Allied Holdings Announces U.S. Teamsters Ratify Labor Contract

DECATUR, Ga., July 15 -- Allied Holdings, Inc. (AMEX:AHI) today announced that employees of its subsidiary, Allied Systems, represented by the Teamsters Union in the United States have voted to ratify the new labor agreement that had previously been negotiated between Allied Systems and the National Bargaining Committee for the Teamsters. The new agreement is for a five-year term commencing June 1, 2003, and covers approximately 4,300 drivers, mechanics and yard personnel in the United States. These employees represent approximately 70 percent of Allied Holdings' employees.

Economic provisions of the new agreement include a wage freeze for the first two years of the agreement and wage increases of approximately 2 percent on June 1, 2005, 2 percent on June 1, 2006, and an additional 2.5 percent on June 1, 2007. The agreement provides for increases in company contributions to health, welfare and pension during each year of the agreement.

The economic provisions of the contract will increase the Company's U.S. Teamster labor costs approximately 1.1 percent in year one of the agreement, 1.3 percent in year two, 2.5 percent in year three, 2.5 percent in year four, and 3.0 percent in year five of the agreement.

In addition to the economic provisions, the agreement contains key changes in work-rule provisions that provide increased flexibility in the Company's operations in order to meet evolving client expectations and potentially improve the Company's ability to compete for new business. The remaining carhaul companies operating in the U.S. with employees represented by the Teamsters are signatories to the new agreement and will operate under the same contractual provisions as Allied Systems.

About Allied Holdings

Allied Holdings, Inc. is the parent company of several subsidiaries engaged in providing distribution and transportation services of new and used vehicles to the automotive industry. The services of Allied's subsidiaries span the finished vehicle distribution continuum, and include car-hauling, intramodal transport, inspection, accessorization, and dealer prep. Allied, through its subsidiaries, is the leading 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, including statements regarding improvement of the Company's operating performance; the benefits resulting from the renewal of the contract with the Teamsters in the U.S.; the amount of any increase in the Company's labor costs resulting from the new U.S. Teamsters contract; the benefits to the Company from work-rule changes in the new U.S. Teamsters contract and the Company's ability to meet client expectations and compete for new business as a result of these changes; the Company's ability to maintain a stable operating platform; the ability of the Company to execute key initiatives and; the ability of the Company to increase sales growth in AAG and Axis, 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 of the Company to comply with the terms of its current debt agreements, the ability of the Company to obtain financing in the future and the Company's highly leveraged financial position. 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.

NOTE: For additional information about Allied, please visit the website at www.alliedholdings.com.