1,976 |   |   | $ | 10,061 |   |   | $ | 7,190 |   |
|                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| NONCASH      INVESTING AND FINANCING ACTIVITIES—                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchases      of revenue equipment included in accounts payable                                                                                                               |   | $ | - |   |   | $ | 14,276 |   |   | $ | - |   |
|                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| See      notes to consolidated financial statements.                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |

Table of Contents

----

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

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

Table of Contents

----

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

Table of Contents

----

Table of Contents

----

Table of Contents

----

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

|                                     |   | 2007                |   |   | 2006   |   |
|------------------------------------------|--------|---------------------|--------|--------|--------|--------|
|                                     |   | (in      thousands) |   |
|                                     |   |                |   |   |   |   |
| Billed                                   |   | $                   | 53,439 |   |   | $      | 55,132 |   |
| Unbilled                                 |   |                | 6,849  |   |   |   | 7,794 |   |
| Allowance      for doubtful accounts     |   |                | (1,891 | )      |   |   | (1,457 | ) |
|                                     |   |                |   |   |   |   |   |   |
| Total      accounts receivable—net |   | $                   | 58,397 |   |   | $      | 61,469 |   |

|                                 |   | 2007                |   |   | 2006   |   |   | 2005   |   |
|--------------------------------------|--------|---------------------|--------|--------|--------|--------|--------|--------|--------|
|                                 |   | (in      thousands) |   |
|                                 |   |                |   |   |   |   |   |   |   |
| Balance—beginning      of year |   | $                   | 1,457  |   |   | $      | 2,030  |   |   | $ | 768 |   |
| Provision      for bad debts         |   |                | 607    |   |   |   | 354    |   |   |   | 1,490 |   |
| Charge-offs                          |   |                | (361   | )      |   |   | (960   | )      |   |   | (228 | ) |
| Recoveries                           |   |                | 188    |   |   |   | 33     |   |   |   | - |   |
| Balance—end      of year       |   | $                   | 1,891  |   |   | $      | 1,457  |   |   | $ | 2,030 |   |

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

Table of Contents

----

|                                              |   | 2007                |   |   | 2006       |   |
|---------------------------------------------------|--------|---------------------|--------|--------|------------|--------|
|                                              |   | (in      thousands) |   |
|                                              |   |                |   |   | Unrealized |   |   |   |   |   | Unrealized |   |
|                                              |   | Fair      Value     |   |   | Losses     |   |   | Fair      Value |   |   | Losses |   |
|                                              |   |                |   |   |       |   |   |   |   |   |   |   |
| Equity      securities – Available for sale |   | $                   | 5,308  |   |       | $      | 1,541 |   |   | $ | 417 |   |   | $ | 12 |   |
| Equity      securities – Trading            |   |                | 409    |   |       |   | 31 |   |   |   | - |   |   |   | - |   |
|                                              |   |                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Totals                                            |   | $                   | 5,717  |   |       | $      | 1,572 |   |   | $ | 417 |   |   | $ | 12 |   |

Table of Contents

----

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

|                             |   | 2007                |   |   | 2006   |   |   | 2005   |   |
|----------------------------------|--------|---------------------|--------|--------|--------|--------|--------|--------|--------|
|                             |   | (in      thousands) |   |
|                             |   |                |   |   |   |   |   |   |   |
| Goodwill,      beginning of year |   | $                   | 15,413 |   |   | $      | 15,413 |   |   | $ | 15,413 |   |
| Goodwill      acquired           |   |                | -      |   |   |   | -      |   |   |   | - |   |
| Goodwill      impairment         |   |                | -      |   |   |   | -      |   |   |   | - |   |
|                             |   |                |   |   |   |   |   |   |   |   |   |   |
| Goodwill—end      of year  |   | $                   | 15,413 |   |   | $      | 15,413 |   |   | $ | 15,413 |   |

|                                       |   | 2007                |   |   | 2006   |   |
|--------------------------------------------|--------|---------------------|--------|--------|--------|--------|
|                                       |   | (in      thousands) |   |
|                                       |   |                |   |   |   |   |
| Non-compete      agreements, original cost |   | $                   | 1,000  |   |   | $      | 1,000 |   |
| Accumulated      amortization              |   |                | (983   | )      |   |   | (783 | ) |
|                                       |   |                |   |   |   |   |   |   |
| Non-compete      agreements—net      |   | $                   | 17     |   |   | $      | 217 |   |

