| 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) (Zip Code) |
|--------|-----------------------------------------------------|

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

|   | Registrant's telephone number, including area code |
|--------|----------------------------------------------------|

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

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

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

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

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

----

| Yes  o |   | 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                                                                                                              | 12       |
| Item 3  | Legal Proceedings                                                                                                       | 12       |
| Item 4  | Reserved                                                                                                                | 12       |
|    |                                                                                                                    |     |
|    | PART II                                                                                                                 |     |
| Item 5  | Market for Registrant's Common Equity, Related Stockholder Matters  and Issuer Purchases of Equity Securities |  13 |
| Item 6  | Selected Financial Data                                                                                                 | 15       |
| Item 7  | Management's Discussion and Analysis of Financial Condition  and Results of Operations                        |  16 |
| Item 7A | Quantitative and Qualitative Disclosures About Market Risk                                                              | 29       |
| Item 8  | Financial Statements and Supplementary Data                                                                             | 30       |
| Item 9  | Changes in and Disagreements with Accountants on Accounting  and Financial Disclosure                         |  56 |
| Item 9A | Controls and Procedures                                                                                                 | 56       |
| Item 9B | Other Information                                                                                                       | 57       |
|    |                                                                                                                    |     |
|    | PART III                                                                                                                |     |
| Item 10 | Directors, Executive Officers and Corporate Governance                                                                  | 58       |
| Item 11 | Executive Compensation                                                                                                  | 58       |
| Item 12 | Security Ownership of Certain Beneficial Owners and Management  and Related Stockholder Matters               |  58 |
| Item 13 | Certain Relationships and Related Transactions, and Director Independence                                               | 59       |
| Item 14 | Principal Accounting Fees and Services                                                                                  | 59       |
|    |                                                                                                                    |     |
|    | PART IV                                                                                                                 |     |
| Item 15 | Exhibits, Financial Statement Schedules                                                                                 | 59       |
|    |                                                                                                                    |     |
|    | SIGNATURES                                                                                                              | 62       |
|    |                                                                                                                    |     |
|    | EXHIBIT INDEX                                                                                                           | 63       |

----

Table of contents

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, volatile fuel costs, and intense competition for freight. |
|--------|-------------------------------------------------------------------------------------------------------------------------|

| · | In recent 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

----

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 to competitors; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | 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 Staff Comments.

----

Table of contents

Item 2. Properties.

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

Item 3. Legal Proceedings.

Item 4. Reserved.

----

Table of contents

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

|           |   | High   |   |   | Low    |   |
|----------------|--------|--------|--------|--------|--------|--------|
| First Quarter  |   | $      | 7.89   |   |   | $      | 2.71 |   |
| Second Quarter |   |   | 5.86   |   |   |   | 5.00 |   |
| Third Quarter  |   |   | 8.87   |   |   |   | 5.47 |   |
| Fourth Quarter |   |   | 10.93  |   |   |   | 7.51 |   |

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

----

Table of contents

----

Table of contents

Item 6. Selected Financial Data.

|                                                          |   | Year Ended December 31,                  |    |
|---------------------------------------------------------------|--------|------------------------------------------|---------|
|                                                          |   | 2009                                     |    |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                                                          |   | (in thousands, except per share amounts) |    |
| Statement of Operations Data:                                 |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating revenues:                                           |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |
|    Operating revenues, before fuel surcharge   |   | $                                        | 260,774 |   |   | $ | 323,272 |   |   | $ | 351,701 |   |   | $ | 351,373 |   |   | $ | 326,353 |   |
|    Fuel surcharge                              |   |                                     | 31,136  |   |   |   | 83,451 |   |   |   | 57,140 |   |   |   | 48,896 |   |   |   | 34,527 |   |
| Total operating revenues                                      |   |                                     | 291,910 |   |   |   | 406,723 |   |   |   | 408,841 |   |   |   | 400,269 |   |   |   | 360,880 |   |
|                                                          |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                                           |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Salaries, wages and benefits                |   |                                     | 101,833 |   |   |   | 123,961 |   |   |   | 135,606 |   |   |   | 127,539 |   |   |   | 122,005 |   |
|    Fuel expense                                |   |                                     | 65,527  |   |   |   | 140,531 |   |   |   | 114,242 |   |   |   | 97,286 |   |   |   | 81,017 |   |
|    Rent and purchased transportation           |   |                                     | 40,713  |   |   |   | 39,887 |   |   |   | 38,718 |   |   |   | 43,844 |   |   |   | 39,074 |   |
|    Depreciation and amortization               |   |                                     | 37,742  |   |   |   | 37,477 |   |   |   | 38,759 |   |   |   | 33,929 |   |   |   | 31,376 |   |
|    Goodwill impairment charge                  |   |                                     | -       |   |   |   | 15,413 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|    Operating supplies                          |   |                                     | 26,572  |   |   |   | 30,514 |   |   |   | 30,845 |   |   |   | 25,682 |   |   |   | 23,114 |   |
|    Operating taxes and licenses                |   |                                     | 13,055  |   |   |   | 15,937 |   |   |   | 17,520 |   |   |   | 16,421 |   |   |   | 15,776 |   |
|    Insurance and claims                        |   |                                     | 12,579  |   |   |   | 16,018 |   |   |   | 17,591 |   |   |   | 16,389 |   |   |   | 15,992 |   |
|    Communications and utilities                |   |                                     | 2,644   |   |   |   | 2,869 |   |   |   | 3,113 |   |   |   | 2,642 |   |   |   | 2,648 |   |
|    Other                                       |   |                                     | 4,967   |   |   |   | 5,119 |   |   |   | 7,130 |   |   |   | 5,426 |   |   |   | 6,205 |   |
|    Loss (gain) on sale or disposal of property |   |                                     | 931     |   |   |   | 952 |   |   |   | (48 | ) |   |   | 47 |   |   |   | 147 |   |
| Total operating expenses                                      |   |                                     | 306,563 |   |   |   | 428,678 |   |   |   | 403,476 |   |   |   | 369,205 |   |   |   | 337,354 |   |
| Operating (loss) income                                       |   |                                     | (14,653 | ) |   |   | (21,955 | ) |   |   | 5,365 |   |   |   | 31,064 |   |   |   | 23,526 |   |
| Non-operating (loss) income                                   |   |                                     | (745    | ) |   |   | (4,996 | ) |   |   | 1,707 |   |   |   | 448 |   |   |   | 477 |   |
| Interest expense                                              |   |                                     | (2,373  | ) |   |   | (2,429 | ) |   |   | (2,453 | ) |   |   | (1,475 | ) |   |   | (1,881 | ) |
| (Loss) income before income taxes                             |   |                                     | (17,771 | ) |   |   | (29,380 | ) |   |   | 4,619 |   |   |   | 30,037 |   |   |   | 22,122 |   |
| Income tax (benefit) expense                                  |   |                                     | (6,924  | ) |   |   | (10,615 | ) |   |   | 1,966 |   |   |   | 12,073 |   |   |   | 8,983 |   |
| Net (loss) income                                             |   | $                                        | (10,847 | ) |   | $ | (18,765 | ) |   | $ | 2,653 |   |   | $ | 17,964 |   |   | $ | 13,139 |   |
| (Loss) earnings per common share:                             |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                         |   | $                                        | (1.15   | ) |   | $ | (1.94 | ) |   | $ | 0.26 |   |   | $ | 1.74 |   |   | $ | 1.20 |   |
| Diluted                                                       |   | $                                        | (1.15   | ) |   | $ | (1.94 | ) |   | $ | 0.26 |   |   | $ | 1.74 |   |   | $ | 1.20 |   |
| Average common shares outstanding – Basic               |   |                                     | 9,411   |   |   |   | 9,683 |   |   |   | 10,238 |   |   |   | 10,296 |   |   |   | 10,966 |   |
| Average common shares outstanding – Diluted(1)          |   |                                     | 9,416   |   |   |   | 9,683 |   |   |   | 10,239 |   |   |   | 10,302 |   |   |   | 10,976 |   |

