Allied Holdings Renews DaimlerChrysler Contract

DECATUR, Ga., Dec. 22, 2005 -- Allied Holdings, Inc. (Pink Sheets: AHIZQ.PK) announced today that its subsidiary, Allied Systems, Ltd., successfully renewed its vehicle delivery agreement with DaimlerChrysler Corporation. The agreement with DaimlerChrysler will extend Allied's current contract through September 30, 2007. Pursuant to the terms of the renewed agreement, Allied will continue performing vehicle delivery services at all of the locations in North America that it currently serves for DaimlerChrysler.

The contract renewal includes increases in the underlying rates paid by DaimlerChrysler to Allied for vehicle delivery services effective October 1, 2005 and again effective October 1, 2006. Allied's current fuel surcharge program with DaimlerChrysler will remain in place during the term of the Agreement.

The agreement remains subject to approval by the United States Bankruptcy Court for the Northern District of Georgia.

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.

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