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

|                                              |   | 2007                |   |   | 2006   |   |
|---------------------------------------------------|--------|---------------------|--------|--------|--------|--------|
|                                              |   | (in      thousands) |   |
|                                              |   |                |   |   |   |   |
| Payroll                                           |   | $                   | 1,818  |   |   | $      | 1,779 |   |
| Accrued      vacation                             |   |                | 1,966  |   |   |   | 1,827 |   |
| Taxes—other      than income                |   |                | 2,598  |   |   |   | 2,591 |   |
| Interest                                          |   |                | 123    |   |   |   | 80 |   |
| Driver      escrows                               |   |                | 1,023  |   |   |   | 939 |   |
| Self-insurance      claims reserves               |   |                | 2,795  |   |   |   | 2,778 |   |
|                                              |   |                |   |   |   |   |   |   |
| Total      accrued expenses and other liabilities |   | $                   | 10,323 |   |   | $      | 9,994 |   |

Table of Contents

----

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

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

|                                                         |   | 2007                |   |   | 2006   |   |
|--------------------------------------------------------------|--------|---------------------|--------|--------|--------|--------|
|                                                         |   | (in      thousands) |   |
| Line      of credit with a bank—due May 31, 2009, and  |   |                |   |   |   |   |
| collateralized      by accounts receivable (1)               |   | $                   | 28,192 |   |   | $      | 14,437 |   |
| Line      of credit with a bank—due June 30, 2008, and |   |                |   |   |   |   |   |   |
| collateralized      by revenue equipment (2)                 |   |                | 15,000 |   |   |   | 5,000 |   |
| Note      payable (3)                                        |   |                | 1,767  |   |   |   | 2,510 |   |
| Other      (4)                                               |   |                | 1,124  |   |   |   | 1,173 |   |
| Other      (5)                                               |   |                | 154    |   |   |   | - |   |
| Total      long-term debt                                    |   | $                   | 46,237 |   |   | $      | 23,120 |   |
| Less      current maturities                                 |   |                | (2,065 | )      |   |   | (1,915 | ) |
|                                                         |   |                |   |   |   |   |   |   |
| Long-term      debt—net of current maturities          |   | $                   | 44,172 |   |   | $      | 21,205 |   |

| (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% (6.48% at December 31, 2007). 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,      2007. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Line      of credit agreement with a bank provides for maximum borrowings of $30.0      million and contains certain restrictive covenants that must be maintained      by the Company on a consolidated basis. Borrowings on the line of credit      are at an interest rate of LIBOR as of the last day of the previous month      plus 1.15% (6.39% at December 31, 2007). Monthly payments of interest are      required under this agreement. Also, under the terms of the agreement the      Company must have (a) positive net income, (b) a funded debt to EBITDA      ratio of less than 3:1, (c) a leverage ratio of less than 3:1, and (d)      maintain a tangible net worth of at least $42 million increased by (1) 50%      of cumulative quarterly net income and (2) proceeds of any public stock      offering. The Company was in compliance with all provisions of the      agreement at December 31, 2007. The Company has the intent and ability to      extend the terms of this agreement for an additional one year period until      June 30, 2009 and accordingly has classified the debt as      long-term. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Table of Contents

----

| (3)   | 6.0%      note to the former owner of an acquired entity with an original face      amount of $4,974,612, payable in monthly installments of $72,672 through      March 2010. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | 5.75%      note to insurance premium finance company at December 31, 2007 with an      original face amount of $1,912,934, payable in monthly installments of      $163,636 through August 2008. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | 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) |   |
|--------|--------|---------------------|--------|
|   |   |                |   |
| 2008   |   | $                   | 2,065  |   |
| 2009   |   |                | 44,028 |   |
| 2010   |   |                | 144    |   |
| 2011   |   |                | -      |   |
| 2012   |   |                | -      |   |
|   |   |                |   |   |
| Total  |   | $                   | 46,237 |   |

