Allied Holdings, Inc. Amends Its Debtor-in-Possession Credit Facility

DECATUR, Ga., April 19 -- Allied Holdings, Inc. (Pink Sheets: AHIZQ.PK) announced today that it entered into an amendment to its debtor-in-possession credit facility (the "DIP Facility") with GE Commercial Finance, Morgan Stanley Senior Funding, Inc., GE Capital Markets Group, Inc. and the other lenders from time to time a party thereto.

The amendment, which was made effective as of April 18, 2006, provides for the creation of an overadvance facility under the Term B Loan under the DIP Facility pursuant to which up to an additional $5 million may be advanced to the Company at the discretion of Morgan Stanley Senior Funding, Inc. as the Term B agent (the "Term B Agent"). The maturity date for the overadvance facility is May 18, 2006, provided, however, that the maturity date may be extended for a period of up to an additional thirty days in the sole discretion of the Term B Agent if certain conditions are met by the Company, including filing with and approval by the United States Bankruptcy Court for the Northern District of Georgia of an emergency motion for a 10% reduction in the wages and benefits payable to the Company's employees covered by its collective bargaining agreement with the International Brotherhood of Teamsters. The Company filed the emergency motion on April 13, 2006 and it is currently pending before the court with a hearing on the motion set for April 26.

The overadvance facility bears interest at a rate equal to one-month LIBOR plus 9.5%, however, as a result of the Company's previously announced financial covenant defaults under the DIP Facility, the Company has agreed to pay a default rate of interest on all loans under the DIP Facility, including the new overadvance facility. The default rate of interest is 2% over the otherwise applicable rates. The amendment provides that if the Company is successful in receiving commitments for additional funds to be provided to the Company by June 15, 2006 in an amount not less than $20 million, the default interest rates will no longer be paid as long as there are no additional events of default under the DIP Facility.

The amendment also provides for a prepayment penalty in the event that the Company prepays any or all of the term loans under the DIP Facility, including the overadvance facility, unless such prepayment results from a refinancing provided by the Term B Agent. The prepayment penalty is equal to 1% of the principal amount of the loans being prepaid. In addition, the amendment to the DIP Facility revises, for the applicable periods ending March 31, 2006, April 30, 2006 and May 31, 2006 only, certain financial covenants relating to maximum capital expenditures, the minimum fixed charge coverage ratio, minimum EBITDA and maximum leverage ratio; however, the changes to these covenants do not affect the Company's prior covenant defaults that are subject to the previously announced Forbearance Agreement with the lenders dated March 9, 2006 and extended on April 3, 2006. The amendment to the DIP Facility further extends the applicable forbearance period from April 18, 2006 to the maturity date of the overadvance.

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.