According to the Order and Judgment from the Tenth Circuit Court of Appeals, dated April 26, 2004, the judgment of the district court is affirmed and the matter dismissed.

As reported by the Company’s FORM 10-Q for the quarterly period ended March 31, 2002, the Company and certain of its former officers and directors have been named as defendants in a securities class action filed in the United States District Court for the District of Utah, Caprin v. Simon Transportation Services, Inc., et al., No. 2:98CV 863K (filed December 3, 1998). Plaintiffs in this action allege that defendants made material misrepresentations and omissions during the period February 13, 1997 through April 2, 1998 in violation of Sections 11, 12(2) and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On September 27, 2000, the District Court dismissed the case with prejudice. Plaintiffs have appealed the dismissal of this action to the United States Court of Appeal for the Tenth Circuit, which heard oral arguments on the matter on January 15, 2002. No decision has been announced by the Court of Appeals.

The original Complaint charges Simon, its President, Chairman and CEO, its CFO and Director and VP, with violations of the federal securities laws. Specifically, the Complaint alleges that Simon and its officers violated the federal securities laws by concealing facts relating to serious operational problems in the Company so that the individual defendants could sell millions of dollars of personal holdings in Simon before the negative information hit the market. The price of Simon's stock was artificially inflated during the Class Period as a result of the foregoing misconduct, and after the disclosure on April 2, 1998 of the severe operational problems, the stock immediately fell to $9 1/8, a decline of 63% from the Company's class period high of $24 3/4.