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

Table of Contents

----

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

|                                                |   | 2007                |   |   | 2006   |   |   | 2005   |   |
|-----------------------------------------------------|--------|---------------------|--------|--------|--------|--------|--------|--------|--------|
|                                                |   | (in      thousands) |   |
|                                                |   |                |   |   |   |   |   |   |   |
| Net      income                                     |   | $                   | 2,653  |   |   | $      | 17,964 |   |   | $ | 13,139 |   |
|                                                |   |                |   |   |   |   |   |   |   |   |   |   |
| Other      comprehensive income (loss):             |   |                |   |   |   |   |   |   |   |   |   |   |
| Reclassification      adjustment for realized gains |   |                |   |   |   |   |   |   |   |   |   |   |
| on      marketable securities, included in          |   |                |   |   |   |   |   |   |   |   |   |   |
| net      income, net of income taxes                |   |                | (359   | )      |   |   | -      |   |   |   | - |   |
| Reclassification      adjustment for losses on      |   |                |   |   |   |   |   |   |   |   |   |   |
| derivative      instruments included in net income  |   |                |   |   |   |   |   |   |   |   |   |   |
| accounted      for as hedges, net of income taxes   |   |                | -      |   |   |   | 18     |   |   |   | 227 |   |
| Reclassification      adjustment for unrealized     |   |                |   |   |   |   |   |   |   |   |   |   |
| losses      on marketable securities, included in   |   |                |   |   |   |   |   |   |   |   |   |   |
| net      income, net of income taxes                |   |                | 55     |   |   |   | 53     |   |   |   | 91 |   |
| Change      in fair value of interest rate          |   |                |   |   |   |   |   |   |   |   |   |   |
| swap      agreements, net of income taxes           |   |                | -      |   |   |   | 1      |   |   |   | 55 |   |
| Change      in fair value of marketable             |   |                |   |   |   |   |   |   |   |   |   |   |
| securities,      net of income taxes                |   |                | (917   | )      |   |   | 1,349  |   |   |   | 197 |   |
|                                                |   |                |   |   |   |   |   |   |   |   |   |   |
| Total      comprehensive income                     |   | $                   | 1,432  |   |   | $      | 19,385 |   |   | $ | 13,709 |   |

Table of Contents

----

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

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

|                                 |   | 2007                |   |   | 2006      |   |
|--------------------------------------|--------|---------------------|--------|--------|-----------|--------|
|                                 |   | (in      thousands) |   |
|                                 |   | Current             |   |   | Long-Term |   |   | Current |   |   | Long-Term |   |
|                                 |   |                |   |   |      |   |   |   |   |   |   |   |
| Deferred      tax liabilities:       |   |                |   |   |      |   |   |   |   |   |   |   |
| Property      and equipment          |   | $                   | -      |   |      | $      | 52,062 |   |   | $ | - |   |   | $ | 49,731 |   |
| Unrealized      gains on securities  |   |                | 1,423  |   |      |   | - |   |   |   | 2,113 |   |   |   | - |   |
| Prepaid      expenses and other      |   |                | 5,650  |   |      |   | 3,428 |   |   |   | 5,665 |   |   |   | 2,920 |   |
|                                 |   |                |   |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Total      deferred tax liabilities  |   |                | 7,073  |   |      |   | 55,490 |   |   |   | 7,778 |   |   |   | 52,651 |   |
|                                 |   |                |   |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Deferred      tax assets:            |   |                |   |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Allowance      for doubtful accounts |   |                | 718    |   |      |   | - |   |   |   | 553 |   |   |   | - |   |
| Alternative      minimum tax credit  |   |                | -      |   |      |   | 481 |   |   |   | - |   |   |   | - |   |
| Compensated      absences            |   |                | 630    |   |      |   | - |   |   |   | 564 |   |   |   | - |   |
| Self-insurance      allowances       |   |                | 492    |   |      |   | - |   |   |   | 664 |   |   |   | - |   |
| Share-based      compensation        |   |                | -      |   |      |   | 289 |   |   |   | - |   |   |   | 242 |   |
| Bonus      compensation              |   |                | -      |   |      |   | - |   |   |   | 235 |   |   |   | - |   |
| Net      operating loss carryover    |   |                | -      |   |      |   | 722 |   |   |   | - |   |   |   | - |   |
| Non-competition      agreement       |   |                | -      |   |      |   | 494 |   |   |   | - |   |   |   | 507 |   |
| Other                                |   |                | 116    |   |      |   | - |   |   |   | 104 |   |   |   | - |   |
|                                 |   |                |   |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Total      deferred tax assets       |   |                | 1,956  |   |      |   | 1,986 |   |   |   | 2,120 |   |   |   | 749 |   |
|                                 |   |                |   |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Net      deferred tax liability      |   | $                   | 5,117  |   |      | $      | 53,504 |   |   | $ | 5,658 |   |   | $ | 51,902 |   |