| (1)   | Diluted income per share for 2009, 2008, 2007, 2006 and 2005 assumes the exercise of stock options to purchase an aggregate of 7,139, 0, 19,213, 55,738 and 22,297 shares of common stock, respectively. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                     |   | At December 31,         |    |
|----------------------------------------------------------|--------|-------------------------|---------|
|                                                     |   | 2009                    |    |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| Balance Sheet Data:                                      |   | (in thousands)          |    |
| Total assets                                             |   | $                       | 260,656 |   |   | $ | 290,361 |   |   | $ | 319,904 |   |   | $ | 314,246 |   |   | $ | 293,441 |   |
| Long-term debt, excluding current portion                |   |                    | 27,202  |   |   |   | 35,492 |   |   |   | 44,172 |   |   |   | 21,205 |   |   |   | 39,693 |   |
| Stockholders' equity                                     |   |                    | 147,127 |   |   |   | 155,477 |   |   |   | 179,377 |   |   |   | 185,028 |   |   |   | 164,762 |   |
|                                                     |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   | Year Ended December 31, |    |
|                                                     |   |                    | 2009    |   |   |   | 2008 |   |   |   | 2007 |   |   |   | 2006 |   |   |   | 2005 |   |
| Operating Data:                                          |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating ratio (1)                                      |   |                    | 105.6   | % |   |   | 106.8 | % |   |   | 98.5 | % |   |   | 91.2 | % |   |   | 92.8 | % |
| Average number of truckloads per week                    |   |                    | 6,275   |   |   |   | 7,559 |   |   |   | 7,849 |   |   |   | 7,200 |   |   |   | 6,946 |   |
| Average miles per trip                                   |   |                    | 556     |   |   |   | 598 |   |   |   | 647 |   |   |   | 659 |   |   |   | 680 |   |
| Total miles traveled (in thousands)                      |   |                    | 177,872 |   |   |   | 221,450 |   |   |   | 246,801 |   |   |   | 229,810 |   |   |   | 228,624 |   |
| Average miles per truck                                  |   |                    | 102,816 |   |   |   | 111,114 |   |   |   | 118,483 |   |   |   | 123,156 |   |   |   | 125,479 |   |
| Average revenue, before fuel surcharge per truck per day |   | $                       | 591     |   |   | $ | 662 |   |   | $ | 695 |   |   | $ | 778 |   |   | $ | 740 |   |
| Average revenue, before fuel surcharge per loaded mile   |   | $                       | 1.36    |   |   | $ | 1.41 |   |   | $ | 1.38 |   |   | $ | 1.43 |   |   | $ | 1.33 |   |
| Empty mile factor                                        |   |                    | 7.7     | % |   |   | 7.3 | % |   |   | 6.5 | % |   |   | 5.9 | % |   |   | 5.5 | % |
|                                                     |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| At end of period:                                        |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total company-owned/leased trucks                        |   |                    | 1,731   | (2) |   |   | 1,839 | (3) |   |   | 2,055 | (4) |   |   | 1,998 | (5) |   |   | 1,792 | (6) |
| Average age of trucks (in years)                         |   |                    | 2.60    |   |   |   | 1.90 |   |   |   | 1.75 |   |   |   | 1.55 |   |   |   | 1.43 |   |
| Total trailers                                           |   |                    | 4,630   |   |   |   | 4,809 |   |   |   | 4,882 |   |   |   | 4,540 |   |   |   | 4,406 |   |
| Average age of trailers (in years)                       |   |                    | 5.22    |   |   |   | 4.43 |   |   |   | 4.44 |   |   |   | 4.16 |   |   |   | 3.92 |   |
| Number of employees                                      |   |                    | 2,591   |   |   |   | 2,931 |   |   |   | 3,181 |   |   |   | 3,062 |   |   |   | 3,035 |   |

----

Table of contents

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

----

Table of contents

|                                                   |   | Years Ended December 31, |   |
|--------------------------------------------------------|--------|--------------------------|--------|
|                                              |   | 2009                     |   |   | 2008 |   |   | 2007 |   |
| Operating revenues, before fuel surcharge              |   |                     | 100.0  | % |   |   | 100.0 | % |   |   | 100.0 | % |
| Operating expenses:                                    |   |                     |   |   |   |   |   |   |   |   |   |   |
|    Salaries, wages and benefits         |   |                     | 44.8   |   |   |   | 42.1 |   |   |   | 42.0 |   |
|    Fuel expense, net of fuel surcharge  |   |                     | 15.6   |   |   |   | 19.9 |   |   |   | 18.2 |   |
|    Rent and purchased transportation    |   |                     | 2.7    |   |   |   | 3.2 |   |   |   | 2.5 |   |
|    Depreciation and amortization        |   |                     | 17.0   |   |   |   | 12.9 |   |   |   | 12.2 |   |
|    Goodwill impairment                  |   |                     | 0.0    |   |   |   | 2.9 |   |   |   | 0.0 |   |
|    Operating supplies and expenses      |   |                     | 11.9   |   |   |   | 10.5 |   |   |   | 9.7 |   |
|    Operating taxes and licenses         |   |                     | 5.9    |   |   |   | 5.5 |   |   |   | 5.5 |   |
|    Insurance and claims                 |   |                     | 5.6    |   |   |   | 5.5 |   |   |   | 5.5 |   |
|    Communications and utilities         |   |                     | 1.1    |   |   |   | 1.0 |   |   |   | 0.9 |   |
|    Other                                |   |                     | 2.1    |   |   |   | 1.7 |   |   |   | 2.0 |   |
|    Loss on sale or disposal of property |   |                     | 0.4    |   |   |   | 0.3 |   |   |   | 0.0 |   |
| Total operating expenses                               |   |                     | 107.1  |   |   |   | 105.5 |   |   |   | 98.5 |   |
| Operating (loss) income                                |   |                     | (7.1   | ) |   |   | (5.5 | ) |   |   | 1.5 |   |
| Non-operating (loss) income                            |   |                     | (0.3   | ) |   |   | (1.7 | ) |   |   | 0.5 |   |
| Interest expense                                       |   |                     | (1.1   | ) |   |   | (0.8 | ) |   |   | (0.7 | ) |
| (Loss) income before income taxes                      |   |                     | (8.5   | )% |   |   | (8.0 | )% |   |   | 1.3 | % |

----

Table of contents

----

Table of contents

----

Table of contents

----

Table of contents

----

Table of contents

|                                                                       |   | Years Ended December 31, |   |
|----------------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                  |   | 2009                     |   |   | 2008 |   |   | 2007 |   |
| Operating revenues, before fuel surcharge                                  |   |                     | 100.0  | % |   |   | 100.0 | % |   |   | 100.0 | % |
| Operating expenses:                                                        |   |                     |   |   |   |   |   |   |   |   |   |   |
|    Salaries, wages and benefits                             |   |                     | 5.5    |   |   |   | 6.2 |   |   |   | 6.3 |   |
|    Fuel expense                                             |   |                     | 0.0    |   |   |   | 0.0 |   |   |   | 0.0 |   |
|    Rent and purchased transportation, net of fuel surcharge |   |                     | 90.4   |   |   |   | 89.5 |   |   |   | 88.9 |   |
|    Depreciation and amortization                            |   |                     | 0.0    |   |   |   | 0.0 |   |   |   | 0.0 |   |
|    Goodwill impairment                                      |   |                     | 0.0    |   |   |   | 20.6 |   |   |   | 0.0 |   |
|    Operating supplies and expenses                          |   |                     | 0.0    |   |   |   | 0.0 |   |   |   | 0.0 |   |
|    Operating taxes and licenses                             |   |                     | 0.0    |   |   |   | 0.0 |   |   |   | 0.0 |   |
|    Insurance and claims                                     |   |                     | 0.1    |   |   |   | 0.1 |   |   |   | 0.1 |   |
|    Communications and utilities                             |   |                     | 0.2    |   |   |   | 0.3 |   |   |   | 0.3 |   |
|    Other                                                    |   |                     | 0.9    |   |   |   | 1.0 |   |   |   | 2.1 |   |
|    Loss on sale or disposal of property                     |   |                     | 0.0    |   |   |   | 0.0 |   |   |   | 0.0 |   |
| Total operating expenses                                                   |   |                     | 97.1   |   |   |   | 117.7 |   |   |   | 97.7 |   |
| Operating (loss) income                                                    |   |                     | 2.9    |   |   |   | (17.7 | ) |   |   | 2.3 |   |
| Non-operating (loss) income                                                |   |                     | 0.0    |   |   |   | 0.0 |   |   |   | 0.0 |   |
| Interest expense                                                           |   |                     | (0.1   | ) |   |   | (0.2 | ) |   |   | (0.4 | ) |
| (Loss) income before income taxes                                          |   |                     | 2.8    | % |   |   | (17.9 | )% |   |   | 1.9 | % |

----

Table of contents

----

Table of contents

----

Table of contents

|                              |   | Quarter Ended                                  |   |
|-----------------------------------|--------|------------------------------------------------|--------|
|                              |   | Mar. 31,2009                                   |   |   | June 30,2009 |   |   | Sept. 30,2009 |   |   | Dec. 31,2009 |   |   | Mar. 31,2008 |   |   | June 30,2008 |   |   | Sept. 30,2008 |   |   | Dec. 31,2008 |   |
|                              |   | (unaudited)                                    |   |
|                              |   | (in thousands, except earnings per share data) |   |
| Operating revenues                |   | $                                              | 65,818 |   |   | $ | 68,476 |   |   | $ | 76,743 |   |   | $ | 80,872 |   |   | $ | 105,820 |   |   | $ | 110,930 |   |   | $ | 105,958 |   |   | $ | 84,014 |   |
| Total operating expenses          |   |                                           | 69,432 |   |   |   | 72,040 |   |   |   | 78,092 |   |   |   | 86,999 |   |   |   | 109,786 |   |   |   | 112,460 |   |   |   | 107,240 |   |   |   | 99,190 |   |
| Operating (loss) income           |   |                                           | (3,614 | ) |   |   | (3,564 | ) |   |   | (1,349 | ) |   |   | (6,127 | ) |   |   | (3,966 | ) |   |   | (1,530 | ) |   |   | (1,282 | ) |   |   | (15,176 | ) |
| Net (loss) income                 |   |                                           | (3,346 | ) |   |   | (2,356 | ) |   |   | (1,230 | ) |   |   | (3,915 | ) |   |   | (2,828 | ) |   |   | (1,332 | ) |   |   | (3,181 | ) |   |   | (11,424 | ) |
| (Loss) earnings per common share: |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                             |   | $                                              | (0.36  | ) |   | $ | (0.25 | ) |   | $ | (0.13 | ) |   | $ | (0.42 | ) |   | $ | (0.29 | ) |   | $ | (0.14 | ) |   | $ | (0.33 | ) |   | $ | (1.19 | ) |
| Diluted                           |   | $                                              | (0.36  | ) |   | $ | (0.25 | ) |   | $ | (0.13 | ) |   | $ | (0.42 | ) |   | $ | (0.29 | ) |   | $ | (0.14 | ) |   | $ | (0.33 | ) |   | $ | (1.19 | ) |

----

Table of contents

----

Table of contents

|                 |   | Payments due by period(in thousands) |   |
|----------------------|--------|--------------------------------------|--------|
|                 |   | Total                                |   |   | Less than1 year |   |   | 1 to 3Years |   |   | 3 to 5Years |   |   | More than5 Years |   |
|                 |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term debt (1)   |   | $                                    | 39,992 |   |   | $ | 11,978 |   |   | $ | 28,014 |   |   | $ | - |   |   | $ | - |   |
| Operating leases (2) |   |                                 | 755    |   |   |   | 296 |   |   |   | 379 |   |   |   | 80 |   |   |   | - |   |
| Total                |   | $                                    | 40,747 |   |   | $ | 12,274 |   |   | $ | 28,393 |   |   | $ | 80 |   |   | $ | - |   |
|                 |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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

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

----

Table of contents

----

Table of contents

Item 7A. Quantitative and Qualitative Disclosures about Market Risk.

