Landstar's carrier group of companies generated $461 million of revenue in both the 2007 and 2006 thirteen-week periods. In the 2007 and 2006 thirteen- week periods, the carrier group invoiced customers $44.1 million and $48.9 million, respectively, in fuel surcharges that were passed on 100 percent to business capacity owners and excluded from revenue. Landstar's global logistics group of companies generated $165 million of revenue in the 2007 thirteen-week period, which included $2.8 million related to transportation services provided under the FAA contract, compared with $180 million of revenue, which included $29.7 million related to transportation services provided under the FAA contract, in the 2006 thirteen-week period.

Net income for the thirty-nine-week period ended September 29, 2007 was $80.6 million, or $1.45 per diluted share, compared to net income of $84.4 million, or $1.43 per diluted share, in the 2006 thirty-nine-week period. Net income included $1.0 million, or $0.02 per diluted share in the 2007 thirty- nine-week period compared to $7.5 million, or $0.13 per diluted share in the 2006 thirty-nine-week period, from revenue of $6.2 million and $86.0 million in the 2007 and 2006 thirty-nine-week periods, respectively, for services provided under the FAA contract. Operating income in the 2007 thirty-nine-week period included $1.6 million of income related to FAA revenue compared to $12.2 million in the 2006 thirty-nine-week period. Excluding the revenue and operating income related to the services provided under the FAA contract, operating margin was 7.3 percent in the 2007 thirty-nine-week period compared to 7.2 percent in the 2006 thirty-nine-week period. Overall, consolidated revenue, including FAA revenue, for the thirty-nine-week period of 2007 was $1.844 billion compared to $1.902 billion for the 2006 thirty-nine-week period.

Landstar's carrier group of companies generated $1.355 billion of revenue in the thirty-nine-week period ended September 29, 2007, compared with $1.357 billion in the thirty-nine-week period ended September 30, 2006. In the 2007 and 2006 thirty-nine-week periods, the carrier group invoiced customers $121.5 million and $129.4 million, respectively, in fuel surcharges that were passed on 100 percent to business capacity owners and excluded from revenue. Landstar's global logistics group of companies generated $462 million of revenue, which included $6.2 million related to transportation services under the FAA contract, in the 2007 thirty-nine-week period compared with $520 million of revenue, which included $86.0 million related to the transportation services provided under the FAA contract, in the 2006 thirty-nine-week period.

Landstar System, Inc. announced that its Board of Directors has declared a quarterly dividend of $0.0375 per share. The dividend is payable on November 30, 2007 to stockholders of record at the close of business on November 12, 2007. It is the intention of the Board of Directors to continue to pay a quarterly dividend.

Commenting on Landstar's 2007 third quarter performance, Landstar's President and CEO Henry Gerkens said, "Despite a continued unpredictable and sluggish freight environment, Landstar delivered another solid quarterly performance. Excluding the FAA revenue and related net income from both the 2007 and 2006 third quarters, Landstar's revenue increased 2 percent quarter over quarter, diluted earnings per share increased 10 percent quarter over quarter and operating margin increased by 14 basis points quarter over quarter."

"Landstar continues to generate outstanding returns. Trailing twelve month return on average shareholders' equity remained high at 48 percent and return on invested capital, net income divided by the sum of average equity plus average debt, was 32 percent. During the 2007 third quarter, Landstar purchased 1,320,786 shares of its common stock at a total cost of $58,394,000 bringing the total number of common shares purchased during the thirty-nine weeks ended September 29, 2007 to 2,827,501 at a total cost of $126,148,000. The Company may purchase an additional 2,000,000 shares of its common stock under its authorized share purchase program."

Gerkens continued, "The fourth quarter of 2006 included $15 million in revenue generated under the FAA contract. We estimate in the 2007 fourth quarter approximately $2 million of such revenue. Based upon current business levels, no change in the current freight environment, and excluding FAA revenue from both the 2007 and 2006 fourth quarter, I anticipate revenue to increase in the low to mid single digit range quarter over quarter. Diluted earnings per share in the 2006 fourth quarter was $0.50, which included $0.03 per diluted share from the revenue recognized under the FAA contract. Based upon our current revenue forecast, I anticipate diluted earnings per share for the fourth quarter of 2007 to be within a range of $0.47 to $0.52 per diluted share."

Landstar will provide a live webcast of its quarterly earnings conference call this afternoon at 2 pm ET. To access the webcast, visit the Company's website at www.landstar.com; click on "Investor Relations" and "Webcasts", then click on "Landstar's Third Quarter 2007 Earnings Release Conference Call."

