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Allied Holdings, Inc. Subsidiary Announces New Business

24 June 1998

Allied Holdings, Inc. Subsidiary Announces New Business Awarded to its Brazilian Affiliate

    DECATUR, Ga., June 24 -- Allied Holdings, Inc.
announced today that the Brazilian affiliate, Axis Sinimbu Logistica
Automotiva (ASL), of its wholly-owned subsidiary, Axis Group, Inc., has been
selected by Mercedes-Benz do Brasil to provide supply chain logistics services
at its new assembly plant.
    Now under construction at Juiz de Fora in the state of Minas Gerais, the
new plant is scheduled to begin production in late 1998.  It will produce the
A-Class automobile, the first small car manufactured by Mercedes-Benz in
Brazil and the Mercosur market.
    ASL will be responsible for the Sao Bernardo do Campo Consolidation
Center.  In addition to the consolidation of partial loads, ASL will collect
production materials from local suppliers via scheduled, dedicated pickup
routes (limited to three suppliers per route), as well as full truck loads,
and direct delivery of these loads to the Mercedes-Benz plant in Juiz de Fora
without passing through the Consolidation Center.
    ASL was formed in February 1998 by combining the resources of three
leading Brazilian transport firms with those of Axis do Brasil, a joint
venture of Axis Group, Inc. and Coimex Trading Company of Vitoria, Brazil.
ASL provides complete supply chain logistics services for the automotive
industry in the Mercosur market of South America.
    Allied Holdings, Inc. is the parent Company of several subsidiaries
engaged in the automotive distribution business.  Allied Automotive Group
(AAG), through its subsidiaries, is the largest motor carrier in North America
specializing in the delivery of automobiles and light trucks.  AAG transports
automobiles and light trucks for all major domestic and foreign manufacturers
primarily from manufacturing plants, rail ramps, ports and auctions to
automobile dealers throughout the United States and Canada.  Axis Group, Inc.,
through its subsidiaries, provides logistics solutions to United States and
international automotive markets.  Axis utilizes innovative methods of
distribution, as well as traditional and emerging technologies, to help
customers solve complex transportation, inventory and logistics problems.