Exhibit 99.1
For: Frozen Food Express Industries, Inc.
Listed: Nasdaq: (FFEX)
Company Contacts:
Stoney M. (Mit) Stubbs, Jr. (CEO)
F. Dixon McElwee, Jr. (CFO)
(214) 630-8090
For Immediate Release
FROZEN FOOD EXPRESS INDUSTRIES, INC.
ADOPTS STOCKHOLDER RIGHTS PLAN
Dallas, Texas, June 15, 2000-Frozen Food Express Industries, Inc.
(Nasdaq: FFEX), today announced the Board of Directors approved a Rights
Agreement which provides for a distribution of a dividend of one Common
Stock purchase right for each outstanding share of its Common Stock.
The non-taxable distribution will be made on July 6, 2000, payable to
stockholders of record on June 26, 2000. The Rights become exercisable
upon the occurrence of certain events generally relating to a change of
control of FFEX. Rights initially have an exercise price of $11. Upon the
occurrence of such events, the Rights will be exercisable for a number of
shares having a market value equal to two times the exercise price of the
Rights. The Company may redeem the Rights for $.001 each.
The Rights will expire on June 13, 2010, but the Rights Agreement is
subject to review every three years by an independent committee of the
Board of Directors, which may recommend its modification or termination.
Until the Rights become exercisable upon certain triggering events, the
Rights trade with the Company's Common Stock as a unit.
"This Plan is similar to those adopted by many other companies," said
Stoney M. Stubbs, Jr., President and Chief Executive Officer of Frozen Food
Express Industries, Inc. "The Rights are designed to ensure that all
stockholders receive fair and equal treatment in the event of any proposed
takeover of the Company and to guard against partial tender offers, open
market accumulations and other tactics to gain control of the Company which
could provide inadequate value to stockholders. We are not aware of any
efforts to acquire FFEX. This Plan is only a precaution taken to protect
our stockholders."
The Rights are governed by a Rights Agreement to be included in Form 8-
A Registration Statement that will be filed shortly with the SEC. The
Rights Agreement contains a complete description of the attributes of the
Rights.
Frozen Food Express Industries, Inc. is the largest publicly-held
temperature-controlled carrier of perishable goods (primarily processed
foods and meats) on the North American continent. Its services extend from
Canada, throughout the 48 contiguous United States, into Mexico. The
refrigerated trucking company is the only one serving this market that is
full-service-providing full-truckload, less-than-truckload and distribution
transportation of refrigerated and frozen products. Its refrigerated less-
than-truckload operation is also the largest on the North American
continent.
Statements contained in this news release which are not historical
facts are forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
are subject to risks and uncertainties (contained in the company's SEC
filings) which could cause actual results to differ.
