Allied Holdings, Inc. Extends Forbearance on Senior Secured Debtor-In- Possession Credit Agreement and Engages Glass & Associates, Inc. as Operational Advisor

DECATUR, Ga., April 6 -- Allied Holdings, Inc. (Pink Sheets: AHIZQ.PK) announced today that it has reached an agreement to extend a forbearance agreement with respect to the Company's senior secured, super priority, debtor-in-possession credit facility through April 18, 2006. On March 9, 2006, the Company entered into a forbearance agreement whereby the lenders agreed to refrain from exercising certain of their rights under the facility through April 3, 2006 as a result of certain financial covenant violations for the months of December 2005 and January 2006 and the extension addresses violations for the month of February 2006. Under the terms of the extension, the lenders will continue to make advances to the Company to the extent required by the credit facility so long as the Company remains in compliance with the terms and conditions of the facility and the forbearance agreement. The extension of the forbearance agreement requires the Company to pay the lenders a fee as a condition of the forbearance and to pay an additional fee within 30 days of the execution of the extension, but the additional fee will be waived if the Company and the lenders enter into an amendment to the credit facility.

The Company also announced that it anticipates that it will not have sufficient availability to meet its working capital needs as early as May of 2006 under the present terms of the facility. The Company is currently negotiating with the lenders in an effort to amend the facility to obtain additional availability in order to allow the Company to meet its working capital needs. The Company cannot provide assurance as to whether it will be able to amend the facility or, if amended, whether the additional availability if obtained will be sufficient to allow the Company to meet its needs or whether the Company will be able to remain in compliance with the facility as amended.

The extension of the forbearance agreement requires that the Company engage a consultant to advise the Company on various issues regarding the operation of the Company's business. Accordingly, the Company announced today that it has engaged Glass & Associates, Inc. as an operational improvement advisor, subject to approval of the engagement by the bankruptcy court. Glass will report to the Company's President and Chief Executive Officer, with access to the Company's Board of Directors as necessary.

"Glass and Allied's senior management team intend to build on the work done by our management team over the past several years and move forward with a process to explore all alternatives to enhance operational performance," said Hugh E. Sawyer, President and Chief Executive Officer.

Glass & Associates' professionals have in-depth expertise in operational and financial management. Working with senior management, Glass & Associates has a demonstrated track record of helping companies across multiple industry sectors achieve the best possible outcome for management, lenders, investors and employees. Glass & Associates has completed more than 600 engagements, including Mississippi Chemical Corporation, Southern States Cooperative, Parmalat USA, Tiro Industries, General Chemical and Hamilton Specialty Bar. Glass & Associates is headquartered in New York, with offices in Canton, Charlotte, Chicago, Dallas, Detroit and Houston. Glass & Associates' Internet address is www.glass-consulting.com .

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. These forward- looking statements involve a number of risks and uncertainties including risks and uncertainties relating to the following: the impact of the Chapter 11 proceedings and the related circumstances which could materially affect the amounts of assets and liabilities included in the consolidated financial statements or the Company's market share; risks associated with Allied's ability to obtain approval of and/or to implement its plan of reorganization; risks associated with Allied's ability to obtain exit financing to replace the Debtor-In-Possession Credit Facility; the ability to comply with the terms of our current debt agreements and customer contracts; economic recessions or downturns in new vehicle production or sales; war in the Middle East; increases in the cost and availability of fuel; the highly competitive nature of the automotive distribution industry; dependence on the automotive industry and ongoing initiatives of customers to reduce costs; loss or reduction of revenues generated by the Company's major customers or the loss of any such customers; the variability of OEM production and seasonality of the automotive distribution industry; Allied's highly leveraged financial position; Allied's ability to obtain financing in the future; Allied's ability to fund future capital requirements; increased costs, capital expenditure requirements and other consequences of the Company's aging fleet of Rigs as well as Rig purchasing cycles; labor disputes involving Allied or its significant customers; dependence on key personnel; increased frequency and severity of employee related accidents and workers' compensation claims; availability of appropriate insurance coverages in all categories; changes in the regulatory requirements which are applicable to Allied's business; changes in vehicle sizes, configurations and weights which may adversely impact vehicle deliveries per load; risks associated with doing business in foreign countries; the availability of qualified drivers; dependence on legacy information systems; dependence on IBM for mainframe and system support; increased frequency and severity of cargo claims; increased frequency and severity of traffic accidents; excess manufacturer production capacity which could lead OEMs to close manufacturing facilities; and efforts to improve network efficiency.

Many of these factors could cause Allied's actual results to differ materially from those suggested by the forward-looking statements and are beyond the Company's ability to control or predict. Allied cautions readers not to place undue reliance on the forward-looking statements and Allied also disclaims any obligation to update or review forward-looking statements, except as may be required by law.

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