Table of Contents

----

|                              |   | 2007                |   |   | 2006    |   |   | 2005   |   |
|-----------------------------------|--------|---------------------|--------|--------|---------|--------|--------|--------|--------|
|                              |   | (in      thousands) |   |
|                              |   | Amount              |   |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |
|                              |   |                |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      tax at the            |   |                |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| statutory      federal rate       |   | $                   | 1,571  |   |    |   | 34.0   |   |   | $ | 10,513 |   |   |   | 35.0 |   |   | $ | 7,743 |   |   |   | 35.0 |   |
| Nondeductible      expense        |   |                | 381    |   |    |   | 8.3    |   |   |   | 378 |   |   |   | 1.3 |   |   |   | 450 |   |   |   | 2.0 |   |
| State      income taxes—net |   |                |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| of      federal benefit           |   |                | 14     |   |    |   | 0.3    |   |   |   | 1,182 |   |   |   | 3.9 |   |   |   | 790 |   |   |   | 3.6 |   |
| Total      income taxes           |   | $                   | 1,966  |   |    |   | 42.6   |   |   | $ | 12,073 |   |   |   | 40.2 |   |   | $ | 8,983 |   |   |   | 40.6 |   |

|                          |   | 2007                |   |   | 2006   |   |   | 2005   |   |
|-------------------------------|--------|---------------------|--------|--------|--------|--------|--------|--------|--------|
|                          |   | (in      thousands) |   |
| Current:                      |   |                |   |   |   |   |   |   |   |
| Federal                       |   | $                   | 305    |   |   | $      | 8,397  |   |   | $ | 6,422 |   |
| State                         |   |                | (88    | )      |   |   | 1,371  |   |   |   | 1,150 |   |
|                          |   |                | 217    |   |   |   | 9,768  |   |   |   | 7,572 |   |
| Deferred:                     |   |                |   |   |   |   |   |   |   |   |   |   |
| Federal                       |   |                | 1,295  |   |   |   | 1,768  |   |   |   | 876 |   |
| State                         |   |                | 454    |   |   |   | 537    |   |   |   | 535 |   |
|                          |   |                | 1,749  |   |   |   | 2,305  |   |   |   | 1,411 |   |
|                          |   |                |   |   |   |   |   |   |   |   |   |   |
| Total      income tax expense |   | $                   | 1,966  |   |   | $      | 12,073 |   |   | $ | 8,983 |   |

Table of Contents

----

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

Table of Contents

----

|                                              |   | SharesUnderOption |    |   | Weighted-AverageExercise      Price |   |
|---------------------------------------------------|--------|-------------------|---------|--------|-------------------------------------|--------|
|                                              |   |              |    |   |                                |   |
| Outstanding—January      1, 2005:           |   |              | 313,500 |   |                                | $      | 20.70 |   |
| Granted                                           |   |              | 14,000  |   |                                |   | 18.27 |   |
| Exercised                                         |   |              | (41,000 | )      |                                |   | 9.21 |   |
|                                              |   |              |    |   |                                |   |   |   |
| Outstanding—December      31, 2005:         |   |              | 286,500 |   |                                | $      | 22.22 |   |
| Granted                                           |   |              | 16,000  |   |                                |   | 26.73 |   |
| Exercised                                         |   |              | (18,000 | )      |                                |   | 16.67 |   |
|                                              |   |              |    |   |                                |   |   |   |
| Outstanding—December      31, 2006:         |   |              | 284,500 |   |                                | $      | 22.83 |   |
| Granted                                           |   |              | 16,000  |   |                                |   | 22.92 |   |
| Exercised                                         |   |              | (6,000  | )      |                                |   | 19.95 |   |
| Canceled                                          |   |              | (46,000 | )      |                                |   | 23.34 |   |
|                                              |   |              |    |   |                                |   |   |   |
| Outstanding—December      31, 2007:         |   |              | 248,500 |   |                                | $      | 22.81 |   |
|                                              |   |              |    |   |                                |   |   |   |
| Options      exercisable—December 31, 2007: |   |              | 248,500 |   |                                | $      | 22.81 |   |

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

Table of Contents

----

|                                   | 2007                         | 2006                         | 2005                |
|----------------------------------------|------------------------------|------------------------------|---------------------|
|                                   |                         |                         |                |
| Dividend      yield                    | 0%                           | 0%                           | 0%                  |
| Volatility      range                  | 37.34%—38.54%          | 33.34%—38.54%          | 33.86%—38.54% |
| Risk-free      rate range              | 4.38%—4.48%            | 4.38%—5.02%            | 4.08%—4.38%   |
| Expected      life                     | 2.5      years—5 years | 2.5      years—5 years | 5      years        |
| Fair      value of options (per share) | $6.32—$9.45            | $6.93—$9.45            | $6.73—$9.45   |

