JACKSONVILLE, Fla., July 28 /PRNewswire-FirstCall/ -- Landstar System, Inc. (Nasdaq: LSTR), a safety-first non-asset based provider of transportation capacity, announced today that its Board of Directors has declared a quarterly dividend of $0.025 per share and authorized the purchase of up to an additional 2,000,000 shares of its common stock from time to time in the open market and in privately negotiated transactions.

"This is the first cash dividend in Landstar's history as a publicly traded company," said Landstar President and CEO Henry Gerkens. "This dividend along with the increase to our share purchase program reflect the Board of Directors' belief in Landstar's continued financial strength and commitment to building long-term stockholder value."

The dividend is payable on August 31, 2005, to stockholders of record at the close of business on August 17, 2005 and would pay out approximately $5,854,000 per year, if continued quarterly. It is the intention of the Board of Directors to pay a comparable quarterly dividend going forward.

The new share purchase program authorization comes as Landstar has purchased 204,773 shares of its common stock during the month of July under its currently authorized program. The Company may purchase an additional 772,127 shares of its common stock under its previously authorized share purchase program. As of July 27, 2005, Landstar has 58,541,443 shares of common stock outstanding. Since January 1997, the Company has purchased 52,660,000 shares of its common stock, adjusted to reflect all previous stock splits, at an aggregate cost of approximately $423,587,000.

"Our ability to declare a dividend and expand our share purchase program directly result from the success of the Landstar business model in generating free cash flow from operations," continued Gerkens. "We are pleased that Landstar can return some of its excess cash flow to its stockholders while also making Landstar more attractive to a broader range of investors who share our confidence in the Company's future."

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 and expectations. Terms such as "anticipates," "believes," "estimates," "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 accident claims; dependence on independent sales agents; dependence on third party capacity providers; disruptions or failures in our computer systems; a downturn in domestic 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 2004 fiscal year, described in the section Factors That May Affect Future Results and/or Forward-Looking Statements, 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.

Landstar System, Inc. delivers safe, specialized transportation services to a broad range of customers throughout North America. 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 multimodal group, which is comprised of Landstar Express America, Inc. and Landstar Logistics, Inc., provides expedited, contract logistics and intermodal transportation 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.

SOURCE Landstar System, Inc.

/CONTACT: Bob LaRose of Landstar System, Inc., +1-904-398-9400/ /Web site: http://www.landstar.com / (LSTR)