Net income for the thirteen-week period ended April 1, 2006 was $24.4 million, or $0.41 per diluted share, on revenue of $610 million. Included in the 2006 first quarter was $35.4 million of revenue related to disaster relief efforts for the various hurricanes that impacted the United States during the second half of 2005. These transportation services were provided primarily under the FAA contract. The revenue recognized under this contract during the 2006 first quarter generated $5.0 million of operating income which, net of related income taxes, increased net income by $3.1 million, or $0.05 per diluted share. Operating margin in the 2006 first quarter was 6.8 percent. The revenue generated under the FAA contract increased operating margin by 45 basis points in the 2006 period.

Landstar's carrier group of companies generated $424 million of revenue in the thirteen-week period ended March 31, 2007, compared with revenue of $428 million in the thirteen-week period ended April 1, 2006. In the 2007 and 2006 first quarters, the carrier group invoiced customers $33.7 million and $33.8 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 $144 million of revenue, which included the $3.4 million related to transportation services provided primarily under the FAA contract, in the 2007 thirteen-week period compared with $173 million of revenue, which included $35.4 million related to transportation services provided primarily under the FAA contract, in the 2006 thirteen-week period.

Landstar System, Inc. announced that its Board of Directors 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. During the 2007 first quarter, Landstar purchased 555,952 shares of its common stock at a total cost of $23,585,000. The Company may purchase an additional 271,549 shares of its common stock under its previously authorized share purchase program.

Landstar System, Inc. also announced that its Board of Directors has declared a quarterly dividend of $0.03 per share. The dividend is payable on May 31, 2007 to stockholders of record at the close of business on May 10, 2007. It is the intention of the Board of Directors to continue to pay a quarterly dividend on a go forward basis.

Commenting on Landstar's 2007 first quarter performance, Landstar President and CEO Henry Gerkens said, "Excluding the estimated impact of the severe accident in the 2007 first quarter, Landstar delivered earnings per diluted share of $0.43, which was at the upper end of our original estimated range of earnings. As anticipated, revenue for the quarter was slightly lower than the prior year quarter due to the lower revenue derived under the FAA contract and the continuation of softer demand in the domestic freight transportation industry. Once again however, our non-asset based variable cost business model achieved high financial returns as it adapted to the slower 2007 first quarter economy."

"Trailing twelve month return on average shareholders' equity remained high at 44 percent and return on invested capital, net income divided by the sum of average equity plus average debt, was 31 percent. During the quarter Landstar purchased $23,585,000 of its common stock, reduced debt by $31.3 million and ended the 2007 first quarter with cash and short term investments of $98.5 million."

Gerkens continued, "During the first month and a half of the 2007 first quarter, there was downward pressure on price caused by lower volumes and more available capacity. However, as we moved into the second half of the quarter pricing began to stabilize and volume levels improved. In fact, as it relates to pricing, revenue per load in March of 2007 was higher than in March 2006. This is an encouraging trend as we move into the 2007 second quarter. I anticipate the 2007 second quarter to be another challenging quarter due to uncertain economic conditions. In addition, the 2006 second quarter results included $20.8 million of revenue generated under the FAA contract. We are not forecasting any such revenue in the 2007 second quarter even though the contract has been extended through June 30, 2007 and the FAA has the option to extend the contract for the balance of the year. Given the comments above, I anticipate revenue growth for the second quarter of 2007 to be in a mid single digit range over the revenue generated in the second quarter of 2006, and I anticipate Landstar's earnings per diluted share to be within a range of $0.49 to $0.54 for the 2007 second quarter."

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 Investors and then the webcast icon.

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)

                                                   Thirteen Weeks Ended
                                                 March 31,          April 1,
                                                   2007              2006

    Revenue                                       $576,649          $610,042
    Investment income                                1,740               379

    Costs and expenses:
      Purchased transportation                     434,058           458,250
      Commissions to agents                         46,632            47,011
      Other operating costs                          5,506            12,068
      Insurance and claims                          17,540            11,552
      Selling, general and administrative           33,165            35,836
      Depreciation and amortization                  4,617             4,093

         Total costs and expenses                  541,518           568,810

    Operating income                                36,871            41,611
    Interest and debt expense                        1,592             1,850

    Income before income taxes                      35,279            39,761
    Income taxes                                    13,675            15,411