----

Table of contents

Item 8. Financial Statements and Supplementary Data.

Report of Independent Registered Public Accounting Firm – Grant Thornton LLP

Consolidated Balance Sheets - December 31, 2009 and 2008

Consolidated Statements of Operations - Years ended December 31, 2009, 2008 and 2007

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

December 31, 2009, 2008 and 2007

Consolidated Statements of Cash Flows - Years ended December 31, 2009, 2008 and 2007

Notes to Consolidated Financial Statements

----

Table of contents

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

----

Table of contents

| P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETSDECEMBER 31, 2009 AND 2008(in thousands, except share and per share data) |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                            |   |   |   |   |   |   |
|                                                                                                                                                            |   |   |   |   |   |   |
| ASSETS                                                                                                                                                          |   | 2009 |   |   | 2008 |   |
|                                                                                                                                                            |   |   |   |   |   |   |
| CURRENT ASSETS:                                                                                                                                                 |   |   |   |   |   |   |
| Cash and cash equivalents                                                                                                                                       |   | $ | 9,870 |   |   | $ | 858 |   |
| Accounts receivable—net:                                                                                                                                  |   |   |   |   |   |   |   |   |
| Trade                                                                                                                                                           |   |   | 45,911 |   |   |   | 43,815 |   |
| Other                                                                                                                                                           |   |   | 1,551 |   |   |   | 1,088 |   |
| Inventories                                                                                                                                                     |   |   | 750 |   |   |   | 858 |   |
| Prepaid expenses and deposits                                                                                                                                   |   |   | 5,258 |   |   |   | 9,443 |   |
| Marketable equity securities                                                                                                                                    |   |   | 14,921 |   |   |   | 12,540 |   |
| Income taxes refundable                                                                                                                                         |   |   | 467 |   |   |   | 524 |   |
| Deferred income taxes—current                                                                                                                             |   |   | 1,401 |   |   |   | - |   |
|                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Total current assets                                                                                                                                            |   |   | 80,129 |   |   |   | 69,126 |   |
|                                                                                                                                                            |   |   |   |   |   |   |   |   |
| PROPERTY AND EQUIPMENT:                                                                                                                                         |   |   |   |   |   |   |   |   |
| Land                                                                                                                                                            |   |   | 4,924 |   |   |   | 4,916 |   |
| Structures and improvements                                                                                                                                     |   |   | 13,665 |   |   |   | 13,596 |   |
| Revenue equipment                                                                                                                                               |   |   | 297,788 |   |   |   | 320,188 |   |
| Office furniture and equipment                                                                                                                                  |   |   | 7,929 |   |   |   | 7,606 |   |
|                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Total property and equipment                                                                                                                                    |   |   | 324,306 |   |   |   | 346,306 |   |
|                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Accumulated depreciation                                                                                                                                        |   |   | (145,526 | ) |   |   | (125,742 | ) |
|                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Net property and equipment                                                                                                                                      |   |   | 178,780 |   |   |   | 220,564 |   |
|                                                                                                                                                            |   |   |   |   |   |   |   |   |
| OTHER ASSETS:                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Other                                                                                                                                                           |   |   | 1,747 |   |   |   | 671 |   |
|                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Total other assets                                                                                                                                              |   |   | 1,747 |   |   |   | 671 |   |
|                                                                                                                                                            |   |   |   |   |   |   |   |   |
| TOTAL ASSETS                                                                                                                                                    |   | $ | 260,656 |   |   | $ | 290,361 |   |
|                                                                                                                                                            |   |   |   |   |   |   |   |   |
|                                                                                                                                                            |   |   |   |   |   |   |   |   |
|                                                                                                                                                            |   |   |   |   |   | (Continued) |   |
|                                                                                                                                                            |   |   |   |   |   |   |   |   |
| See notes to consolidated financial statements.                                                                                                                 |   |

----

Table of contents

| CONSOLIDATED BALANCE SHEETSDECEMBER 31, 2009 AND 2008(in thousands, except share and per share data)                                                                                                                    |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                    |   |   |   |   |   |   |
|                                                                                                                                                                                                                    |   |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                                                                    |   | 2009 |   |   | 2008 |   |
|                                                                                                                                                                                                                    |   |   |   |   |   |   |
| CURRENT LIABILITIES:                                                                                                                                                                                                    |   |   |   |   |   |   |
| Accounts payable                                                                                                                                                                                                        |   | $ | 14,492 |   |   | $ | 20,269 |   |
| Accrued expenses and other liabilities                                                                                                                                                                                  |   |   | 10,504 |   |   |   | 15,684 |   |
| Current maturities of long—term debt                                                                                                                                                                              |   |   | 10,331 |   |   |   | 15,928 |   |
| Deferred income taxes—current                                                                                                                                                                                     |   |   | - |   |   |   | 157 |   |
|                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Total current liabilities                                                                                                                                                                                               |   |   | 35,327 |   |   |   | 52,038 |   |
|                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Long-term debt—less current portion                                                                                                                                                                               |   |   | 27,202 |   |   |   | 35,492 |   |
| Deferred income taxes—less current portion                                                                                                                                                                        |   |   | 51,000 |   |   |   | 47,354 |   |
|                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Total liabilities                                                                                                                                                                                                       |   |   | 113,529 |   |   |   | 134,884 |   |
|                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| SHAREHOLDERS' EQUITY                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Preferred stock, $.01 par value, 10,000,000 shares authorized; none issued                                                                                                                                         |   |   | - |   |   |   | - |   |
| Common stock, $.01 par value, 40,000,000 shares authorized; 11,372,207 and 11,368,207 shares issued; 9,413,607 and 9,409,607 shares outstanding at December 31, 2009 and December 31, 2008, respectively |   |   | 114 |   |   |   | 114 |   |
| Additional paid-in capital                                                                                                                                                                                              |   |   | 77,704 |   |   |   | 77,659 |   |
| Accumulated other comprehensive income                                                                                                                                                                                  |   |   | 3,063 |   |   |   | 611 |   |
| Treasury stock, at cost; 1,958,600 shares                                                                                                                                                                               |   |   | (29,127 | ) |   |   | (29,127 | ) |
| Retained earnings                                                                                                                                                                                                       |   |   | 95,373 |   |   |   | 106,220 |   |
|                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Total shareholders’ equity                                                                                                                                                                                        |   |   | 147,127 |   |   |   | 155,477 |   |
|                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                                                              |   | $ | 260,656 |   |   | $ | 290,361 |   |
|                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                    |   |   |   |   |   | (Concluded) |   |
| See notes to consolidated financial statements.                                                                                                                                                                         |   |

