[CNF LOGO]
                                                                   April 4, 1997

EBERHARD G.H. SCHMOLLER
Secretary


Dear Fellow Employee:

You  should  have  already   received  proxy  materials  for  the   Consolidated
Freightways,  Inc. (dba CNF Transportation  Inc.) Annual Meeting of Shareholders
to be held on April 28,  1997,  which were sent to you as a  participant  in the
Consolidated  Freightways,  Inc.  Thrift  and  Stock  Plan.  Included  in  those
materials  was a  blue-striped  card for your use in  instructing  T. Rowe Price
Trust Company,  the Plan trustee,  as to how you wish the shares of Consolidated
Freightways, Inc. credited to your account to be voted.

Due to a clerical error,  the blue-striped  instruction  card was  inadvertently
included  in the  proxy  materials  previously  sent  to  you.  Enclosed  is the
corrected  instruction card, which has a red stripe, as well as a duplicate copy
of the preferred  stock  direction form previously sent to you. Also enclosed is
an envelope to forward your  instructions  to First Chicago Trust Company of New
York, the Company's  stock transfer agent. IF YOU HAVE ALREADY GIVEN YOUR VOTING
INSTRUCTIONS  USING THE  BLUE-STRIPED  CARD,  YOU MUST  COMPLETE  AND RETURN THE
ENCLOSED  RED-STRIPED  CARD,  SINCE  ALL  VOTING  INSTRUCTIONS  RECEIVED  ON THE
BLUE-STRIPED CARD WILL BE DISREGARDED.

In order to vote the shares  credited to your  account,  you must  complete  and
return  the  enclosed  red-striped  card  giving  the  trustee  specific  voting
instructions for the common and preferred  shares. If you wish, you may sign and
return the red-striped card without giving specific voting  instructions and the
shares will be voted as recommended by the Consolidated Freightways,  Inc. Board
of  Directors.  The  red-striped  card will  direct the trustee to vote both the
common and the preferred  shares of stock credited to your account.  If you wish
to vote the preferred shares  differently than the common shares,  you must also
complete the enclosed duplicate  preferred stock direction form and return it to
First Chicago Trust Company of New York, along with the red-striped  card. Under
the terms of the Plan,  the  trustee  votes  the  shares of each  class of stock
credited to your account for which it does not receive valid voting instructions
on a timely basis in the same manner and  proportion as the shares in such class
of stock for which it does receive valid voting instructions.

Your   red-striped  card  and,  if  you  wish  to  vote  your  preferred  shares
differently,  your duplicate  preferred  stock  direction form, must be returned
directly  to First  Chicago  Trust  Company  of New York,  the  Company's  stock
transfer agent. Your instructions will be treated confidentially by the transfer
agent  and  the  trustee.   IN  ORDER  FOR  THE  TRUSTEE  TO  COMPLY  WITH  YOUR
INSTRUCTIONS,   FIRST  CHICAGO   TRUST  COMPANY  MUST  RECEIVE  YOUR   COMPLETED
RED-STRIPED INSTRUCTION CARD AND, IF APPLICABLE,  YOUR DUPLICATE PREFERRED STOCK
DIRECTION FORM, NO LATER THAN APRIL 22, 1997.


                                                     Sincerely,
                                                     /s/EBERHARD G.H. SCHMOLLER

             3240 HILLVIEW AVENUE, PALO ALTO, CA 94304, 415-494-2900