Allied Holdings Sells its Interest in United Kingdom

DECATUR, Ga., Dec. 11 -- Allied Holdings, Inc. announced today that it has completed the sale of its interest in the United Kingdom joint venture established in April 1999 by Allied's Axis subsidiary, to AutoLogic Holdings plc for approximately US$20.5 million in cash. Allied also received a US$5 million distribution from the UK joint venture in October 2001. The $5 million distribution, together with the $20.5 million proceeds from the sale, will be used to reduce outstanding debt.

Commenting on the announcement, Hugh E. Sawyer, President and Chief Executive Officer of Allied Holdings, stated, ``We are pleased that we have successfully executed our exit strategy in the U.K. in a manner that is beneficial to Allied. This transaction supports our initiative to deleverage Allied by reducing our indebtedness.''

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.