|                                                                                                                                                                                                                                                                                       |   | Shares      Under Option |    |   | Weighted-      Average Exercise Price |   |   | Weighted-      Average Remaining Contractual Term |   |   | Aggregate      Intrinsic Value* |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|---------|--------|---------------------------------------|--------|--------|---------------------------------------------------|--------|--------|---------------------------------|--------|
|                                                                                                                                                                                                                                                                                       |   |                     |    |   | (per      share)                      |   |   | (in      years)                                   |   |   |                            |   |
| Outstanding      at January 1, 2007                                                                                                                                                                                                                                                        |   |                     | 284,500 |   |                                  | $      | 22.83  |                                              |   |   |                            |   |   |   |
| Granted                                                                                                                                                                                                                                                                                    |   |                     | 16,000  |   |                                  |   | 22.92  |                                              |   |   |                            |   |   |   |
| Exercised                                                                                                                                                                                                                                                                                  |   |                     | (6,000  | )      |                                  |   | 19.95  |                                              |   |   |                            |   |   |   |
| Canceled/forfeited/expired                                                                                                                                                                                                                                                                 |   |                     | (46,000 | )      |                                  |   | 23.34  |                                              |   |   |                            |   |   |   |
| Outstanding      at December 31, 2007                                                                                                                                                                                                                                                      |   |                     | 248,500 |   |                                  | $      | 22.81  |                                              |   |   | 4.0                             |   |   | $ | - |   |
|                                                                                                                                                                                                                                                                                       |   |                     |    |   |                                  |   |   |                                              |   |   |                            |   |   |   |   |   |
| Fully      vested andexercisable      at December 31, 2007                                                                                                                                                                                                                                 |   |                     | 248,500 |   |                                  | $      | 22.81  |                                              |   |   | 4.0                             |   |   | $ | - |   |
| ___________________________                                                                                                                                                                                                                                                                |   |                     |    |   |                                  |   |   |                                              |   |   |                            |   |   |   |   |   |
| *      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, 2007, was $15.54. |   |

Table of Contents

----

|                                |   | Number      of Options |    |   | Weighted-      Average Grant Date Fair Value |   |
|-------------------------------------|--------|------------------------|---------|--------|----------------------------------------------|--------|
|                                |   |                   |    |   |                                         |   |
| Nonvested      at January 1, 2007   |   |                   | 82,500  |   |                                         | $      | 9.43 |   |
| Granted                             |   |                   | 16,000  |   |                                         |   | 6.32 |   |
| Vested                              |   |                   | (58,500 | )      |                                         |   | 8.57 |   |
| Canceled/forfeited/expired          |   |                   | (40,000 | )      |                                         |   | 9.45 |   |
|                                |   |                   |    |   |                                         |   |   |   |
| Nonvested      at December 31, 2007 |   |                   | -       |   |                                         | $      | - |   |
|                                |   |                   |    |   |                                         |   |   |   |

| Exercise      Price |   | Shares      Under Outstanding Options |   | Weighted-Average      Remaining Contractual Term |   | Shares      Under Exercisable Options |
|---------------------|--------|---------------------------------------|--------|--------------------------------------------------|--------|---------------------------------------|
|                |   |                                  |   | (in      years)                                  |   |                                  |
| $16.99              |   | 8,000                                 |   | 1.2                                              |   | 8,000                                 |
| $18.27              |   | 10,000                                |   | 2.2                                              |   | 10,000                                |
| $19.88              |   | 12,500                                |   | 0.7                                              |   | 12,500                                |
| $22.68              |   | 10,000                                |   | 0.2                                              |   | 10,000                                |
| $22.92              |   | 14,000                                |   | 4.2                                              |   | 14,000                                |
| $23.22              |   | 180,000                               |   | 4.7                                              |   | 180,000                               |
| $26.73              |   | 14,000                                |   | 3.5                                              |   | 14,000                                |
|                |   | 248,500                               |   | 4.0                                              |   | 248,500                               |

