Allied Holdings Reaches Agreement in Principle to Renew Toyota Contract

DECATUR, Ga., Jan. 13, 2006 -- Allied Holdings, Inc. (Pink Sheets: AHIZQ.PK) announced today that its subsidiary, Allied Systems, Ltd., has reached an agreement in principle to renew its vehicle delivery agreement with Toyota Motor Sales USA for vehicles delivered in the United States. The agreement will extend the Company's contract with Toyota in the United States through March 31, 2007.

The Agreement provides that Allied will continue to provide vehicle delivery services for Toyota in the United States at locations which generated approximately 60% of the Company's 2005 revenues associated with the Toyota account. During the first quarter of 2006, Allied will cease performing vehicle delivery services at locations which generated approximately 32% of the Company's 2005 revenues associated with the Toyota account in the United States.

The contract renewal also provides for an increase in the rates paid by Toyota to Allied beginning February 1, 2006 and continuing through March 31, 2007. In addition, the current fuel surcharge program and payment terms for services provided by Allied will remain in place through March 31, 2007.

The Company does not anticipate that there will be a material impact to its operating income as a result of the renewed agreement, as it expects the positive impact of the price increase to substantially offset the adverse impact to the Company resulting from the loss of business.

The contract renewal does not affect business handled by Allied for Toyota in Canada, which is covered by a separate agreement.

The renewal remains subject to the execution of a definitive agreement between the parties and 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.