Exhibit 99.3

              COVENANT TRANSPORT UPDATES THIRD QUARTER EXPECTATIONS

CHATTANOOGA,   TENNESSEE   -  October  6,  2004  -  Covenant   Transport,   Inc.
(Nasdaq/NMS:CVTI)  announced  today  updated  earnings  guidance  for the  third
quarter of 2004.  The Company  expects to release actual results for the quarter
and nine  months  ended  September  30,  2004,  after the close of the market on
October 18.

Chairman,  President,  and Chief Executive Officer David R. Parker stated,  "Our
present  estimate is that  earnings per diluted share will be in a range of $.32
to $.36 for the quarter,  excluding the effects of an interest accrual we expect
to make in  connection  with the  reversal of a  tax-planning  strategy  and the
results of an actuarial study presently being conducted on our claims  accruals.
Our current estimate  compares with $.28 per diluted share for the third quarter
last year and our guidance  given in July that  indicated  an expected  range of
$.36 to $.40 for the third quarter of this year.

The business  environment  is good. We experienced a soft spot in August that we
did not expect and disruption in freight patterns in the Southeast during August
and September due to the hurricanes that affected our equipment utilization, but
in general  July and  September  were quite good and  October  has  started  out
strong.  For the  quarter,  we expect  revenue  per total mile,  excluding  fuel
surcharge,  to improve more than 10% compared with the same period last year. We
expect  revenue per  tractor  per week,  excluding  fuel  surcharge,  to improve
approximately  2%,  to  approximately  $3,025  for the  quarter.  Excluding  the
possible  effects of the actuarial  study  mentioned  above, we are expecting an
operating ratio of  approximately  92.7% for the quarter compared with 94.0% for
the same quarter last year.

In addition to the effects on utilization  mentioned above,  rapidly  escalating
fuel  costs  were the  other  main  factor  that  influenced  the  change in our
expectations.  The national average diesel fuel price, as reported weekly by the
United States Department of Energy,  increased approximately 30 cents per gallon
between  July  and  September.  Our  fuel  surcharge  program  historically  has
recovered  approximately  70% of the effect of increases in fuel prices over the
baseline  prices in our  contracts.  As prices  have  risen,  the  effect of the
unrecovered  portion has grown.  Even with fuel  surcharge  revenue  expected to
exceed $.10 per mile for the quarter,  our net fuel cost,  after  collection  of
fuel surcharges, is up 2.5 cents

per company  mile versus the third  quarter of last year.  For the  quarter,  we
estimate that the impact of higher fuel prices,  after collection of surcharges,
is  approximately  $.10 per diluted  share  compared with the third quarter last
year and approximately  $.04 per diluted share greater than we expected based on
fuel prices when we issued our guidance in July.

The tax  item  relates  to our  reversal  of a tax  planning  strategy  that was
disallowed by the IRS. The strategy accelerated certain deductions. Accordingly,
when it was reversed,  certain  deductions were recognized later than originally
recorded, so we will incur interest, but not any penalties,  on the reversal. We
expect the interest charge to be approximately  $400,000 pre-tax, and are in the
process of finalizing that amount.

During the quarter we engaged an actuarial firm to analyze our claims  accruals.
Our self insured  retention amounts have increased  significantly  over the past
three years,  and we believed it was appropriate to engage an outside  actuarial
firm to review the reserves and methodologies that we employ each quarter in our
own analysis. While we believe our claims accrual methods have been prudent, the
outside firm's analysis is not yet complete, and we cannot predict whether their
analysis will indicate a need for changes in our accruals.

All-in-all,  although we never like to lower  guidance,  we feel very good about
the  progress  we are  making  in our  business  and the  current  supply-demand
relationship in the freight market."

Covenant Transport,  Inc. is a public truckload carrier that offers just-in-time
service and other premium  transportation  services for customers throughout the
United States. Covenant operates one of the ten largest fleets in North America.
The Company's Class A common stock is traded on the NASDAQ National Market under
symbol, "CVTI."

This press  release  contains  forward-looking  statements  that  involve  risk,
assumptions,  and uncertainties  that are difficult to predict.  Statements that
constitute  forward-looking  statements are usually  identified by words such as
"anticipates,"   "believes,"   "estimates,"   "projects,"   "expects,"  "plans,"
"intends," 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 our
management  and are  subject  to  significant  risks and  uncertainties.  Actual
results may differ from those set forth in the forward-looking  statements.  The
following factors, among others, could cause actual results to differ materially
from those in forward-looking statements:  excess tractor or 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  the  Company,   customers,   ports,  or  other  shipping  related
facilities;   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;  increases  in the prices paid for new revenue
equipment  and changes in the resale value of our used  equipment;  increases in
compensation  for and difficulty in attracting and retaining  qualified  drivers
and independent  contractors;  elevated experience in the frequency and severity
of claims relating to accident, cargo, workers' compensation,  health, and other
claims;  high insurance  premiums;  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;
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;  the ability to successfully execute
the Company's initiative of improving the profitability of medium length of haul
movements;  and the  ability  to  identify  acceptable  acquisition  candidates,
consummate  acquisitions,  and integrate  acquired  operations.  Readers  should
review and consider  these  factors  along with the various  disclosures  by the
Company  in its  press  releases,  stockholder  reports,  and  filings  with the
Securities Exchange Commission.

For further information contact:
Joey B. Hogan, Executive VP and Chief Financial Officer
(423) 825-3336
hogjoe@covenanttransport.com