Allied Holdings Engages Bear Stearns to Explore Sale Of Its Axis Group

    DECATUR, Ga., Aug. 7 Allied Holdings, Inc.
announced today that it has engaged Bear, Stearns & Co. to explore the
potential divestiture of its Axis Group subsidiary.
    "An important element of our plan to revitalize Allied is to de-leverage
the Company; and we would expect to use a substantial portion of any sales
proceeds to reduce our indebtedness.  Axis is a solid logistics company and an
important ancillary asset.  A decision regarding Axis will be made only after
a thoughtful analysis of the potential economic and strategic impact," said
Hugh E. Sawyer, President and Chief Executive Officer.  "We have received
Board approval to explore various opportunities to de-leverage our company.
As we consider alternatives, Allied will not compromise our long-standing
commitment to our core carhauling business."
    Axis began operations in 1996 and has grown to become one of the largest
non-asset based service providers to the finished vehicle logistics services
market in the United States primarily through the use of non-union labor as
well as an international operator in six countries on four continents.  Axis
operates a portfolio of businesses that provide services to the new and pre-
owned vehicle market, vehicle processing services and transportation at ports
and inland distribution centers, and equipment for containerized international
shipment of vehicles.
    Axis' services include the procurement of efficient and cost effective
vehicle shipping services, vehicle inspections, the removal/installation of
exterior protective coatings, mechanical adjustments and repairs, vehicle
washing and transportation logistics.  In addition, Axis also provides port
processing operations for international OEMs which encompass services such as
vehicle badging and air conditioner and wind deflector installation.  Through
joint venture relationships in the United Kingdom and Brazil, Axis provides
traditional vehicle hauling services from ports/plants to automotive dealers
in addition to logistics services.
    Revenues for Axis totaled $28.5 million for the most recent year
completed, 2000.  However, Axis' reported revenues are net of transportation
costs which were approximately $20 million in 2000.  In addition, net reported
revenues for Axis do not include the revenues from its joint ventures.
Revenues from its UK and Brazilian joint ventures currently exceed
$200 million annually.  The Axis share of those businesses equates to roughly
$75 million in revenues.  In 2000, Axis reported earnings before interest,
taxes, depreciation and amortization, including the earnings of joint
ventures, of $11 million.
    "We intend to execute the key initiatives of our turnaround plan.  Our
aspiration is to build a company of choice for customers, our investors and
gold standard people," said Mr. Sawyer.