The following is a "safe harbor" statement under the Private Securities Litigation Reform Act of 1995. Statements contained in this press release that are not based on historical facts are "forward-looking statements". This press release contains forward-looking statements, such as statements which relate to Landstar's business objectives, plans, strategies, expectations and intentions. Terms such as "anticipates," "believes," "estimates," "intention," "plans," "predicts," "may," "should," "will," the negative thereof and similar expressions are intended to identify forward-looking statements. Such statements are by nature subject to uncertainties and risks, including but not limited to: an increase in the frequency or severity of accidents or workers' compensation claims; unfavorable development of existing claims; dependence on independent sales agents; dependence on third party capacity providers; disruptions or failures in our computer systems; a downturn in domestic or international economic growth or growth in the transportation sector; substantial industry competition; and other operational, financial or legal risks or uncertainties detailed in Landstar's Form 10K for the 2006 fiscal year, described in Item 1A Risk Factors, and other SEC filings from time to time. These risks and uncertainties could cause actual results or events to differ materially from historical results or those anticipated. Investors should not place undue reliance on such forward- looking statements, and Landstar undertakes no obligation to publicly update or revise any forward-looking statements.

About Landstar:

Landstar System, Inc. delivers safe, specialized transportation services to a broad range of customers worldwide. The Company identifies and fulfills shippers' needs through the coordination of individual businesses comprised of independent sales agents and third-party transportation capacity providers. Landstar's carrier group, which is comprised of Landstar Gemini, Inc., Landstar Inway, Inc., Landstar Ligon, Inc., Landstar Ranger, Inc. and Landstar Carrier Services, Inc., delivers excellence in complete over-the-road transportation services. Landstar's global logistics group, which is comprised of Landstar Global Logistics, Inc. and its subsidiary Landstar Express America, Inc., provides international and domestic multimodal (over-the-road, air, ocean and rail) transportation, expedited, contract logistics and warehousing services. All Landstar operating companies are certified to ISO 9001:2000 quality management system standards. Landstar System, Inc. is headquartered in Jacksonville, Florida. Its common stock trades on The NASDAQ Stock Market(R) under the symbol LSTR.

                            Landstar System, Inc.
                        Consolidated Statements of Income
                 (Dollars in thousands, except per share amounts)
                                   (Unaudited)

                              Thirty Nine Weeks Ended   Thirteen Weeks Ended
                                Sept 29,    Sept 30,    Sept 29,    Sept 30,
                                  2007        2006        2007        2006

    Revenue                    $1,844,412  $1,902,477    $634,811    $649,197
    Investment income               4,103       2,589       1,106       1,337

    Costs and expenses:
      Purchased transportation  1,394,781   1,430,411     481,946     486,102
      Commissions to agents       148,574     149,694      51,170      52,173
      Other operating costs        21,208      37,125       7,986      14,837
      Insurance and claims         38,878      30,230       9,319       9,656
      Selling, general and
       administrative              95,002     102,809      31,082      31,885
      Depreciation and
       amortization                14,045      12,230       4,766       4,180

         Total costs and
          expenses              1,712,488   1,762,499     586,269     598,833

    Operating income              136,027     142,567      49,648      51,701
    Interest and debt expense       4,464       4,950       1,764       1,808

    Income before income taxes    131,563     137,617      47,884      49,893
    Income taxes                   50,941      53,222      18,536      19,313

    Net income                    $80,622     $84,395     $29,348     $30,580


    Earnings per common share       $1.46       $1.45       $0.54       $0.53

    Diluted earnings per share      $1.45       $1.43       $0.54       $0.53

    Average number of shares
     outstanding:
      Earnings per common
       share                   55,221,000  58,229,000  54,189,000  57,287,000
      Diluted earnings per
       share                   55,740,000  59,155,000  54,608,000  57,948,000

    Dividends paid per common
     share                        $0.0975     $0.0800     $0.0375     $0.0300



                              Landstar System, Inc.
                           Selected Segment Information
                              (Dollars in thousands)
                                   (Unaudited)

                                 Thirty Nine Weeks Ended  Thirteen Weeks Ended
                                   Sept 29,    Sept 30,    Sept 29,  Sept 30,
                                     2007        2006        2007      2006

     External Revenue

     Carrier segment              $1,354,855  $1,356,780   $460,894  $460,847
     Global Logistics segment        461,896     520,080    164,687   179,613
     Insurance segment                27,661      25,617      9,230     8,737

        External revenue          $1,844,412  $1,902,477   $634,811  $649,197


     Operating Income

     Carrier segment                $135,542    $137,398    $45,664   $49,334
     Global Logistics segment         12,874      25,353      4,858     8,331
     Insurance segment                25,586      24,056     11,577     8,967
     Other                           (37,975)    (44,240)   (12,451)  (14,931)