Table of Contents

----

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

|                                                    |   | For      the Year Ended December 31,       |   |
|---------------------------------------------------------|--------|--------------------------------------------|--------|
|                                                    |   | 2007                                       |   |   | 2006 |   |   | 2005 |   |
|                                                    |   | (in      thousands, except per share data) |   |
|                                                    |   |                                       |   |   |   |   |   |   |   |
| Net      income                                         |   | $                                          | 2,653  |   |   | $ | 17,964 |   |   | $ | 13,139 |   |
|                                                    |   |                                       |   |   |   |   |   |   |   |   |   |   |
| Basic      weighted average common shares outstanding   |   |                                       | 10,238 |   |   |   | 10,296 |   |   |   | 10,966 |   |
| Dilutive      effect of common stock equivalents        |   |                                       | 1      |   |   |   | 6 |   |   |   | 10 |   |
|                                                    |   |                                       |   |   |   |   |   |   |   |   |   |   |
| Diluted      weighted average common shares outstanding |   |                                       | 10,239 |   |   |   | 10,302 |   |   |   | 10,976 |   |
|                                                    |   |                                       |   |   |   |   |   |   |   |   |   |   |
| Basic      earnings per share                           |   | $                                          | 0.26   |   |   | $ | 1.74 |   |   | $ | 1.20 |   |
|                                                    |   |                                       |   |   |   |   |   |   |   |   |   |   |
| Diluted      earnings per share                         |   | $                                          | 0.26   |   |   | $ | 1.74 |   |   | $ | 1.20 |   |

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

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

| 2008                     |   | $      | 519,817   |   |
|--------------------------|--------|--------|-----------|--------|
| 2009                     |   |   | 394,818   |   |
| 2010                     |   |   | 367,000   |   |
| 2011                     |   |   | 187,000   |   |
| 2012      and thereafter |   |   | 272,000   |   |
|                     |   |   |      |   |
| Total                    |   | $      | 1,740,635 |   |

Table of Contents

----

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

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

Table of Contents

----

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

Table of Contents

----

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

|                                    |   | 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      taxes                       |   |                                       | 823    |   |   |   | 1,471 |   |   |   | 26 |   |   |   | (354 | ) |
|                                    |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                         |   | $                                          | 1,265  |   |   | $ | 2,192 |   |   | $ | 36 |   |   | $ | (840 | ) |
|                                    |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income 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 |   |

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

Table of Contents

----

Item 9.

Item 9A

Table of Contents

----

Item 9B. 

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

Table of 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     |   |                                                                                                  | 248,500 |   |                                                                             | $      | 22.81  |                                                                                                   |   |   | 718,000 |   |
|                                                            |   |                                                                                                  |    |   |                                                                             |   |   |                                                                                                   |   |   |   |   |
| Equity      Compensation Plans not approved by Security Holders |   |                                                                                                  | -0-     |   |                                                                             |   | -0-    |                                                                                                   |   |   | -0- |   |
|                                                            |   |                                                                                                  |    |   |                                                                             |   |   |                                                                                                   |   |   |   |   |
| Total                                                           |   |                                                                                                  | 248,500 |   |                                                                             | $      | 22.81  |                                                                                                   |   |   | 718,000 |   |

Table of 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. |
|-----|-----------|

Table of 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 respecting $10,000,000      line of credit (Exh. 4.1.4, 6/30/95 10-Q)                                                                               |
|            |   |                                                                                                                                                                                                                                                                                               |
| *4.4            |   | Second      Amendment to Loan Agreement dated July 3, 1996 by P.A.M. Transport, Inc.,      First Tennessee Bank National Association and P.A.M. Transportation      Services, Inc., together with Promissory Note in the principal amount of      $5,000,000 (Exh. 4.1.1, 9/30/96 10-Q)            |
|            |   |                                                                                                                                                                                                                                                                                               |
| *4.4.1          |   | Second      Amendment to Security Agreement dated July 3, 1996 by and between P.A.M.      Transport, Inc. and First Tennessee National Bank Association (Exh. 4.1.2,      9/30/96 10-Q)                                                                                                            |
|            |   |                                                                                                                                                                                                                                                                                               |
| *4.4.2          |   | First      Amendment to Security Agreement dated July 3, 1996 by and between Choctaw      Express, Inc. and First Tennessee Bank National Association (Exh. 4.1.3,      9/30/96 10-Q)                                                                                                              |
|            |   |                                                                                                                                                                                                                                                                                               |
| *4.4.3          |   | Security      Agreement dated July 3, 1996 by and between Allen Freight Services, Inc.      and First Tennessee Bank National Association (Exh. 4.1.4, 9/30/96      10-Q)                                                                                                                          |
|            |   |                                                                                                                                                                                                                                                                                               |
| *4.5.1          |   | Loan      Agreement dated as of November 22, 2000 by and between P.A.M. Transport,      Inc. and SunTrust Bank (Exh. 4.5.1, 2001 10-K)                                                                                                                                                             |
|            |   |                                                                                                                                                                                                                                                                                               |
| *4.5.2          |   | Revolving      Credit Note dated November 22, 2000 (Exh. 4.5.2, 2001  10-K)                                                                                                                                                                                                                        |
|            |   |                                                                                                                                                                                                                                                                                               |
| *4.5.3          |   | Security      Agreement by and between P.A.M. Transport, Inc. and SunTrust Bank (Exh.      4.5.3, 2001 10-K)                                                                                                                                                                                       |
|            |   |                                                                                                                                                                                                                                                                                               |
| *4.5.4          |   | First      Amendment to Loan Agreement, Revolving Credit Note and Security Deposit      (Exh. 4.5.4, 2001 10-K)                                                                                                                                                                                    |
|            |   |                                                                                                                                                                                                                                                                                               |
|   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 PromissoryNote                                                                                                               |
|            |   |                                                                                                                                                                                                                                                                                               |
| *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)                                                                                                                                                                                                                                |
|            |   |                                                                                                                                                                                                                                                                                               |