----

Table of contents

| P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONSYEARS ENDED DECEMBER 31, 2009, 2008 AND 2007(in thousands, except per share data) |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                              |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| OPERATING REVENUES:                                                                                                                                                               |   |   |   |   |   |   |   |   |   |
| Revenue, before fuel surcharge                                                                                                                                                    |   | $ | 260,774 |   |   | $ | 323,272 |   |   | $ | 351,701 |   |
| Fuel surcharge                                                                                                                                                                    |   |   | 31,136 |   |   |   | 83,451 |   |   |   | 57,140 |   |
|                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Total operating revenues                                                                                                                                                          |   |   | 291,910 |   |   |   | 406,723 |   |   |   | 408,841 |   |
|                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING EXPENSES AND COSTS:                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries, wages and benefits                                                                                                                                                      |   |   | 101,833 |   |   |   | 123,961 |   |   |   | 135,606 |   |
| Fuel expense                                                                                                                                                                      |   |   | 65,527 |   |   |   | 140,531 |   |   |   | 114,242 |   |
| Rents and purchased transportation                                                                                                                                                |   |   | 40,713 |   |   |   | 39,887 |   |   |   | 38,718 |   |
| Depreciation and amortization                                                                                                                                                     |   |   | 37,742 |   |   |   | 37,477 |   |   |   | 38,759 |   |
| Goodwill impairment charge                                                                                                                                                        |   |   | - |   |   |   | 15,413 |   |   |   | - |   |
| Operating supplies and expenses                                                                                                                                                   |   |   | 26,572 |   |   |   | 30,514 |   |   |   | 30,845 |   |
| Operating taxes and licenses                                                                                                                                                      |   |   | 13,055 |   |   |   | 15,937 |   |   |   | 17,520 |   |
| Insurance and claims                                                                                                                                                              |   |   | 12,579 |   |   |   | 16,018 |   |   |   | 17,591 |   |
| Communications and utilities                                                                                                                                                      |   |   | 2,644 |   |   |   | 2,869 |   |   |   | 3,113 |   |
| Other                                                                                                                                                                             |   |   | 4,967 |   |   |   | 5,119 |   |   |   | 7,130 |   |
| Loss (gain) on disposition of equipment                                                                                                                                           |   |   | 931 |   |   |   | 952 |   |   |   | (48 | ) |
|                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Total operating expenses and costs                                                                                                                                                |   |   | 306,563 |   |   |   | 428,678 |   |   |   | 403,476 |   |
|                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING (LOSS) INCOME                                                                                                                                                           |   |   | (14,653 | ) |   |   | (21,955 | ) |   |   | 5,365 |   |
|                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| NON-OPERATING (EXPENSE) INCOME                                                                                                                                                    |   |   | (745 | ) |   |   | (4,996 | ) |   |   | 1,707 |   |
| INTEREST EXPENSE                                                                                                                                                                  |   |   | (2,373 | ) |   |   | (2,429 | ) |   |   | (2,453 | ) |
|                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| (LOSS) INCOME BEFORE INCOME TAXES                                                                                                                                                 |   |   | (17,771 | ) |   |   | (29,380 | ) |   |   | 4,619 |   |
|                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| FEDERAL & STATE INCOME TAX (BENEFIT) EXPENSE:                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                                                                                                                                                                           |   |   | 180 |   |   |   | 314 |   |   |   | 217 |   |
| Deferred                                                                                                                                                                          |   |   | (7,104 | ) |   |   | (10,929 | ) |   |   | 1,749 |   |
|                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Total federal & state income tax (benefit) expense                                                                                                                            |   |   | (6,924 | ) |   |   | (10,615 | ) |   |   | 1,966 |   |
|                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| NET (LOSS) INCOME                                                                                                                                                                 |   | $ | (10,847 | ) |   | $ | (18,765 | ) |   | $ | 2,653 |   |
|                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| (LOSS) EARNINGS PER COMMON SHARE:                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                                                                             |   | $ | (1.15 | ) |   | $ | (1.94 | ) |   | $ | 0.26 |   |
| Diluted                                                                                                                                                                           |   | $ | (1.15 | ) |   | $ | (1.94 | ) |   | $ | 0.26 |   |
|                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| AVERAGE COMMON SHARES OUTSTANDING:                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                                                                             |   |   | 9,411 |   |   |   | 9,683 |   |   |   | 10,238 |   |
| Diluted                                                                                                                                                                           |   |   | 9,416 |   |   |   | 9,683 |   |   |   | 10,239 |   |
|                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| See notes to consolidated financial statements.                                                                                                                                   |   |

----

Table of contents

| P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY AND OTHER COMPREHENSIVE INCOME (LOSS)YEARS ENDED DECEMBER 31, 2009, 2008 AND 2007(in thousands) |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                             |   | Common StockShares / Amount |   |   | Additional Paid-In Capital |   |   | Other Comprehensive Income (Loss) |   |   | Accumulated Other Comprehensive Income |   |   | Treasury Stock |   |   | Retained Earnings |   |   | Total |   |
|                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE— January 1, 2007                                                                                                                                                                                   |   |   | 10,303 |   |   | $ | 114 |   |   | $ | 77,309 |   |   |   |   |   | $ | 3,142 |   |   | $ | (17,869 | ) |   | $ | 122,332 |   |   | $ | 185,028 |   |
|                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Components of comprehensive income:                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 2,653 |   |   |   |   |   |   |   |   |   |   |   | 2,653 |   |   |   | 2,653 |   |
| Other comprehensive gain:                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Realized gain on marketable                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| securities, net of tax of $241                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (359 | ) |   |   | (359 | ) |   |   |   |   |   |   |   |   |   |   | (359 | ) |
| Unrealized loss on marketable                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| securities, net of tax of $(448)                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (862 | ) |   |   | (862 | ) |   |   |   |   |   |   |   |   |   |   | (862 | ) |
| Total comprehensive income                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 1,432 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Treasury stock repurchases                                                                                                                                                                                       |   |   | (471 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (7,331 | ) |   |   |   |   |   |   | (7,331 | ) |
| Exercise of stock options-shares                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| issued including tax benefits                                                                                                                                                                                    |   |   | 6 |   |   |   |   |   |   |   | 125 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 125 |   |
| Share-based compensation                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   | 123 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 123 |   |
|                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE— December 31, 2007                                                                                                                                                                                 |   |   | 9,838 |   |   |   | 114 |   |   |   | 77,557 |   |   |   |   |   |   |   | 1,921 |   |   |   | (25,200 | ) |   |   | 124,985 |   |   |   | 179,377 |   |
|                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Components of comprehensive income:                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | (18,765 | ) |   |   |   |   |   |   |   |   |   |   | (18,765 | ) |   |   | (18,765 | ) |
| Other comprehensive gain:                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Realized loss on marketable                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| securities, net of tax of $(6)                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 11 |   |   |   | 11 |   |   |   |   |   |   |   |   |   |   |   | 11 |   |
| Unrealized loss on marketable                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| securities, net of tax of $(1,072)                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,321 | ) |   |   | (1,321 | ) |   |   |   |   |   |   |   |   |   |   | (1,321 | ) |
| Total comprehensive loss                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | (20,075 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Treasury stock repurchases                                                                                                                                                                                       |   |   | (428 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (3,927 | ) |   |   |   |   |   |   | (3,927 | ) |
| Share-based compensation                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   | 102 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 102 |   |
|                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE— December 31, 2008                                                                                                                                                                                 |   |   | 9,410 |   |   |   | 114 |   |   |   | 77,659 |   |   |   |   |   |   |   | 611 |   |   |   | (29,127 | ) |   |   | 106,220 |   |   |   | 155,477 |   |
|                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Components of comprehensive income:                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | (10,847 | ) |   |   |   |   |   |   |   |   |   |   | (10,847 | ) |   |   | (10,847 | ) |
| Other comprehensive gain:                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Realized gain on marketable                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| securities, net of tax of $(9)                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (13 | ) |   |   | (13 | ) |   |   |   |   |   |   |   |   |   |   | (13 | ) |
| Unrealized gain on marketable                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| securities, net of tax of $(1,601)                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 2,465 |   |   |   | 2,465 |   |   |   |   |   |   |   |   |   |   |   | 2,465 |   |
| Total comprehensive loss                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | (8,395 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercise of stock options-shares                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| issued including tax benefits                                                                                                                                                                                    |   |   | 4 |   |   |   |   |   |   |   | 16 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 16 |   |
| Share-based compensation                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   | 29 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 29 |   |
|                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE— December 31, 2009                                                                                                                                                                                 |   |   | 9,414 |   |   | $ | 114 |   |   | $ | 77,704 |   |   |   |   |   |   | $ | 3,063 |   |   | $ | (29,127 | ) |   | $ | 95,373 |   |   | $ | 147,127 |   |
|                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 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, 2009, 2008 AND 2007(in thousands) |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                       |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| OPERATING ACTIVITIES:                                                                                                                                      |   |   |   |   |   |   |   |   |   |
| Net (loss) income                                                                                                                                          |   | $ | (10,847 | ) |   | $ | (18,765 | ) |   | $ | 2,653 |   |
| Adjustments to reconcile net (loss) income to net cash provided by operating activities:                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                                                                                              |   |   | 37,742 |   |   |   | 37,477 |   |   |   | 38,759 |   |
| Goodwill impairment charge                                                                                                                                 |   |   | - |   |   |   | 15,413 |   |   |   | - |   |
| Bad debt expense                                                                                                                                           |   |   | 837 |   |   |   | 295 |   |   |   | 573 |   |
| Stock compensation—net of excess tax benefits                                                                                                        |   |   | 29 |   |   |   | 102 |   |   |   | 118 |   |
| Non-compete agreement amortization—net of payments                                                                                                   |   |   | - |   |   |   | (17 | ) |   |   | - |   |
| Provision for deferred income taxes                                                                                                                        |   |   | (7,104 | ) |   |   | (10,929 | ) |   |   | 1,749 |   |
| Reclassification of unrealized loss on marketable equity securities                                                                                        |   |   | 1,471 |   |   |   | 5,227 |   |   |   | 95 |   |
| (Gain) loss on sale of marketable equity securities                                                                                                        |   |   | (189 | ) |   |   | 656 |   |   |   | (1,071 | ) |
| Loss (gain) on sale or disposal of equipment                                                                                                               |   |   | 931 |   |   |   | 952 |   |   |   | (48 | ) |
| Changes in operating assets and liabilities:                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts receivable                                                                                                                                        |   |   | (3,415 | ) |   |   | 14,505 |   |   |   | 2,585 |   |
| Prepaid expenses, inventories, and other assets                                                                                                            |   |   | 3,217 |   |   |   | 5,639 |   |   |   | (113 | ) |
| Income taxes refundable (payable)                                                                                                                          |   |   | 7,639 |   |   |   | 2,574 |   |   |   | (1,696 | ) |
| Trade accounts payable                                                                                                                                     |   |   | 136 |   |   |   | (11,007 | ) |   |   | 1,089 |   |
| Accrued expenses                                                                                                                                           |   |   | 1,691 |   |   |   | (1,477 | ) |   |   | 496 |   |
| Net cash provided by operating activities                                                                                                                  |   |   | 32,138 |   |   |   | 40,645 |   |   |   | 45,189 |   |
|                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| INVESTING ACTIVITIES:                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchases of property and equipment                                                                                                                        |   |   | (12,261 | ) |   |   | (60,218 | ) |   |   | (76,166 | ) |
| Proceeds from disposition of equipment                                                                                                                     |   |   | 9,460 |   |   |   | 11,398 |   |   |   | 22,273 |   |
| Changes in restricted cash                                                                                                                                 |   |   | 19 |   |   |   | 4,042 |   |   |   | (4,073 | ) |
| Sales of marketable equity securities                                                                                                                      |   |   | 399 |   |   |   | 611 |   |   |   | 1,622 |   |
| Purchases of marketable equity securities                                                                                                                  |   |   | - |   |   |   | (4,154 | ) |   |   | (5,389 | ) |
| Net cash used in investing activities                                                                                                                      |   |   | (2,383 | ) |   |   | (48,321 | ) |   |   | (61,733 | ) |
|                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| FINANCING ACTIVITIES:                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowings under line of credit                                                                                                                            |   |   | 322,365 |   |   |   | 546,144 |   |   |   | 508,076 |   |
| Repayments under line of credit                                                                                                                            |   |   | (326,109 | ) |   |   | (585,592 | ) |   |   | (484,322 | ) |
| Borrowings of long-term debt                                                                                                                               |   |   | 6,736 |   |   |   | 53,470 |   |   |   | 2,067 |   |
| Repayments of long-term debt                                                                                                                               |   |   | (16,879 | ) |   |   | (8,839 | ) |   |   | (2,704 | ) |
| Borrowings under margin account                                                                                                                            |   |   | 13,377 |   |   |   | 19,800 |   |   |   | - |   |
| Repayments under margin account                                                                                                                            |   |   | (20,249 | ) |   |   | (12,929 | ) |   |   | - |   |
| Repurchases of common stock                                                                                                                                |   |   | - |   |   |   | (3,927 | ) |   |   | (7,331 | ) |
| Stock compensation excess tax benefits                                                                                                                     |   |   | - |   |   |   | - |   |   |   | 5 |   |
| Exercise of stock options                                                                                                                                  |   |   | 16 |   |   |   | - |   |   |   | 120 |   |
| Net cash (used in) provided by financing activities                                                                                                        |   |   | (20,743 | ) |   |   | 8,127 |   |   |   | 15,911 |   |
|                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                                                                       |   |   | 9,012 |   |   |   | 451 |   |   |   | (633 | ) |
|                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS—Beginning of year                                                                                                          |   |   | 858 |   |   |   | 407 |   |   |   | 1,040 |   |
|                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS—End of year                                                                                                                |   | $ | 9,870 |   |   | $ | 858 |   |   | $ | 407 |   |
|                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION—                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash paid during the period for:                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                                                                                                                                                   |   | $ | 2,410 |   |   | $ | 2,430 |   |   | $ | 2,410 |   |
| Income taxes                                                                                                                                               |   | $ | 137 |   |   | $ | 303 |   |   | $ | 1,976 |   |
|                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| NONCASH INVESTING AND FINANCING ACTIVITIES—                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchases of revenue equipment included in accounts payable                                                                                                |   | $ | 38 |   |   | $ | 5,951 |   |   | $ | - |   |
|                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| See notes to consolidated financial statements.                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |

----

Table of contents

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

| 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     | 5-40 years           |

----

Table of contents

----

Table of contents

----

Table of contents

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

|                                |   | 2009           |   |   | 2008   |   |
|-------------------------------------|--------|----------------|--------|--------|--------|--------|
|                                |   | (in thousands) |   |
|                                |   |           |   |   |   |   |
| Billed                              |   | $              | 42,573 |   |   | $      | 41,247 |   |
| Unbilled                            |   |           | 5,998  |   |   |   | 4,724 |   |
| Allowance for doubtful accounts     |   |           | (2,660 | )      |   |   | (2,156 | ) |
|                                |   |           |   |   |   |   |   |   |
| Total accounts receivable—net |   | $              | 45,911 |   |   | $      | 43,815 |   |

----

Table of contents

|                            |   | 2009           |   |   | 2008   |   |   | 2007   |   |
|---------------------------------|--------|----------------|--------|--------|--------|--------|--------|--------|--------|
|                            |   | (in thousands) |   |
|                            |   |           |   |   |   |   |   |   |   |
| Balance—beginning of year |   | $              | 2,156  |   |   | $      | 1,891  |   |   | $ | 1,457 |   |
| Provision for bad debts         |   |           | 899    |   |   |   | 353    |   |   |   | 607 |   |
| Charge-offs                     |   |           | (395   | )      |   |   | (104   | )      |   |   | (361 | ) |
| Recoveries                      |   |           | -      |   |   |   | 16     |   |   |   | 188 |   |
| Balance—end of year       |   | $              | 2,660  |   |   | $      | 2,156  |   |   | $ | 1,891 |   |

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

----

Table of contents

|                                         |   | 2009           |   |   | 2008       |   |
|----------------------------------------------|--------|----------------|--------|--------|------------|--------|
|                                         |   | (in thousands) |   |
|                                         |   |           |   |   | Unrealized |   |   |   |   |   | Unrealized |   |
|                                         |   | Fair Value     |   |   | Losses     |   |   | Fair Value |   |   | Losses |   |
|                                         |   |           |   |   |       |   |   |   |   |   |   |   |
| Equity securities – Available for sale |   | $              | 756    |   |       | $      | 140 |   |   | $ | 4,775 |   |   | $ | 1,237 |   |
| Equity securities – Trading            |   |           | 62     |   |       |   | 1 |   |   |   | 372 |   |   |   | 67 |   |
|                                         |   |           |   |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Totals                                       |   | $              | 818    |   |       | $      | 141 |   |   | $ | 5,147 |   |   | $ | 1,304 |   |

----

Table of contents

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

|                        |   | 2009           |   |   | 2008   |   |    | 2007   |   |
|-----------------------------|--------|----------------|--------|--------|--------|--------|---------|--------|--------|
|                        |   | (in thousands) |   |
|                        |   |           |   |   |   |   |    |   |   |
| Goodwill, beginning of year |   | $              | -      |   |   | $      | 15,413  |   |   | $ | 15,413 |   |
| Goodwill acquired           |   |           | -      |   |   |   | -       |   |   |   | - |   |
| Goodwill impairment         |   |           | -      |   |   |   | (15,413 | )      |   |   | - |   |
|                        |   |           |   |   |   |   |    |   |   |   |   |   |
| Goodwill—end of year  |   | $              | -      |   |   | $      | -       |   |   | $ | 15,413 |   |

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

|                                         |   | 2009           |   |   | 2008   |   |
|----------------------------------------------|--------|----------------|--------|--------|--------|--------|
|                                         |   | (in thousands) |   |
|                                         |   |           |   |   |   |   |
| Payroll                                      |   | $              | 1,378  |   |   | $      | 1,039 |   |
| Accrued vacation                             |   |           | 2,020  |   |   |   | 1,932 |   |
| Taxes—other than income                |   |           | 2,264  |   |   |   | 2,174 |   |
| Interest                                     |   |           | 85     |   |   |   | 122 |   |
| Driver escrows                               |   |           | 832    |   |   |   | 938 |   |
| Margin account borrowings                    |   |           | -      |   |   |   | 6,871 |   |
| Self-insurance claims                        |   |           | 3,925  |   |   |   | 2,608 |   |
|                                         |   |           |   |   |   |   |   |   |
| Total accrued expenses and other liabilities |   | $              | 10,504 |   |   | $      | 15,684 |   |

----

Table of contents

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

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

|                                                   |   | 2009           |    |   | 2008   |   |
|--------------------------------------------------------|--------|----------------|---------|--------|--------|--------|
|                                                   |   | (in thousands) |    |
| Line of credit with a bank—due May 31, 2010, and |   |           |    |   |   |   |
| collateralized by accounts receivable (1)              |   | $              | -       |   |   | $      | 3,744 |   |
| Equipment financing (2)                                |   |           | 37,389  |   |   |   | 45,676 |   |
| Note payable (3)                                       |   |           | 144     |   |   |   | 980 |   |
| Other (4)                                              |   |           | -       |   |   |   | 1,020 |   |
| Total long-term debt                                   |   | $              | 37,533  |   |   | $      | 51,420 |   |
| Less current maturities                                |   |           | (10,331 | )      |   |   | (15,928 | ) |
|                                                   |   |           |    |   |   |   |   |   |
| Long-term debt—net of current maturities         |   | $              | 27,202  |   |   | $      | 35,492 |   |

| (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 1.95% (2.19% at December 31, 2009). 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 $135 million. The Company was in compliance with all provisions of the agreement throughout 2009. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Equipment financings consist of installment obligations for revenue equipment purchases, payable in various monthly installments with various maturity dates through March 2012, at a weighted average interest rate of 4.87% and collateralized by revenue equipment. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (4)   | 3.85% note to insurance premium finance company at December 31, 2008 with an original face amount of $1,740,528, paid in monthly installments of $147,615 through August 2009. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of contents

|   |   | (in thousands) |   |
|--------|--------|----------------|--------|
|   |   |           |   |
| 2010   |   | $              | 10,331 |   |
| 2011   |   |           | 20,334 |   |
| 2012   |   |           | 6,868  |   |
| 2013   |   |           | -      |   |
| 2014   |   |           | -      |   |
|   |   |           |   |   |
| Total  |   | $              | 37,533 |   |

