Allied Holdings' Chief Executive Officer Removes Himself From KERP Bonus

DECATUR, Ga., May 4, 2006 -- Allied Holdings, Inc. (OTC Pink Sheets: AHIZQ.PK) announced today that its President and Chief Executive Officer, Hugh E. Sawyer, has removed himself from eligibility for any stay bonus under the Company's Key Employee Retention Plan (KERP). As a result, Mr. Sawyer will not receive any bonus payment associated with the Company's KERP.

Mr. Sawyer has previously voluntarily accepted a 15% reduction in his annual salary. This salary reduction was effective on March 1, 2006. Mr. Sawyer contributes a portion of the cost of his health care benefits in a manner consistent with all other non-bargaining employees. Further, the Company stated that Mr. Sawyer would take additional 2006 salary reductions by participating in the Company's non-paid furloughs scheduled for May and June.

"When I considered all the facts of Allied's bankruptcy case, I ultimately concluded that a 15% reduction in my wages and the elimination of my KERP bonus were necessary and appropriate to support our Company and its employees. My decision to voluntarily accept these reductions in my compensation is consistent with the Company's longstanding value system and my personal convictions," Mr. Sawyer stated.

Mr. Sawyer added, "Our non-bargaining employees have already contributed to Allied's renewal. Our Teamster-represented employees in the United States will soon consider the question of comparable personal sacrifice. My KERP bonus must not be an issue as our Teamster drivers, mechanics and yard personnel consider the difficult sacrifices that will be necessary to help Allied survive and avoid the threat of liquidation."

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.