Table of Contents

----

| *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                                                                                    |
|                                                                        |   |                                                                                                                                                                             |
|   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 Certification of Chief Executive      Officer                                                                                                                       |
|                                                                        |   |                                                                                                                                                                             |
|   32.2                                                            |   | Section 1350 Certification of Chief Financial      Officer                                                                                                                       |
|                                                                        |   |                                                                                                                                                                             |
| (1)  Management      contract or compensatory plan orarrangement. |

Table of Contents

----

SIGNATURES

|                                                                                                                                                                                                                   |   | P.A.M.      TRANSPORTATION SERVICES, INC.                  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------|--------|
|                                                                                                                                                                                                                   |   |                                                       |   |
| Dated:      March 13, 2008                                                                                                                                                                                             | By:    | /s/      Robert W. Weaver                                  |   |
|                                                                                                                                                                                                                   |   | ROBERT      W. WEAVER                                      |   |
|                                                                                                                                                                                                                   |   | President      and Chief Executive Officer                 |   |
|                                                                                                                                                                                                                   |   | (principal      executive officer)                         |   |
|                                                                                                                                                                                                                   |   |                                                       |   |
| Dated:      March 13, 2008                                                                                                                                                                                             | By:    | /s/      Larry J. Goddard                                  |   |
|                                                                                                                                                                                                                   |   | LARRY      J. GODDARD                                      |   |
|                                                                                                                                                                                                                   |   | Vice      President-Finance, Chief Financial Officer,      |   |
|                                                                                                                                                                                                                   |   | Secretary      and Treasurer                               |   |
|                                                                                                                                                                                                                   |   | (principal      financial and accounting officer)          |   |
|                                                                                                                                                                                                                   |   |                                                       |   |
| Pursuant      to the requirements of the Securities Exchange Act of 1934, this report      has been signed by the following persons on behalf of the registrant and      in the capacities and on the dates indicated: |   |
|                                                                                                                                                                                                                   |   |                                                       |   |
|                                                                                                                                                                                                                   |   |                                                       |   |
| Dated:      March 13, 2008                                                                                                                                                                                             | By:    | /s/      Frederick P. Calderone                            |   |
|                                                                                                                                                                                                                   |   | FREDERICK      P. CALDERONE, Director                      |   |
|                                                                                                                                                                                                                   |   |                                                       |   |
| Dated:      March 13, 2008                                                                                                                                                                                             | By:    | /s/      Frank L. Conner                                   |   |
|                                                                                                                                                                                                                   |   | FRANK      L. CONNER, Director                             |   |
|                                                                                                                                                                                                                   |   |                                                       |   |
| Dated:      March 13, 2008                                                                                                                                                                                             | By:    | /s/      W. Scott Davis                                    |   |
|                                                                                                                                                                                                                   |   | W.      SCOTT DAVIS, Director                              |   |
|                                                                                                                                                                                                                   |   |                                                       |   |
| Dated:      March 13, 2008                                                                                                                                                                                             | By:    | /s/      Christopher L. Ellis                              |   |
|                                                                                                                                                                                                                   |   | CHRISTOPHER      L. ELLIS, Director                        |   |
|                                                                                                                                                                                                                   |   |                                                       |   |
| Dated:      March 13, 2008                                                                                                                                                                                             | By:    | /s/      Manuel J. Moroun                                  |   |
|                                                                                                                                                                                                                   |   | MANUEL      J. MOROUN, Director                            |   |
|                                                                                                                                                                                                                   |   |                                                       |   |
| Dated:      March 13, 2008                                                                                                                                                                                             | By:    | /s/      Matthew T. Moroun                                 |   |
|                                                                                                                                                                                                                   |   | MATTHEW      T. MOROUN, Director and Chairman of the Board |   |
|                                                                                                                                                                                                                   |   |                                                       |   |
| Dated:      March 13, 2008                                                                                                                                                                                             | By:    | /s/      Daniel C. Sullivan                                |   |
|                                                                                                                                                                                                                   |   | DANIEL      C. SULLIVAN, Director                          |   |
|                                                                                                                                                                                                                   |   |                                                       |   |
| Dated:      March 13, 2008                                                                                                                                                                                             | By:    | /s/      Robert W. Weaver                                  |   |
|                                                                                                                                                                                                                   |   | ROBERT      W. WEAVER,                                     |   |
|                                                                                                                                                                                                                   |   | President      and Chief Executive Officer, Director       |   |
|                                                                                                                                                                                                                   |   |                                                       |   |
| Dated:      March 13, 2008                                                                                                                                                                                             | By:    | /s/      Charles F. Wilkins                                |   |
|                                                                                                                                                                                                                   |   | CHARLES      F. WILKINS, Director                          |   |

