EGL, Inc. Announces the Sale of Its Automotive Logistics Investment and a New $150 Million Credit Facility

HOUSTON, Sept. 21 -- EGL, Inc. announced today that effective August 26, 2004, TDS Logistics, Inc., of which EGL was a 40% shareholder, was merged with and into TDS/Yucaipa Holding Corp. EGL sold its entire investment in this automotive logistics company for cash. After acquisition fees and other expenses, EGL's share of the merger consideration was approximately $51 million -- $45 million received at closing and approximately $6 million to be held in escrow. The sale resulted in a gain of approximately $5 million to EGL, which will be included in non- operating income in the condensed consolidated statement of operations for the quarter ending September 30, 2004, and excludes the sale proceeds held in escrow. As a result of the sale, EGL was released as guarantor of a letter of credit and terminated a $2 million standby letter of credit for TDS.

In addition, on September 15, 2004, EGL entered into a new credit agreement from a syndicate of banks, led by Bank of America, N.A., establishing a 5-year $150 million, unsecured revolving credit facility under which EGL can borrow for general corporate purposes, including, but not limited to, stock repurchases, as authorized by the Board of Directors, and strategic acquisitions. The new credit facility matures on September 15, 2009 and replaces a previous $100 million secured credit facility, which would have matured on December 20, 2004. As of September 20, 2004, EGL had not drawn on this credit facility.

Houston-based EGL, Inc. operates under the name EGL Eagle Global Logistics. EGL is a leading global transportation, supply chain management and information services company dedicated to providing superior flexibility and fewer shipping restrictions on a price competitive basis. With 2003 revenues exceeding $2.1 billion, EGL's services include air and ocean freight forwarding, customs brokerage, local pick up and delivery service, materials management, warehousing, trade facilitation and procurement, and integrated logistics and supply chain management services. The Company's shares are traded on the NASDAQ National Market under the symbol "EAGL".

CAUTIONARY STATEMENTS

The statements in this press release which are not historical facts are forward looking statements. Such statements involve risks and uncertainties including, but not limited to, general economic conditions, risks associated with operating in international markets, the results of litigation, the timing and effects of any improvements in the regions and industry sectors in which the Company's customers operate, infrastructure improvements, ability to manage and continue growth, competition and other factors detailed in the Company's 2003 Form 10-K, proxy statement and other filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize (or the consequences of such a development worsen), or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. The Company disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.