Tuesday, January 18, 2005, For Immediate Release

Press Release

Heartland Express, Inc. Reports Revenues and Earnings for the Fourth Quarter of 2004.

CORALVILLE, IOWA – January 18, 2005 – Heartland Express, Inc. (Nasdaq:  HTLD) announced today its financial results for the quarter and year ended December 31, 2004. For the fourth quarter, revenue increased 15.9%, to $119.4 million from $103.0 million in the fourth quarter of 2003. Net income was $16.6 million and basic earnings per share were $0.22. For the twelve months, revenue increased 12.8%,  to $457.1 million from $405.1 million during the same period in 2003. Net income for the twelve months was $62.4 million and basic earnings per share were $0.83.

Heartland Express, Inc. posted an operating ratio (operating expenses as a percentage of gross revenues) of 79.4%, and a net margin of 13.9% for the fourth quarter of 2004.  The Company ended the year with an operating ratio of 79.5% and a 13.7% net margin.    

The Company ended the year with cash, cash equivalents, and investments of $258.3 million, a $55.9 million increase from the $202.4 million reported on December 31, 2003.  Total assets increased to $517.0 million from $448.4 million at December 31, 2003. The Company’s balance sheet continues to be debt-free.

A strong freight demand and a tight market for experienced drivers continue in the truckload industry. In the first quarter of 2005, for the second year in a row, the Company is increasing driver pay by $0.03 per mile. These increases along with the increase implemented this past quarter for miles driven in the upper Northeastern United States has solidified Heartland’s industry leading driver compensation package.   

During the quarter, Heartland Express declared a regular quarterly cash dividend.  The quarterly dividend of $1,500,000 at the rate of $0.02 per share was paid on January 3, 2005 to shareholders of record at the close of business on December 23, 2004.  The Company has now paid a cash dividend for six consecutive quarters. In addition, the Company declared a 3-for-2 stock split, paid as a 50% stock dividend in the third quarter of 2004. This stock split increased the Company’s outstanding common stock from 50.0 million to 75.0 million shares. As a result, the Company’s annual cash dividend has increased to $6.0 million from $4.0 million because of the additional shares outstanding. All earnings per share data presented have been adjusted retroactively to reflect the effect of the stock dividend.

The replacement of the Company’s tractor fleet, scheduled to be completed by December 31, 2006, continued during the fourth quarter.  As of December 31, 2004 the Company has taken delivery of 800 new International 9400i model tractors.

Operating results for the fourth quarter of 2003 were impacted by adjustments pertaining to self-insurance accruals.  During the fourth quarter of 2003, the Company engaged consulting actuaries to assist in determining the liability for self insurance reserves.  As a result of the actuarial studies, management decreased the amount accrued for accident liability claims and increased the amount accrued for workers’ compensation claims.  This $5.4 million reserve adjustment, net of taxes, increased 2003 earnings by $0.07 per share.  Details of the adjustment are as follows (in millions):

Decrease in insurance and claims expense	$ (11.2)
Increase in salaries, wages, benefits (workers’ compensation)	2.9
Increase in operating income	8.3
Income taxes	(2.9)
Increase in net income	$     5.4

Net income for the fourth quarter of 2004 increased 21.1% over the fourth quarter of 2003, excluding the aforementioned $5.4 million insurance adjustment. Net income for the year increased 20.4% over 2003 excluding the insurance adjustment.

This press release may contain statements that might be considered forward-looking statements or predictions of future operations. Such statements are based on management’s belief or interpretation of information currently available. These statements and assumptions involve certain risks and uncertainties. Actual events may differ from these expectations as specified from time to time in filings with the Securities and Exchange Commission.

Contact:  Heartland Express, Inc. – John Cosaert – 319-545-2728

HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
	Three months ended		Twelve months ended
	December 31,		December 31,
	2004	2003	2004	2003
OPERATING REVENUE	$119,438,580	$103,015,958	$ 457,086,311	$ 405,116,097
OPERATING EXPENSES:
Salaries, wages, benefits	$  38,341,494	$  38,840,605	$ 157,505,082	$ 141,292,791
Rent and purchased transportation	8,137,147	10,793,789	36,757,494	49,988,074
Operations and maintenance	27,248,171	18,969,711	96,202,224	75,516,232
Taxes and licenses	2,357,922	2,139,066	8,996,380	8,402,986
Insurance and claims	6,089,455	(7,732,134)	16,544,050	2,187,537
Communications and utilities	839,546	841,447	3,668,494	3,604,661
Depreciation	8,413,915	7,100,937	29,628,157	26,533,937
Other operating expenses	3,465,200	3,352,669	14,401,075	12,538,652
Gain on disposal of fixed assets	(75,027)	(38,813)	(174,831)	(45,782)
	$  94,817,823	$  74,267,277	$ 363,528,125	$ 320,019,088
Operating income	$  24,620,757	$  28,748,681	$   93,558,186	$   85,097,009
Interest income	1,046,434	543,800	3,070,956	2,045,793
Income before income taxes	$  25,667,191	$  29,292,481	$   96,629,142	$   87,142,802
Federal and state income taxes	9,111,854	10,252,369	34,182,554	29,921,477
Net income	$  16,555,337	$  19,040,112	$   62,446,588	$   57,221,325
Earnings per common share:
Basic earnings per share	$             0.22	$             0.25	$              0.83	$             0.76
Basic weighted average shares
outstanding	75,000,000	75,000,000	75,000,000	75,000,000

HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS	December 31,	December 31,
	2004	2003
CURRENT ASSETS
Cash and short term investments	$      258,329,707	$      202,431,155
Trade receivables	37,102,813	36,836,728
Prepaid tires	2,692,090	2,529,580
Deferred income taxes	24,964,000	21,308,000
Other current assets	158,267	673,101
Total current assets	$      323,246,877	$      263,778,564
PROPERTY AND EQUIPMENT	$      253,648,785	$      232,650,992
Less accumulated depreciation	68,973,751	56,951,186
	$      184,675,034	$      175,699,806
OTHER ASSETS	$          9,089,940	$          8,928,186
	$      517,011,851	$      448,406,556
LIABILITIES AND STOCKHOLDERS’
EQUITY
CURRENT LIABILITIES
Accounts payable & accrued liabilities	$        9,722,099	$        15,684,826
Accrued expenses	63,142,908	53,724,940
Income taxes payable	7,918,914	7,720,875
Total current liabilities	$        80,783,921	$        77,130,641
DEFERRED INCOME TAXES	$        46,885,000	$        39,760,000
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Capital stock: Common, $.01 par value;                                  authorized 395,000,000 shares; issued and           outstanding 75,000,000 shares in 2004 and                         50,000,000 in 2003	$             750,000	$             500,000
Additional paid-in capital	8,510,305	8,510,305
Retained earnings	380,906,884	323,710,296
	$      390,167,189	$      332,720,601
Less  unearned compensation	(824,259)	(1,204,686)
	$      389,342,930	$      331,515,915
	$      517,011,851	$      448,406,556