For More Information:	FOR RELEASE
Craig M. Koven	April 27, 2009
Communications Manager	4:01 p.m. ET
(800) CELADON Ext. 7041
317-972-7041 Direct
317-408-4859 Mobile
ckoven@celadongroup.com

CELADON GROUP REPORTS THIRD FISCAL QUARTER FINANCIAL RESULTS

INDIANAPOLIS – Celadon Group, Inc. (NASDAQ:CLDN) today reported its financial and operating results for the three and nine months ended March 31, 2009, the third fiscal quarter of the Company's fiscal year ending June 30, 2009.

Revenue for the quarter decreased 23.0% to $106.9 million in the 2009 quarter from $138.9 million in the 2008 quarter. Freight revenue, which excludes fuel surcharges, was down 14.4% to $96.2 million in the 2009 quarter from $112.4 million in the 2008 quarter. Net income decreased to a loss of $2.1 million in the 2009 quarter from income of $0.1 million in the 2008 quarter. Earnings per diluted share decreased to a loss of $0.10 in the 2009 quarter from income of $0.01 in the 2008 quarter.

For the nine months ended March 31, 2009 revenue decreased 9.2% to $373.4 million from $411.3 million for the same period last year. Freight revenue, which excludes fuel surcharges, was down 10.8% to $304.0 million in 2009 from $340.8 million for the same period last year. Net income decreased 45.5% to $2.4 million in 2009 from $4.4 million for the same period last year. Earnings per diluted share decreased by 42.1% to $0.11 in 2009 from $0.19 for the same period last year.

Celadon Chairman and CEO Steve Russell commented on the March 2009 quarter, "The 10 cents per share loss was the first loss in over seven years. The losses were sustained in January and February, with a profit earned in the month of March. Although the March quarter is traditionally the slowest from a seasonal perspective, January and February 2009 financial results were heavily impacted by major declines in freight volumes between the U.S. and Mexico and Canada. U.S. government surface transportation statistics indicate a decline of 27% for the month of January 2009 versus January 2008. A decline in U.S. imports, relating to the weakness of the U.S. economy, we believe was a principal factor. Secondly, the decline in the value of the Mexican peso, from 10 pesos to the U.S. dollar to 14 pesos to the dollar, adversely impacted U.S. exports to Mexico. This dramatic decline in the peso's value hurt Mexican imports in the period, but we believe will have a positive impact on its exports in the future. At the current exchange rate, Mexico has become much more competitive with China.

In total, billed miles in the quarter for the Company declined by about 11%, when compared with prior year, with billed miles for movements between the U.S. and Mexico and Canada having declined by 26%, while domestic U.S. billed miles improved by 2.4%. The 26% decline in international freight had an adverse impact on earnings per share of approximately 15 cents between the March 2009 and March 2008 quarters.

Rates per loaded mile declined about 2% between the two quarters relating to the overall freight environment, where supply has continued to exceed demand.

On the positive side, our efforts related to fuel conservation continues to make progress, with improvements in miles per gallon resulting from these efforts. Our efforts in the fuel efficiency area allowed us to achieve the highest possible score, and an Excellence Award from the EPA SmartWay Partnership. Further, reductions in staff, freezing of salaries, and implementation of a 'hiring frost' have contributed to a lower cost structure for the company.

We are pleased with the results of the acquisition of certain assets of Continental Express in early December 2008. The addition of some excellent customers has contributed to our domestic U.S. miles in the quarter being up about 2% from the March 2008 quarter despite a meaningful decline in total industry truckload moves compared with last year. We have retained the intermodal business of Continental Express, and now, for the first time in Celadon's history, we are providing intermodal service to our customers. We have opened a Little Rock facility, and have succeeded in disposing of a meaningful group of the tractors acquired in the transaction.

From a financial standpoint, our balance sheet remains strong with balance sheet debt of only $59.3 million at March 31, 2009. With $50.4 million available on our bank revolving credit line at March 31, 2009, coupled with our current cash flow from operations, we are comfortable with our liquidity position."

