Allied Holdings Reaches Agreement To Renew Honda Contract

DECATUR, Ga., March 16 -- Allied Holdings, Inc. announced today that its subsidiary, Allied Systems, Ltd., has renewed its vehicle delivery agreement with American Honda Motor Co. for vehicles delivered in the United States. The agreement will extend the Company's current contract with Honda in the United States through March 31, 2009. Pursuant to the terms of the renewed agreement, Allied will continue performing vehicle delivery services at all of the locations in the United States that it currently serves for Honda.

The contract renewal includes increases in the underlying rates paid by Honda to Allied for vehicle delivery services effective April 1, 2006, and again on April 1, 2007 and on April 1, 2008. Honda's current fuel surcharge program with Allied 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.