Allied Holdings to Implement Administrative Fee

Allied Holdings, Inc. to Implement Administrative Fee

    DECATUR, Ga., Aug. 6 Allied Holdings, Inc.
announced today that it has increased its pricing by charging an
administrative processing fee for all vehicles transported on behalf of its
clients in the United States and Canada.  Allied will begin charging this fee
effective on or about September 6, 2001 as to approximately 85% of its
business and as soon as possible thereafter as to its remaining business as
permitted by its relevant contractual terms.  The administrative processing
fee is approximately an 8.5% price increase.
    "We have completed a careful diagnostic of our rate structure and pricing
for all of our customers and have determined that Allied will charge a new
processing fee for all vehicles transported for each of our clients so that we
are more fully compensated for our services.  Allied performs many underlying
services for its clients which are directly related to our core business of
transporting vehicles and this processing fee is designed to compensate us for
these services.  Our new rate structure will enable Allied to continue to
invest in the people, technology and equipment needed to better serve our
clients and meet their requirements for service and delivery times," said Mr.
Hugh E. Sawyer, President and Chief Executive Officer of Allied Holdings, Inc.
    "We recognize that price increases are difficult to implement in today's
economic environment and this new rate structure could result in a loss of
business.  Nevertheless, we are cautiously optimistic that our clients will
ultimately determine that Allied clearly represents the industry's most
reliable and stable channel of distribution," said Mr. Sawyer.  "However,
given the challenges and risks inherent in this modification in our pricing
strategy, it is difficult at this time to precisely identify the economic
impact of the program," continued Mr. Sawyer.

    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 our website at
http://www.alliedholdings.com .

               
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