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Axis Group, Subsidiary of Allied Holdings, Inc., Announces New Contracts

11 May 1999

Axis Group, Subsidiary of Allied Holdings, Inc., Announces New Contracts

    DECATUR, Ga., May 10 -- Allied Holdings, Inc.
today announced that its wholly owned subsidiary, Axis Group, Inc., has
recently signed contracts to provide its Kar-Tainer(R) exterior loading
cassette system for containerized international shipment of Honda and
Volkswagen automobiles.
    Pasha Services of National City, Calif., has signed a five-year contract
for the lease of the cassettes to ship Honda cars from the US mainland to
Hawaii.
    Volkswagen Transport GmbH & Co. OHG of Wolfsburg, Germany has also chosen
the Axis Kar-Tainer exterior-loading cassette to ship Volkswagen A4 Golf
automobiles assembled in South Africa to Europe.  These vehicles are assembled
at the Volkswagen plant in Uitenhage, South Africa, then loaded on the
Kar-Tainer cassettes which are inserted into ocean containers for shipment.
Volkswagen plans to ship 60,000 vehicles during 1999 and an additional
60,000 vehicles per year through the end of 2003.
    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 the 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.
    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,
the highly competitive nature of the automotive distribution industry,
dependence on the automotive industry, labor disputes involving the Company or
its significant customers, the dependence on key personnel who have been hired
or retained by the Company, the availability of strategic acquisitions or
joint venture partners, changes in regulatory requirements which are
applicable to the Company's business, risks associated with conducting
business in foreign countries, and problems related to information technology
systems and computations that must be made by the Company or its customers and
vendors in 1999, 2000 or beyond.