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

----

Table of contents

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

|                                            |   | 2009           |    |   | 2008   |   |    | 2007   |   |
|-------------------------------------------------|--------|----------------|---------|--------|--------|--------|---------|--------|--------|
|                                            |   | (in thousands) |    |
|                                            |   |           |    |   |   |   |    |   |   |
| Net (loss) income                               |   | $              | (10,847 | )      |   | $      | (18,765 | )      |   | $ | 2,653 |   |
|                                            |   |           |    |   |   |   |    |   |   |   |   |   |
| Other comprehensive income (loss):              |   |           |    |   |   |   |    |   |   |   |   |   |
| Reclassification adjustment for realized losses |   |           |    |   |   |   |    |   |   |   |   |   |
| (gains) on marketable securities, included      |   |           |    |   |   |   |    |   |   |   |   |   |
| in net income (loss), net of income taxes       |   |           | (13     | )      |   |   | 11      |   |   |   | (359 | ) |
| Reclassification adjustment for unrealized      |   |           |    |   |   |   |    |   |   |   |   |   |
| losses on marketable securities, included in    |   |           |    |   |   |   |    |   |   |   |   |   |
| net income (loss), net of income taxes          |   |           | 941     |   |   |   | 3,214   |   |   |   | 55 |   |
| Change in fair value of marketable              |   |           |    |   |   |   |    |   |   |   |   |   |
| securities, net of income taxes                 |   |           | 1,524   |   |   |   | (4,535  | )      |   |   | (917 | ) |
|                                            |   |           |    |   |   |   |    |   |   |   |   |   |
| Total comprehensive (loss) income               |   | $              | (8,395  | )      |   | $      | (20,075 | )      |   | $ | 1,432 |   |

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

----

Table of contents

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

|                               |   | 2009           |   |   | 2008      |   |
|------------------------------------|--------|----------------|--------|--------|-----------|--------|
|                               |   | (in thousands) |   |
|                               |   | Current        |   |   | Long-Term |   |   | Current |   |   | Long-Term |   |
|                               |   |           |   |   |      |   |   |   |   |   |   |   |
| Deferred tax liabilities:          |   |           |   |   |      |   |   |   |   |   |   |   |
| Property and equipment             |   | $              | -      |   |      | $      | 52,646 |   |   | $ | - |   |   | $ | 60,011 |   |
| Unrealized gains on securities     |   |           | 1,955  |   |      |   | - |   |   |   | 345 |   |   |   | - |   |
| Prepaid expenses and other         |   |           | 1,988  |   |      |   | - |   |   |   | 3,584 |   |   |   | - |   |
|                               |   |           |   |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Total deferred tax liabilities     |   |           | 3,943  |   |      |   | 52,646 |   |   |   | 3,929 |   |   |   | 60,011 |   |
|                               |   |           |   |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Deferred tax assets:               |   |           |   |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for doubtful accounts    |   |           | 1,010  |   |      |   | - |   |   |   | 801 |   |   |   | - |   |
| Alternative minimum tax credit     |   |           | -      |   |      |   | 300 |   |   |   | - |   |   |   | 447 |   |
| Compensated absences               |   |           | 617    |   |      |   | - |   |   |   | 597 |   |   |   | - |   |
| Self-insurance allowances          |   |           | 844    |   |      |   | - |   |   |   | 248 |   |   |   | - |   |
| Share-based compensation           |   |           | -      |   |      |   | 339 |   |   |   | - |   |   |   | 328 |   |
| Goodwill                           |   |           | -      |   |      |   | 658 |   |   |   | - |   |   |   | 1,161 |   |
| Marketable equity securities       |   |           | 2,873  |   |      |   | - |   |   |   | 2,101 |   |   |   | - |   |
| Net operating loss carryover       |   |           | -      |   |      |   | - |   |   |   | - |   |   |   | 10,279 |   |
| Non-competition agreement          |   |           | -      |   |      |   | 324 |   |   |   | - |   |   |   | 412 |   |
| Other                              |   |           | -      |   |      |   | 25 |   |   |   | 25 |   |   |   | 30 |   |
|                               |   |           |   |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Total deferred tax assets          |   |           | 5,344  |   |      |   | 1,646 |   |   |   | 3,772 |   |   |   | 12,657 |   |
|                               |   |           |   |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Net deferred tax (asset) liability |   | $              | (1,401 | )      |      | $      | 51,000 |   |   | $ | 157 |   |   | $ | 47,354 |   |

|                                 |   | 2009           |   |   | 2008    |   |   | 2007   |   |
|--------------------------------------|--------|----------------|--------|--------|---------|--------|--------|--------|--------|
|                                 |   | (in thousands) |   |
|                                 |   | Amount         |   |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |
|                                 |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income tax at the                    |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| statutory federal rate               |   | $              | (6,042 | )      |    |   | 34.0   |   |   | $ | (9,989 | ) |   |   | 34.0 |   |   | $ | 1,571 |   |   |   | 34.0 |   |
| Nontaxable income                    |   |           | (341   | )      |    |   | 1.9    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Nondeductible expense                |   |           | 225    |   |    |   | (1.3   | )      |   |   | 923 |   |   |   | (3.1 | ) |   |   | 381 |   |   |   | 8.3 |   |
| State income taxes—net         |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| of federal benefit                   |   |           | (766   | )      |    |   | 4.4    |   |   |   | (1,549 | ) |   |   | 5.2 |   |   |   | 14 |   |   |   | 0.3 |   |
| Total income tax (benefit) provision |   | $              | (6,924 | )      |    |   | 39.0   |   |   | $ | (10,615 | ) |   |   | 36.1 |   |   | $ | 1,966 |   |   |   | 42.6 |   |

----

Table of contents

|                                 |   | 2009           |   |   | 2008   |   |    | 2007   |   |
|--------------------------------------|--------|----------------|--------|--------|--------|--------|---------|--------|--------|
|                                 |   | (in thousands) |   |
| Current:                             |   |           |   |   |   |   |    |   |   |
| Federal                              |   | $              | -      |   |   | $      | (26     | )      |   | $ | 305 |   |
| State                                |   |           | 180    |   |   |   | 340     |   |   |   | (88 | ) |
|                                 |   |           | 180    |   |   |   | 314     |   |   |   | 217 |   |
| Deferred:                            |   |           |   |   |   |   |    |   |   |   |   |   |
| Federal                              |   |           | (7,209 | )      |   |   | (8,865  | )      |   |   | 1,295 |   |
| State                                |   |           | 105    |   |   |   | (2,064  | )      |   |   | 454 |   |
|                                 |   |           | (7,104 | )      |   |   | (10,929 | )      |   |   | 1,749 |   |
|                                 |   |           |   |   |   |   |    |   |   |   |   |   |
| Total income tax (benefit) provision |   | $              | (6,924 | )      |   | $      | (10,615 | )      |   | $ | 1,966 |   |

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

----

Table of contents

|                                         |   | SharesUnderOption |    |   | Weighted-AverageExercise Price |   |
|----------------------------------------------|--------|-------------------|---------|--------|--------------------------------|--------|
|                                         |   |              |    |   |                           |   |
| Outstanding—January 1, 2007:           |   |              | 284,500 |   |                           | $      | 22.83 |   |
| Granted                                      |   |              | 16,000  |   |                           |   | 22.92 |   |
| Exercised                                    |   |              | (6,000  | )      |                           |   | 19.95 |   |
| Canceled                                     |   |              | (46,000 | )      |                           |   | 23.34 |   |
|                                         |   |              |    |   |                           |   |   |   |
| Outstanding—December 31, 2007:         |   |              | 248,500 |   |                           | $      | 22.81 |   |
| Granted                                      |   |              | 16,000  |   |                           |   | 14.98 |   |
| Canceled                                     |   |              | (10,000 | )      |                           |   | 22.68 |   |
|                                         |   |              |    |   |                           |   |   |   |
| Outstanding—December 31, 2008:         |   |              | 254,500 |   |                           | $      | 22.32 |   |
| Granted                                      |   |              | 16,000  |   |                           |   | 3.84 |   |
| Exercised                                    |   |              | (4,000  | )      |                           |   | 3.84 |   |
| Canceled                                     |   |              | (80,000 | )      |                           |   | 22.60 |   |
|                                         |   |              |    |   |                           |   |   |   |
| Outstanding—December 31, 2009:         |   |              | 186,500 |   |                           | $      | 21.02 |   |
|                                         |   |              |    |   |                           |   |   |   |
| Options exercisable—December 31, 2009: |   |              | 186,500 |   |                           | $      | 21.02 |   |