        Operating income            $136,027    $142,567    $49,648   $51,701



                              Landstar System, Inc.
                           Consolidated Balance Sheets
                 (Dollars in thousands, except per share amounts)
                                   (Unaudited)

                                                   Sept 29,           Dec 30,
                                                     2007              2006
    ASSETS
    Current assets:
      Cash and cash equivalents                    $59,047            $91,491
      Short-term investments                        20,948             21,548
      Trade accounts receivable, less allowance
        of $5,326 and $4,834                       310,110            318,983
      Other receivables, including advances
       to independent contractors, less allowance
       of $4,744 and $4,512                         11,398             14,198
      Deferred income taxes and other
       current assets                               34,984             25,142
        Total current assets                       436,487            471,362

    Operating property, less accumulated
     depreciation
        and amortization of $83,696 and $77,938    128,203            110,957
    Goodwill                                        31,134             31,134
    Other assets                                    36,355             33,198
    Total assets                                  $632,179           $646,651

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities:
      Cash overdraft                               $32,201            $25,435
      Accounts payable                             125,068            122,313
      Current maturities of long-term debt          21,848             18,730
      Insurance claims                              26,099             25,238
      Other current liabilities                     57,096             58,478
        Total current liabilities                  262,312            250,194

    Long-term debt, excluding current maturities   106,187            110,591
    Insurance claims                                40,042             36,232
    Deferred income taxes                           22,178             19,360

    Shareholders' equity:
      Common stock, $.01 par value, authorized
       160,000,000 shares, issued 65,613,866
       and 64,993,143 shares                           656                650
      Additional paid-in capital                   130,116            108,020
      Retained earnings                            574,505            499,273
      Cost of 11,855,510 and 9,028,009
       shares of common stock in treasury         (503,810)          (377,662)
      Accumulated other comprehensive loss              (7)                (7)
        Total shareholders' equity                 201,460            230,274
    Total liabilities and shareholders' equity    $632,179           $646,651



                                Landstar System, Inc.
                              Supplemental Information
                                     (Unaudited)

                                 Thirty Nine Weeks Ended  Thirteen Weeks Ended
                                    Sept 29,    Sept 30,   Sept 29,  Sept 30,
                                      2007        2006       2007      2006
    Carrier Segment
       External revenue generated
        through (in thousands):
         Business Capacity
          Owners (1)                 $970,432    $964,260  $330,776  $323,664
         Other third party truck
          capacity providers          384,423     392,520   130,118   137,183
                                   $1,354,855  $1,356,780  $460,894  $460,847

       Revenue per revenue mile         $2.02       $2.02     $2.06     $2.05
       Revenue per load                $1,608      $1,613    $1,645    $1,651
       Average length of haul (miles)     795         800       798       806
       Number of loads                842,500     841,200   280,200   279,200

    Global Logistics Segment
       External revenue generated
        through (in thousands):
         Business Capacity
          Owners (1) (2)              $76,175     $78,308   $23,990   $31,145
         Other third party truck
          capacity providers          261,344     302,746    95,449   104,445
         Rail, Air, Ocean and
          Bus Carriers (3)            124,377     139,026    45,248    44,023
                                     $461,896    $520,080  $164,687  $179,613

       Revenue per load (4) (5)        $1,514      $1,510    $1,530    $1,520
       Number of loads (4) (5)        301,000     287,400   105,800    98,600

                                        As of       As of
                                       Sept 29,    Sept 30,
                                         2007        2006
    Capacity
       Business Capacity Owners (1)(6)   8,452       8,463
       Other third party truck
        capacity providers:
            Approved and active (7)     15,765      14,604
            Approved                     9,224       8,009
                                        24,989      22,613
       Total available truck
        capacity providers              33,441      31,076

    Agent Locations                      1,414       1,291

    (1) Business Capacity Owners are independent contractors who provide truck
    capacity to the Company under exclusive lease arrangements.

    (2) Includes revenue generated through Carrier Segment Business Capacity
    Owners.

    (3) Included in the 2007 and 2006 thirty nine week periods was $481,000
    and $23,032,000, respectively, of revenue attributable to buses provided
    under the FAA contract. Included in the 2006 thirteen week period was
    $3,594,000 of revenue attributable to buses provided under the FAA
    contract.

    (4) Number of loads and revenue per load exclude the effect of revenue
    derived from transportation services provided under the FAA contract.

    (5) The number of loads in the thirty nine and thirteen week periods ended
    2006 were restated.  This change had no impact on reported revenue in
    either period.

    (6) Trucks provided by business capacity owners were 9,056 and 9,164,
    respectively.

    (7) Active refers to other third party truck capacity providers who have
    moved at least one load in the past 180 days.

SOURCE Landstar System, Inc.

http://www.landstar.com/