Conference Call Information

An investor conference call is scheduled for Tuesday at 10:00 a.m. ET. Steve Russell and other members of management will discuss the results of the quarter. To listen and participate in the question-and-answer exchange, dial 866-700-7173 (international calls 617-213-8838) pin number 44626432 a few minutes prior to the starting time. A replay will be available through June 28 by dialing 888-286-8010 (international calls 617-801-6888) and entering call back code 49426916.

This call is being webcast by CCBN and can be accessed on Celadon's web site at http://www.celadongroup.com.  Any statistical and financial information that is discussed during the conference call also will be available at http://www.celadongroup.com.

Celadon Group Inc. (www.celadongroup.com), through its subsidiaries, primarily provides long-haul, full-truckload freight service across the United States, Canada and Mexico. The company also owns TruckersB2B Inc. (www.truckersb2b.com) which provides cost savings to member fleets, and Celadon Dedicated Services, which provides supply chain management solutions, such as warehousing and dedicated fleet services.

This press release and statements made by Celadon in its stockholder reports and public filings, as well as oral public statements by Celadon representatives, contain certain forward-looking information, usually identified by words such as "anticipates," "believes," "estimates," "projects,"  “intends,” expects," “plans,” or similar expressions.  These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Such statements are based upon the current beliefs and expectations of Celadon's management and are subject to significant risks and uncertainties.  Actual results may differ from those set forth in forward-looking statements.  In this press release, the statements relating to our liquidity position are forward-looking statements.  Such items have not been subject to all of the review procedures associated with the release of actual financial results and are premised on certain assumptions.  The following factors, among others, could cause actual results to differ materially from those in forward-looking statements: excess tractor and trailer capacity in the trucking industry; decreased demand for our services or loss of one or more of our major customers; surplus inventories; recessionary economic cycles and downturns in customers' business cycles; strikes, work slow downs, or work stoppages at our facilities, or at customer, port, border crossing, or other shipping related facilities; our ability to execute our strategic plan; increases in compensation for and difficulty in attracting and retaining qualified drivers and independent contractors; increases in insurance premiums and deductible amounts; elevated experience in the frequency or severity of claims relating to accident, cargo, workers' compensation, health, and other matters; fluctuations in claims expenses that result from high self-insured retention amounts and differences between estimates used in establishing and adjusting claims reserves and actual results over time; increases or rapid fluctuations in fuel prices, as well as fluctuations in hedging activities and surcharge collection, the volume and terms of diesel purchase commitments, interest rates, fuel taxes, tolls, and license and registration fees; fluctuations in foreign currency exchange rates; increases in the prices paid for new revenue equipment; increases in interest rates or decreased availability of capital or other sources of financing for revenue equipment; decreases in the resale value of our used equipment; seasonal factors such as harsh weather conditions that increase operating costs; competition from trucking, rail, and intermodal competitors; regulatory requirements that increase costs or decrease efficiency, including revised hours-of-service requirements for drivers; our ability to identify acceptable acquisition candidates, consummate acquisitions, and integrate acquired operations; the timing of, and any rules relating to, the opening of the border to Mexican drivers; challenges associated with doing business internationally; our ability to retain key employees; and the effects of actual or threatened military action or terrorist attacks or responses, including security measures that may impede shipping efficiency, especially at border crossings.  Readers should review and consider the various disclosures made by Celadon in this press release, stockholder reports, and in its Forms 10-K, 10-Q, and other public filings.  Celadon disclaims any such obligation to update or alter its forward-looking statements whether as a result of new information, future events, or otherwise.

For a more detailed discussion of these factors, please refer to the various disclosures made by the Company in its press releases, stockholder reports, and filings with the Securities and Exchange Commission.

- tables follow -

Consolidated Balance Sheets

(Dollars in thousands, except par value)