----

Table of contents

|                              | 2009      | 2008                    | 2007                    |
|-----------------------------------|-----------|-------------------------|-------------------------|
|                              |      |                    |                    |
| Dividend yield                    | 0%        | 0%                      | 0%                      |
| Volatility range                  | 58.07%    | 36.67%—38.54%     | 37.34%—38.54%     |
| Risk-free rate range              | 1.57%     | 2.50%—4.38%       | 4.38%—4.48%       |
| Expected life                     | 4.4 years | 4.3 years—5 years | 2.5 years—5 years |
| Fair value of options (per share) | $1.84     | $4.98—$8.89       | $6.32—$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, 2009                                                                                                                                                                                                                                         |   |                | 254,500 |   |                             | $      | 22.32  |                                         |   |   |                       |   |   |   |
| Granted                                                                                                                                                                                                                                                                |   |                | 16,000  |   |                             |   | 3.84   |                                         |   |   |                       |   |   |   |
| Exercised                                                                                                                                                                                                                                                              |   |                | (4,000  | )      |                             |   | 3.84   |                                         |   |   |                       |   |   |   |
| Canceled/forfeited/expired                                                                                                                                                                                                                                             |   |                | (80,000 | )      |                             |   | 22.60  |                                         |   |   |                       |   |   |   |
| Outstanding at December 31, 2009                                                                                                                                                                                                                                       |   |                | 186,500 |   |                             | $      | 21.02  |                                         |   |   | 2.6                        |   |   | $ | 77,880 |   |
|                                                                                                                                                                                                                                                                   |   |                |    |   |                             |   |   |                                         |   |   |                       |   |   |   |   |   |
| Fully vested andexercisable at December 31, 2009                                                                                                                                                                                                                       |   |                | 186,500 |   |                             | $      | 21.02  |                                         |   |   | 2.6                        |   |   | $ | 77,880 |   |
| ___________________________                                                                                                                                                                                                                                            |   |                |    |   |                             |   |   |                                         |   |   |                       |   |   |   |   |   |
| * 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, 2009, was $10.33. |   |

|                           |   | Number of Options |    |   | Weighted- Average Grant Date Fair Value |   |
|--------------------------------|--------|-------------------|---------|--------|-----------------------------------------|--------|
|                           |   |              |    |   |                                    |   |
| Nonvested at January 1, 2009   |   |              | -       |   |                                    | $      | - |   |
| Granted                        |   |              | 16,000  |   |                                    |   | 1.84 |   |
| Vested                         |   |              | (16,000 | )      |                                    |   | 1.84 |   |
| Nonvested at December 31, 2009 |   |              | -       |   |                                    | $      | - |   |

----

Table of contents

| Exercise Price |   | Shares Under Outstanding Options |   | Weighted-Average Remaining Contractual Term |   | Shares Under Exercisable Options |
|----------------|--------|----------------------------------|--------|---------------------------------------------|--------|----------------------------------|
|           |   |                             |   | (in years)                                  |   |                             |
| $3.84          |   | 12,000                           |   | 4.2                                         |   | 12,000                           |
| $14.98         |   | 16,000                           |   | 3.2                                         |   | 16,000                           |
| $18.27         |   | 10,000                           |   | 0.2                                         |   | 10,000                           |
| $19.88         |   | 12,500                           |   | 2.8                                         |   | 12,500                           |
| $22.92         |   | 14,000                           |   | 2.2                                         |   | 14,000                           |
| $23.22         |   | 108,000                          |   | 2.7                                         |   | 108,000                          |
| $26.73         |   | 14,000                           |   | 1.4                                         |   | 14,000                           |
|           |   | 186,500                          |   | 2.6                                         |   | 186,500                          |

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

|                                               |   | For the Year Ended December 31,       |    |
|----------------------------------------------------|--------|---------------------------------------|---------|
|                                               |   | 2009                                  |    |   | 2008 |   |   | 2007 |   |
|                                               |   | (in thousands, except per share data) |    |
|                                               |   |                                  |    |   |   |   |   |   |   |
| Net (loss) income                                  |   | $                                     | (10,847 | ) |   | $ | (18,765 | ) |   | $ | 2,653 |   |
|                                               |   |                                  |    |   |   |   |   |   |   |   |   |   |
| Basic weighted average common shares outstanding   |   |                                  | 9,411   |   |   |   | 9,683 |   |   |   | 10,238 |   |
| Dilutive effect of common stock equivalents        |   |                                  | 5       |   |   |   | - |   |   |   | 1 |   |
|                                               |   |                                  |    |   |   |   |   |   |   |   |   |   |
| Diluted weighted average common shares outstanding |   |                                  | 9,416   |   |   |   | 9,683 |   |   |   | 10,239 |   |
|                                               |   |                                  |    |   |   |   |   |   |   |   |   |   |
| Basic (loss) earnings per share                    |   | $                                     | (1.15   | ) |   | $ | (1.94 | ) |   | $ | 0.26 |   |
|                                               |   |                                  |    |   |   |   |   |   |   |   |   |   |
| Diluted (loss) earnings per share                  |   | $                                     | (1.15   | ) |   | $ | (1.94 | ) |   | $ | 0.26 |   |

----

Table of contents

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

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

| 2010   |   | $      | 296,090 |   |
|--------|--------|--------|---------|--------|
| 2011   |   |   | 187,000 |   |
| 2012   |   |   | 192,000 |   |
| 2013   |   |   | 80,000  |   |
|   |   |   |    |   |
| Total  |   | $      | 755,090 |   |

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

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

----

Table of contents

|                         |   | Total          |   |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
|------------------------------|--------|----------------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
|                         |   | (in thousands) |   |
|                         |   |           |   |   |    |   |   |    |   |   |    |   |
| Marketable equity securities |   | $              | 14,921 |   |    | $      | 14,921 |    |   |   | -       |   |   |   | - |   |

|           |   | 2009           |   |   | 2008                 |   |
|----------------|--------|----------------|--------|--------|----------------------|--------|
|           |   | Carrying Value |   |   | Estimated Fair Value |   |   | Carrying Value |   |   | Estimated Fair Value |   |
|           |   | (in thousands) |   |
|           |   |           |   |   |                 |   |   |   |   |   |   |   |
| Long-term debt |   | $              | 37,533 |   |                 | $      | 37,238 |   |   | $ | 47,676 |   |   | $ | 47,432 |   |

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

----

Table of contents

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

|                                |   | 2009                                  |   |
|-------------------------------------|--------|---------------------------------------|--------|
|                                |   | Three Months Ended                    |   |
|                                |   | March 31                              |   |   | June 30 |   |   | September 30 |   |   | December 31 |   |
|                                |   | (in thousands, except per share data) |   |
|                                |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Operating revenues                  |   | $                                     | 65,818 |   |   | $ | 68,476 |   |   | $ | 76,743 |   |   | $ | 80,872 |   |
| Operating expenses                  |   |                                  | 69,432 |   |   |   | 72,040 |   |   |   | 78,092 |   |   |   | 86,999 |   |
|                                |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating (loss) income             |   |                                  | (3,614 | ) |   |   | (3,564 | ) |   |   | (1,349 | ) |   |   | (6,127 | ) |
| Non-operating (expense) income      |   |                                  | (867   | ) |   |   | 200 |   |   |   | (160 | ) |   |   | 82 |   |
| Interest expense                    |   |                                  | 664    |   |   |   | 629 |   |   |   | 563 |   |   |   | 517 |   |
| Income tax (benefit) expense        |   |                                  | (1,799 | ) |   |   | (1,637 | ) |   |   | (842 | ) |   |   | (2,647 | ) |
|                                |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income                   |   | $                                     | (3,346 | ) |   | $ | (2,356 | ) |   | $ | (1,230 | ) |   | $ | (3,915 | ) |
|                                |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income per common share: |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                               |   | $                                     | (0.36  | ) |   | $ | (0.25 | ) |   | $ | (0.13 | ) |   | $ | (0.42 | ) |
| Diluted                             |   | $                                     | (0.36  | ) |   | $ | (0.25 | ) |   | $ | (0.13 | ) |   | $ | (0.42 | ) |
|                                |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average common shares outstanding:  |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                               |   |                                  | 9,410  |   |   |   | 9,410 |   |   |   | 9,411 |   |   |   | 9,413 |   |
| Diluted                             |   |                                  | 9,410  |   |   |   | 9,412 |   |   |   | 9,415 |   |   |   | 9,418 |   |

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

----

Table of contents

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

Item 9A. Controls and Procedures.

----

Table of contents

Item 9B. Other Information.

----

Table of contents

Item 10. Directors, Executive Officers and Corporate Governance.

Item 11. Executive Compensation.

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

|  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     |   |                                                                                        | 186,500 |   |                                                                        | $      | 21.02  |                                                                                         |   |   | 686,000 |   |
|                                                       |   |                                                                                        |    |   |                                                                        |   |   |                                                                                         |   |   |   |   |
| Equity Compensation Plans not approved by Security Holders |   |                                                                                        | -0-     |   |                                                                        |   | -0-    |                                                                                         |   |   | -0- |   |
|                                                       |   |                                                                                        |    |   |                                                                        |   |   |                                                                                         |   |   |   |   |
| Total                                                      |   |                                                                                        | 186,500 |   |                                                                        | $      | 21.02  |                                                                                         |   |   | 686,000 |   |

----

Table of contents

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

Item 14. Principal Accounting Fees and Services.

Item 15. Exhibits, Financial Statement Schedules.