    Net income                                     $21,604           $24,350


    Earnings per common share                        $0.39             $0.41

    Diluted earnings per share                       $0.38             $0.41

    Average number of shares outstanding:
      Earnings per common share                 55,926,000        58,901,000
      Diluted earnings per share                56,470,000        59,919,000

    Dividends paid per common share                 $0.030            $0.025



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


                                                     Thirteen Weeks Ended
                                                  March 31,          April 1,
                                                     2007              2006

     External Revenue

     Carrier segment                              $423,574          $428,313
     Global Logistics segment                      143,865           173,425
     Insurance segment                               9,210             8,304

        External revenue                          $576,649          $610,042



     Operating Income

     Carrier segment                               $41,409           $40,571
     Global Logistics segment                        4,688             8,727
     Insurance segment                               3,359             6,676
     Other                                         (12,585)          (14,363)

        Operating income                           $36,871           $41,611



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


                                                  March 31,           Dec 30,
                                                      2007              2006
    ASSETS
    Current assets:
      Cash and cash equivalents                    $77,780            $91,491
      Short-term investments                        20,701             21,548
      Trade accounts receivable, less allowance
       of $4,589 and $4,834                        300,255            318,983
      Other receivables, including advances to
       independent contractors, less allowance of
       $3,987 and $4,512                            22,053             14,198
      Deferred income taxes and other
       current assets                               17,154             25,142
        Total current assets                       437,943            471,362

    Operating property, less accumulated
     depreciation and amortization of
     $78,307 and $77,938                           115,501            110,957
    Goodwill                                        31,134             31,134
    Other assets                                    36,006             33,198
    Total assets                                  $620,584           $646,651

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities:
     Cash overdraft                                $25,160            $25,435
     Accounts payable                              120,404            122,313
     Current maturities of long-term debt           19,578             18,730
     Insurance claims                               27,386             25,238
     Other current liabilities                      55,138             58,478
        Total current liabilities                  247,666            250,194

    Long-term debt, excluding current
     maturities                                     78,415            110,591
    Insurance claims                                43,127             36,232
    Deferred income taxes                           20,424             19,360

    Shareholders' equity:
      Common stock, $.01 par value,
       authorized 160,000,000
       shares, issued 65,127,496 and
       64,993,143 shares                               651                650
      Additional paid-in capital                   112,345            108,020
      Retained earnings                            519,195            499,273
      Cost of 9,583,961 and 9,028,009
       shares of common stock in treasury         (401,247)          (377,662)
      Accumulated other comprehensive
       income (loss)                                     8                 (7)
        Total shareholders' equity                 230,952            230,274
    Total liabilities and shareholders'
     equity                                       $620,584           $646,651



                                Landstar System, Inc.
                              Supplemental Information
                                     (Unaudited)

                                                     Thirteen Weeks Ended
                                                  March 31,          April 1,
                                                     2007              2006
    Carrier Segment
        External revenue generated
         through (in thousands):
             Business Capacity Owners (1)         $299,398          $303,793
             Other third party truck
              capacity providers                   124,176           124,520
                                                  $423,574          $428,313

        Revenue per revenue mile                     $1.98             $1.99
        Revenue per load                            $1,569            $1,580
        Average length of haul (miles)                 792               793
        Number of loads                            270,000           271,000

    Global Logistics Segment
        External revenue generated
         through (in thousands):
             Business Capacity Owners (1) (2)      $26,841           $24,832
             Other third party truck
              capacity providers                    79,953           100,627
             Rail, Air, Ocean and Bus Carriers (3)  37,071            47,966
                                                  $143,865          $173,425

        Revenue per load (4)                        $1,560            $1,500
        Number of loads (4)                         90,000            92,000

                                                     As of             As of
                                                   March 31,          April 1,
                                                      2007              2006
    Capacity
        Business Capacity Owners (1) (5)             8,510             8,219
        Other third party truck capacity providers:
             Approved and active (6)                14,784            13,698
             Approved                                8,758             8,381
                                                    23,542            22,079
        Total available truck capacity
         providers                                  32,052            30,298
        Agent Locations                              1,338             1,196

    (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 thirteen week period was $481,000 and
    $10,856,000, respectively, 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 emergency transportation
    services provided under the FAA contract.

    (5) Trucks provided by business capacity owners were 9,158 and  8,932,
    respectively.

    (6) 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.

CONTACT:
Jim Gattoni of Landstar System, Inc.,
+1-904-398-9400

http://www.landstar.com/