Table of Contents

----

EXHIBIT INDEX

| Exhibit # |   | Description of Exhibit                                                                                                                                                                                                                                                                             |
|-----------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      |   |                                                                                                                                                                                                                                                                                               |
| *3.1      |   | Amended      and Restated Certificate of Incorporation of the Registrant (Exh. 3.1,      3/31/02 10-Q)                                                                                                                                                                                             |
|      |   |                                                                                                                                                                                                                                                                                               |
| *3.2      |   | Amended      and Restated By-Laws of the Registrant (Exh. 3.2, 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 respecting $10,000,000      line of credit(Exh.      4.1.4, 6/30/95 10-Q)                                                                           |
|      |   |                                                                                                                                                                                                                                                                                               |
| *4.4      |   | Second      Amendment to Loan Agreement dated July 3, 1996 by P.A.M. Transport, Inc.,      First Tennessee Bank National Association and P.A.M. Transportation      Services, Inc., together with Promissory Note in the principal amount of      $5,000,000 (Exh. 4.1.1, 9/30/96 10-Q)            |
|      |   |                                                                                                                                                                                                                                                                                               |
| *4.4.1    |   | Second      Amendment to Security Agreement dated July 3, 1996 by and between P.A.M.      Transport, Inc. and First Tennessee National Bank Association (Exh. 4.1.2,      9/30/96 10-Q)                                                                                                            |
|      |   |                                                                                                                                                                                                                                                                                               |
| *4.4.2    |   | First      Amendment to Security Agreement dated July 3, 1996 by and between Choctaw      Express, Inc. and First Tennessee Bank National Association (Exh. 4.1.3,      9/30/96 10-Q)                                                                                                              |
|      |   |                                                                                                                                                                                                                                                                                               |
| *4.4.3    |   | Security      Agreement dated July 3, 1996 by and between Allen Freight Services, Inc.      and First Tennessee Bank National Association (Exh. 4.1.4, 9/30/96      10-Q)                                                                                                                          |

Table of Contents

----

|                                                                        |   |                                                                                                                                                                                 |
|-----------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *4.5.1                                                                      |   | Loan      Agreement dated as of November 22, 2000 by and between P.A.M. Transport,      Inc. and SunTrust Bank (Exh. 4.5.1, 2001 10-K)                                               |
|                                                                        |   |                                                                                                                                                                                 |
| *4.5.2                                                                      |   | Revolving      Credit Note dated November 22, 2000 (Exh. 4.5.2, 2001  10-K)                                                                                                          |
|                                                                        |   |                                                                                                                                                                                 |
| *4.5.3                                                                      |   | Security      Agreement by and between P.A.M. Transport, Inc. and SunTrust Bank (Exh.      4.5.3, 2001 10-K)                                                                         |
|                                                                        |   |                                                                                                                                                                                 |
| *4.5.4                                                                      |   | First      Amendment to Loan Agreement, Revolving Credit Note and Security Deposit      (Exh. 4.5.4, 2001 10-K)                                                                      |
|                                                                        |   |                                                                                                                                                                                 |
|   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 PromissoryNote |
|                                                                        |   |                                                                                                                                                                                 |
| *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                                                                                        |
|                                                                        |   |                                                                                                                                                                                 |
|   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 Certification of Chief Executive      Officer                                                                                                                           |
|                                                                        |   |                                                                                                                                                                                 |
|   32.2                                                            |   | Section 1350 Certification of Chief Financial      Officer                                                                                                                           |
|                                                                        |   |                                                                                                                                                                                 |
| (1)  Management      contract or compensatory plan orarrangement. |