Allied Holdings, Inc. To Cut Jobs; Allied Announces Restructuring

    DECATUR, Ga., Aug. 1 Allied Holdings, Inc.
announced today it is eliminating approximately 50 jobs -- roughly 15% of its
work force in its corporate office (Corporate Service Center) in Decatur, Ga.
Allied had previously reduced its corporate office staff by approximately 60
jobs during the first half of the year.  In total, Allied has eliminated
roughly 25% of the positions at its corporate office during 2001.  Allied
expects a total annual benefit of approximately $10 million as a result of the
job eliminations at its corporate office.  Allied will take an after-tax
charge of approximately $1 million in the third quarter relating to the
elimination of corporate positions and certain positions in the field related
to the restructuring.
    "This additional reduction of non-core corporate positions at Allied is a
difficult but necessary step in our aggressive plan to revitalize our company.
As we have indicated, Allied will execute the key elements of our turnaround
plan including the elimination of all non-contributory costs.  Fortunately,
Allied has a highly capable corporate team, and we expect no erosion in
customer service as a result of these changes," Hugh E. Sawyer, President and
CEO, said.  "We are also changing our benefits plans for non-bargaining
employees effective September 1, 2001, to include employee contributions to
benefit costs and some modifications in plan design.  These changes to our
benefit plans should save Allied $4 million per year," continued Mr. Sawyer.
    In addition to the job cuts at the home office announced by Allied,
approximately 1,100 drivers, mechanics and yard personnel remain on lay-off
and excess equipment remains idled as Allied continues to rigorously manage
capacity utilization.
    Allied also announced the restructuring of its senior management team,
with Hugh Sawyer now managing twelve direct reports.  Mr. Sawyer said
"Although this is a broad reporting structure for the President and Chief
Executive Officer, it is a technique we will use to expedite the decision-
making process that is vital in a successful turnaround.  I believe that our
new organizational structure will promote cross-functional communication,
encourage and allow for teamwork among senior executives, and improve the
depth of analysis of issues.  The result is that we will have a flatter,
leaner organization which will allow us to eliminate several senior officer
positions."
    Allied announced in connection with the restructuring that Joseph W.
Collier will resign as a member of the Board of Directors and as Executive
Vice President, Planning-Development.  Mr. Collier will remain with Allied as
a Special Advisor to the President and will continue to build upon the
existing relationships established with Allied and its major customers.  "I am
delighted that Joe will continue to serve in an important client relationship
management role," said Mr. Sawyer.
    Mr. Sawyer, concluded, "We expect the aggregate annual impact of our
corporate sizing effort and benefits changes to yield approximately
$14 million in fiscal year 2002.  Although our industry and our company are
faced with challenging economic conditions, Allied remains the best possible
candidate in the industry to ultimately achieve superior economic and service
performance."

    About Allied Holdings
    Allied Holdings, Inc. is the parent company of several subsidiaries
engaged in providing logistics, distribution and transportation services to
the automotive industry.  The services of Allied's subsidiaries span the
entire finished vehicle distribution continuum, and include logistics, car-
hauling, intramodal transport, inspection, accessorization, and dealer prep.
Allied, through its subsidiaries, is the largest company in North America
specializing in the delivery of new and used vehicles.
    Statements in this press release that are not strictly historical are
"forward-looking" statements.  Such statements include, without limitations,
any statements containing the words "believe," "anticipate," "estimate,"
"expect," "intend," "plan," "seek," and similar expressions.  Investors are
cautioned that such statements are subject to certain risks and uncertainties
that could cause actual results to differ materially.  Without limitation,
these risks and uncertainties include economic recessions or extended or more
severe downturns in new vehicle production or sales, the highly competitive
nature of the automotive distribution industry, the ability to comply with the
terms of its debt agreements, the ability of the Company to obtain financing
in the future, the Company's highly leveraged financial position, dependence
on the automotive industry, labor disputes involving the Company or its
significant customers, the dependence on key personnel who have been hired or
retained by the Company, the ability to obtain price increases from customers,
the availability of strategic acquisitions, dispositions, or joint venture
partners, changes in regulatory requirements which are applicable to the
Company's business, risks associated with conducting business in foreign
countries, and changes in vehicle sizes and weights which may impact vehicle
deliveries per load.  Investors are urged to carefully review and consider the
various disclosures made by the Company in this press release and in the
Company's reports filed with the Securities and Exchange Commission.
For additional information about Allied, please visit the website at
http://www.alliedholdings.com .

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