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Allied Holdings Announces Voluntary Early Retirement Program

18 January 1999

Allied Holdings Announces Voluntary Early Retirement Program

    DECATUR, Ga., Jan. 18 -- Allied Holdings, Inc.
today announced the adoption of a voluntary early retirement program (VERP).
During the fourth quarter of 1998, the Company will expense approximately
$2.0 million, or $0.15 per share, for the VERP.  Approximately 40 employees
have elected early retirement and they will retire on June 30, 1999.  The
Company expects annual operating cost savings as a result of the program to be
approximately $1.5 million.
    In making the announcement, A. Mitchell Poole, Jr., president and chief
operating officer said: "During December, we completed the conversion of all
former Ryder Automotive Carrier Group terminal locations to Allied's computer
system, and we feel the timing is right to open an early retirement window.
This program will result in operating cost savings in the second half of 1999
and beyond as we continue to realize efficiencies from the Ryder acquisition."
Mr. Poole added, "We expect to report diluted earnings of $0.65 per share for
the fourth quarter of 1998, versus $0.56 per share in 1997.  Excluding the
VERP cost, earnings for the fourth quarter are in line with analysts'
estimates.  We are pleased with this 16 percent increase in quarterly earnings
and look forward to receiving the benefit of the VERP in future periods."
    Allied Holdings, Inc. is the parent company of several subsidiaries
engaged in automotive distribution.  The 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
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.  Allied Holdings' Axis Group, through its
subsidiaries, provides logistics solutions to the United States and
international automotive markets.  Axis utilizes innovative methods of
distribution, as well as traditional and emerging technologies, to help
customers solve the most complex transportation, inventory and logistics
problems.
    Statements in this press release that are not strictly historical are
"forward-looking" statements.  Investors are cautioned that such statements
are subject to certain risks and uncertainties that could cause actual results
to differ materially.  Without limitation, these risks and uncertainties
include economic recessions or downturns in new vehicle production or sales,
labor disputes involving the Company or its significant customers, risks
associated with conducting business in foreign countries and the ability to
integrate the acquisition of Ryder's Automotive Carrier Group.  Investors are
urged to carefully review and consider the various disclosures made by the
Company in this press release and in the Company's reports filed with the
Securities and Exchange Commission.