CENF Central Freight Lines

Schatz & Nobel, P.C. Announces Class Action Lawsuit Against Central Freight Lines, Inc. NEW YORK, June 29 /PRNewswire/ -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Western District of Texas on behalf of all persons who purchased the publicly traded securities of Central Freight Lines, Inc. (NASDAQ:CENF) ("Central Freight") issued in connection with or traceable to its December 12, 2003 Initial Public Offering ("IPO"). The Complaint alleges that Central Freight, a regional freight carrier, and certain of its officers and directors issued materially false statements in the Prospectus/Registration Statement. On December 12, 2003, Central Freight announced that had completed an IPO of 8.5 million shares of stock pursuant to a Prospectus/Registration Statement. The IPO was priced at $15.00 per share for total net proceeds of $77.9 million after underwriting discounts and commissions. In fact, the Prospectus/Registration Statement was materially false and misleading and failed to disclose, among other things: (i) that the Company's dynamic resource planning process implementation was going disastrously; (ii) that the Company's aggressive expansion projects were negatively affecting the Company's margins; (iii) that the Company's insurance and claims accrual rate was off because the Company failed to have sufficient reverses for accident frequency; and (iv) that the Company was experiencing severe operational issues. As this adverse information was disclosed, the Company's shares eventually plummeted to $8.55 per share. If you are a member of the class, you may, no later than August 24, 2004 request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s). For more information about the case, its claims, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at . To view a copy of the lawsuit initiating the class action, or for more information about class action cases and Schatz & Nobel, please visit our website: http://www.snlaw.net/. DATASOURCE: Schatz & Nobel, P.C. CONTACT: Nancy A. Kulesa of Schatz & Nobel, P.C., 1-800-797-5499, or Web site: http://www.snlaw.net/

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