Allied Holdings Files Form 10-Q for the Quarter Ended June 30, 2004

DECATUR, Ga., Oct. 21, 2004 -- Allied Holdings, Inc. (AMEX:AHI) announced today that it has completed and filed with the Securities and Exchange Commission its quarterly report on Form 10-Q for the quarter ended June 30, 2004. As previously reported by the Company, the Company was notified by The American Stock Exchange ("Amex") that the Company was not in compliance with Section 1003(d) of the Amex Company Guide as a result of the Company's failure to timely file this report. As a result of completing and filing the Form 10-Q for the quarter ended June 30, 2004, the Company believes that it is now in compliance with Section 1003(d) of the Amex Company Guide.

The Company delayed filing its quarterly report for the second quarter in order to complete its evaluation and analysis of the Company's accounting for certain items in its consolidated financial statements relating to the Company's financing and funding of its insurance arrangements. As discussed in the Company's quarterly report on Form 10-Q for the quarter ended June 30, 2004, the Company determined that borrowings and repayments in connection with its insurance financing arrangements during the periods ended June 30, 2004 and 2003 should be reclassified in the Company's cash flows from operating activities to financing activities. Further, the Company determined that funds deposited with and returned from the Company's insurance carriers related to its insurance arrangements during the periods ended June 30, 2004 and 2003 should be disclosed in the Company's cash flows as investing activities rather than operating activities.

There is no effect on stockholders' equity of the Company as a result of this change in classification. Further, these changes do not result in any change to the Company's net income over previously reported periods.

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 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 its compliance with provisions of The American Stock Exchange Company Guide, are subject to certain risks and uncertainties that could cause actual results to differ materially. Without limitation, these risks and uncertainties include, a determination of the staff of the Amex regarding the Company's compliance, 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 our website at www.alliedholdings.com .