Allied Holdings Announces Plan to Reduce Chief Executive Officer Salary

DECATUR, Ga., Feb. 22, 2006 -- Allied Holdings, Inc. (Pink Sheets: AHIZQ.PK) announced today that its President and Chief Executive Officer, Hugh E. Sawyer, has volunteered to take a 15% cut in his annual salary. The salary reduction will begin on March 1, 2006.

Hugh E. Sawyer, Allied Holdings' President and Chief Executive Officer, stated, "Our objective is to use the bankruptcy process to lower our debt, reduce the multi-year cost increases associated with our contract with our Teamster-represented employees in the U.S. and address certain customer pricing issues. While progress has been made and many of our key constituencies have already sacrificed greatly in an effort to allow our Company to emerge from bankruptcy, there is still work to be done. All of our constituencies must sacrifice in a manner necessary to permit our Company to emerge from bankruptcy."

"I recognize that the decision to reduce my annual salary by 15% is a modest step in terms of our Company's overall cost structure, but I believe this decision is appropriate given my commitment to shared sacrifice and the values upon which our Company was founded," Mr. Sawyer continued. Mr. Sawyer already contributes a portion of the cost for his health care benefits in a manner consistent with all other non-bargaining employees.

Details regarding 2005 total compensation will not be released until the spring, but Mr. Sawyer stated that he would not receive any bonus or equity compensation for 2005.

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 approval of the renewed agreement by the Bankruptcy Court and the effect the agreement with Toyota will have on the Company's financial performance during the term of the agreement, 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 and customer contracts, the ability of the Company to obtain financing in the future, the Company's highly leveraged financial position, and the ability of the Company to successfully complete a plan of reorganization and emerge from bankruptcy. 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.