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

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

Report of Independent Registered Public Accounting Firm - Grant Thornton LLP

Consolidated Balance Sheets - December 31, 2009 and 2008

Consolidated Statements of Operations - Years ended December 31, 2009, 2008 and 2007

Consolidated Statements of Shareholders’ Equity and Other Comprehensive Income (Loss) - Years ended   December 31, 2009, 2008 and 2007

Consolidated Statements of Cash Flows - Years ended December 31, 2009, 2008 and 2007

Notes to Consolidated Financial Statements

| (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 $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      |   | Fourth Amendment to Loan Agreement dated July 26, 1994 among First Tennessee Bank National Association, Registrant and P.A.M. Transport, Inc. together with Promissory Note (Exh. 4.6, 2007 10-K)                                                                             |
|      |   |                                                                                                                                                                                                                                                                          |
| *10.1     | (1)    | Employment Agreement between the Registrant and Daniel H. Cushman, dated June 29, 2009 (Exh. 10.2, 7/10/09 8-K)                                                                                                                                                               |
|      |   |                                                                                                                                                                                                                                                                          |
| *10.2     | (1)    | Employment Agreement between the Registrant and W. Clif Lawson, dated June 1, 2006 (Exh. 10.2, 7/28/06 8-K)                                                                                                                                                                   |
|      |   |                                                                                                                                                                                                                                                                          |
| *10.3     | (1)    | Employment Agreement between the Registrant and Larry J. Goddard, dated June 1, 2006 (Exh. 10.3, 7/28/06 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, 3/07/05 8-K)                                                                                                                                                                                                                  |
|      |   |                                                                                                                                                                                                                                                                          |
| *10.4.2   | (1)    | 2006 Stock Option Plan (Exh. 10.1, 5/31/06 8-K)                                                                                                                                                                                                                               |
|      |   |                                                                                                                                                                                                                                                                          |
| *10.5     | (1)    | Employee Non-Qualified Stock Option Agreement (Exh. 10.1, 9/30/04 10-Q)                                                                                                                                                                                                       |
|      |   |                                                                                                                                                                                                                                                                          |
| *10.6     | (1)    | Director Non-Qualified Stock Option Agreement (Exh. 10.2, 9/30/04 10-Q)                                                                                                                                                                                                       |

----

Table of contents

|                                                                    |   |                                                                                                                                                            |
|-------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *10.6.1                                                                 | (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, 5/31/06 8-K) |
|                                                                    |   |                                                                                                                                                            |
| *10.7                                                                   | (1)    | Incentive Compensation Plan (Exh. 10.3, 7/10/09 8-K)                                                                                                            |
|                                                                    |   |                                                                                                                                                            |
| *10.8                                                                   | (1)    | Consulting Agreement between the Registrant and Manuel J. Moroun, dated December 6, 2007 (Exh. 10.10, 2007 10-K)                                                |
|                                                                    |   |                                                                                                                                                            |
|   21.1                                                        |   | Subsidiaries of the Registrant                                                                                                                                  |
|                                                                    |   |                                                                                                                                                            |
|   23.1                                                        |   | Consent of Grant Thornton LLP                                                                                                                                   |
|                                                                    |   |                                                                                                                                                            |
|   31.1                                                        |   | Rule 13a-14(a) Certification of Principal Executive Officer                                                                                                     |
|                                                                    |   |                                                                                                                                                            |
|   31.2                                                        |   | Rule 13a-14(a) Certification of Principal Financial Officer                                                                                                     |
|                                                                    |   |                                                                                                                                                            |
|   32.1                                                        |   | Section 1350 Certifications of Chief Executive Officer and Chief Financial Officer                                                                              |
|                                                                    |   |                                                                                                                                                            |
| (1)  Management contract or compensatory plan or arrangement. |

----

Table of contents

SIGNATURES

|                                                                                                                                                                                                          |   | P.A.M. TRANSPORTATION SERVICES, INC.                  |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|--------|
|                                                                                                                                                                                                          |   |                                                  |   |
| Dated: March 15, 2010                                                                                                                                                                                         | By:    | /s/ Daniel H. Cushman                                 |   |
|                                                                                                                                                                                                          |   | DANIEL H. CUSHMAN                                     |   |
|                                                                                                                                                                                                          |   | President and Chief Executive Officer                 |   |
|                                                                                                                                                                                                          |   | (principal executive officer)                         |   |
|                                                                                                                                                                                                          |   |                                                  |   |
| Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. |   |
|                                                                                                                                                                                                          |   |                                                  |   |
|                                                                                                                                                                                                          |   |                                                  |   |
| Dated: March 15, 2010                                                                                                                                                                                         | By:    | /s/ Frederick P. Calderone                            |   |
|                                                                                                                                                                                                          |   | FREDERICK P. CALDERONE, Director                      |   |
|                                                                                                                                                                                                          |   |                                                  |   |
| Dated: March 15, 2010                                                                                                                                                                                         | By:    | /s/ Frank L. Conner                                   |   |
|                                                                                                                                                                                                          |   | FRANK L. CONNER, Director                             |   |
|                                                                                                                                                                                                          |   |                                                  |   |
| Dated: March 15, 2010                                                                                                                                                                                         | By:    | /s/ Daniel H. Cushman                                 |   |
|                                                                                                                                                                                                          |   | DANIEL H. CUSHMAN                                     |   |
|                                                                                                                                                                                                          |   | President and Chief Executive Officer, Director       |   |
|                                                                                                                                                                                                          |   | (principal executive officer)                         |   |
|                                                                                                                                                                                                          |   |                                                  |   |
| Dated: March 15, 2010                                                                                                                                                                                         | By:    | /s/ W. Scott Davis                                    |   |
|                                                                                                                                                                                                          |   | W. SCOTT DAVIS, Director                              |   |
|                                                                                                                                                                                                          |   |                                                  |   |
| Dated: March 15, 2010                                                                                                                                                                                         | By:    | /s/ Christopher L. Ellis                              |   |
|                                                                                                                                                                                                          |   | CHRISTOPHER L. ELLIS, Director                        |   |
|                                                                                                                                                                                                          |   |                                                  |   |
| Dated: March 15, 2010                                                                                                                                                                                         | By:    | /s/ Larry J. Goddard                                  |   |
|                                                                                                                                                                                                          |   | LARRY J. GODDARD                                      |   |
|                                                                                                                                                                                                          |   | Vice President-Finance, Chief Financial Officer,      |   |
|                                                                                                                                                                                                          |   | Secretary and Treasurer                               |   |
|                                                                                                                                                                                                          |   | (principal financial and accounting officer)          |   |
|                                                                                                                                                                                                          |   |                                                  |   |
| Dated: March 15, 2010                                                                                                                                                                                         | By:    | /s/ Manuel J. Moroun                                  |   |
|                                                                                                                                                                                                          |   | MANUEL J. MOROUN, Director                            |   |
|                                                                                                                                                                                                          |   |                                                  |   |
| Dated: March 15, 2010                                                                                                                                                                                         | By:    | /s/ Matthew T. Moroun                                 |   |
|                                                                                                                                                                                                          |   | MATTHEW T. MOROUN, Director and Chairman of the Board |   |
|                                                                                                                                                                                                          |   |                                                  |   |
| Dated: March 15, 2010                                                                                                                                                                                         | By:    | /s/ Daniel C. Sullivan                                |   |
|                                                                                                                                                                                                          |   | DANIEL C. SULLIVAN, Director                          |   |
|                                                                                                                                                                                                          |   |                                                  |   |
| Dated: March 15, 2010                                                                                                                                                                                         | 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 $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      |   | Fourth Amendment to Loan Agreement dated July 26, 1994 among First Tennessee Bank National Association, Registrant and P.A.M. Transport, Inc. together with Promissory Note (Exh. 4.6, 2007 10-K)                                                                             |
|      |   |                                                                                                                                                                                                                                                                          |
| *10.1     | (1)    | Employment Agreement between the Registrant and Daniel H. Cushman, dated June 29, 2009 (Exh. 10.2, 7/10/09 8-K)                                                                                                                                                               |

----

Table of contents

|                                                                    |   |                                                                                                                                                            |
|-------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *10.2                                                                   | (1)    | Employment Agreement between the Registrant and W. Clif Lawson, dated June 1, 2006 (Exh. 10.2, 7/28/06 8-K)                                                     |
|                                                                    |   |                                                                                                                                                            |
| *10.3                                                                   | (1)    | Employment Agreement between the Registrant and Larry J. Goddard, dated June 1, 2006 (Exh. 10.3, 7/28/06 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, 3/07/05 8-K)                                                                                                    |
|                                                                    |   |                                                                                                                                                            |
| *10.4.2                                                                 | (1)    | 2006 Stock Option Plan (Exh. 10.1, 5/31/06 8-K)                                                                                                                 |
|                                                                    |   |                                                                                                                                                            |
| *10.5                                                                   | (1)    | Employee Non-Qualified Stock Option Agreement (Exh. 10.1, 9/30/04 10-Q)                                                                                         |
|                                                                    |   |                                                                                                                                                            |
| *10.6                                                                   | (1)    | Director Non-Qualified Stock Option Agreement (Exh. 10.2, 9/30/04 10-Q)                                                                                         |
|                                                                    |   |                                                                                                                                                            |
| *10.6.1                                                                 | (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, 5/31/06 8-K) |
|                                                                    |   |                                                                                                                                                            |
| *10.7                                                                   | (1)    | Incentive Compensation Plan (Exh. 10.3, 7/10/09 8-K)                                                                                                            |
|                                                                    |   |                                                                                                                                                            |
| *10.8                                                                   | (1)    | Consulting Agreement between the Registrant and Manuel J. Moroun, dated December 6, 2007 (Exh. 10.10, 2007 10-K)                                                |
|                                                                    |   |                                                                                                                                                            |
|   21.1                                                        |   | Subsidiaries of the Registrant                                                                                                                                  |
|                                                                    |   |                                                                                                                                                            |
|   23.1                                                        |   | Consent of Grant Thornton LLP                                                                                                                                   |
|                                                                    |   |                                                                                                                                                            |
|   31.1                                                        |   | Rule 13a-14(a) Certification of Principal Executive Officer                                                                                                     |
|                                                                    |   |                                                                                                                                                            |
|   31.2                                                        |   | Rule 13a-14(a) Certification of Principal Financial Officer                                                                                                     |
|                                                                    |   |                                                                                                                                                            |
|   32.1                                                        |   | Section 1350 Certifications of Chief Executive Officer and Chief Financial Officer                                                                              |
|                                                                    |   |                                                                                                                                                            |
| (1)  Management contract or compensatory plan or arrangement. |