	March 31, 2009			June 30, 2008
ASSETS	(unaudited)
Current assets:
Cash and cash equivalents	$	2,781		$	2,325
Trade receivables, net of allowance for doubtful accounts of $1,079 and $1,194 at March 31, 2009 and June 30, 2008, respectively		48,471			69,513
Prepaid expenses and other current assets		12,590			16,697
Tires in service		4,047			3,765
Income tax receivable		874			5,846
Deferred income taxes		3,734			3,035
Total current assets		72,497			101,181
Property and equipment		252,414			270,832
Less accumulated depreciation and amortization		69,091			64,633
Net property and equipment		183,323			206,199
Tires in service		1,374			1,483
Goodwill		19,137			19,137
Other assets		1,292			1,335
Total assets	$	277,623		$	329,335
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	6,858		$	6,910
Accrued salaries and benefits		10,272			11,358
Accrued insurance and claims		9,504			9,086
Accrued fuel expense		6,017			12,170
Other accrued expenses		11,360			11,916
Current maturities of long-term debt		1,048			8,290
Current maturities of capital lease obligations		6,608			6,454
Total current liabilities		51,667			66,184
Long-term debt, net of current maturities		14,661			45,645
Capital lease obligations, net of current maturities		37,019			42,117
Deferred income taxes		33,202			31,512
Minority interest		25			25
Stockholders' equity:
Common stock, $0.033 par value, authorized 40,000,000 shares; issued 23,842,177 and 23,704,046 shares at March 31, 2009 and June 30, 2008, respectively		787			782
Treasury stock at cost; 1,744,245 and 1,832,386 shares at March 31, 2009 and June 30, 2008, respectively		(12,025	)		(12,633	)
Additional paid-in capital		96,369			95,173
Retained earnings		63,270			60,881
Accumulated other comprehensive loss		(7,352	)		(351	)
Total stockholders' equity		141,049			143,852
Total liabilities and stockholders' equity	$	277,623		$	329,335

Key Operating Statistics

	For the three months ended						For the nine months ended
	March 31,						March 31,
	2009			2008			2009			2008
Average revenue per loaded mile (*)	$	1.455		$	1.501		$	1.484		$	1.502
Average revenue per total mile (*)	$	1.293		$	1.341		$	1.322		$	1.344
Average revenue per tractor per week (*)	$	2,136		$	2,661		$	2,365		$	2,688
Average miles per tractor per week		1,652			1,984			1,789			2,000
Average line-haul tractors		2,888			2,713			2,757			2,701
Tractors at end of period (**)		3,169			3,010			3,169			3,010
Trailers at end of period (**)		10,041			8,927			10,041			8,927
Operating Ratio (*)		101.9	%		97.9	%		96.9	%		96.1	%

*Freight revenue excluding fuel surcharge.

** Total fleet, including equipment operated by independent contractors and our Mexican subsidiary, Jaguar.

CONSOLIDATED INCOME STATEMENTS

(in thousands, except per share amounts)

	For the three months ended March 31,						For the nine months ended March 31,
	2009			2008			2009			2008
Revenue:
Freight revenue	$	96,152		$	112,401		$	303,979		$	340,779
Fuel surcharges		10,725			26,489			69,412			70,499
		106,877			138,890			373,391			411,278
Operating expenses:
Salaries, wages, and employee benefits		36,990			40,231			116,144			117,396
Fuel		22,146			41,421			100,093			112,466
Operations and maintenance		8,711			9,832			26,944			27,434
Insurance and claims		3,505			3,656			10,374			11,704
Depreciation and amortization		10,123			8,408			26,802			23,833
Revenue equipment rentals		7,774			6,376			20,814			20,025
Purchased transportation		12,469			19,362			40,989			62,927
Costs of products and services sold		1,486			1,426			4,620			4,862
Communications and utilities		1,386			1,302			3,734			3,785
Operating taxes and licenses		2,424			2,318			7,148			6,718
General and other operating		1,733			2,232			6,293			7,001
Total operating expenses		108,747			136,564			363,955			398,151
Operating income (loss)		(1,870	)		2,326			9,436			13,127
Other (income) expense:
Interest income		(15	)		(77	)		(26	)		(102	)
Interest expense		776			1,266			2,901			3,777
Other expense, net		60			42			47			152
Income (loss) before income taxes		(2,691	)		1,095			6,514			9,300
Provision (benefit) for income taxes		(613	)		946			4,124			4,927
Net income (loss)	$	(2,078	)	$	149		$	2,390		$	4,373
Earnings (loss) per common share:
Diluted earnings per share	$	(0.10	)	$	0.01		$	0.11		$	0.19
Basic earnings per share	$	(0.10	)	$	0.01		$	0.11		$	0.19
Average shares outstanding:
Diluted		21,792			21,910			21,955			22,852
Basic		21,792			21,722			21,706			22,607