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New Logistics Subsidiary Established in Mexico By Axis Group

3 March 1999

New Logistics Subsidiary Established in Mexico By Axis Group, Subsidiary of Allied Holdings, Inc.

    DECATUR, Ga., March 3 -- Allied Holdings, Inc.
today announced that its wholly owned subsidiary, Axis Group, Inc., has
established a new subsidiary to provide logistics services to the automotive
industry in Mexico.  The new subsidiary, Axis Logistica, to be headquartered
in Guadalajara, Mexico, will provide vehicle processing and accessorization,
pre-delivery inspection, carrier management and lead logistics provider
functions. Jorge A. Lopez Colome, a highly regarded businessman with extensive
local and international consulting, general management, marketing and sales
experience, has been named president of Axis Logistica.
    Randall E. West, president of Axis Group, commented: "The Allied family of
companies has served auto manufacturers in the US and Canada for many years.
Axis recently established an operating subsidiary in Brazil to serve the
Mercosur market, and we are pleased to now be able to support these customers
at their operations in Mexico.  Mexico is a vital part of the North American
automotive market, and a key element in the global strategy of several major
auto manufacturers.  We are also delighted to have a business executive of the
caliber of Jorge Lopez Colome join us to lead this expansion."
    Robert J. Rutland, chairman and chief executive officer of Allied
Holdings, Inc., said: "We are pleased with this expansion as we continue to
work with our customers to support their global strategy.  This also enhances
Allied's vision to be the leading global provider of automotive distribution,
logistics and transportation services."
    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 US
and Canada.  Allied Holdings' Axis Group, through its subsidiaries, provides
logistics solutions to the automotive market.  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.