ALLIED HOLDINGS SIGNS CONTRACT WITH IBM FOR IT OPERATIONS.

Allied Holdings, Inc. (AMEX:AHI), Decatur, Ga., has entered into a ten-year services agreement through which IBM will manage Allied's Information Technology applications in the areas of EDI, network services, technical services and applications development and support. This agreement complements Allied's decision in June 2001 for IBM to manage its mainframe and midrange computer operations. The agreement provides for disaster recovery, allows for faster rotation of hardware while lowering overall IT expenditures and allows Allied to improve capabilities and speed of execution of application development. Through its subsidiaries, Allied is the largest company in North America specializing in the delivery of new and used vehicles.

"Allied's strategic decision to entrust our IT applications to IBM is an evolutionary step in a better direction for our company. IBM is a world-class services provider and I believe that this new agreement will significantly improve Allied's IT capabilities, reduce costs, facilitate productivity in Allied's core operations and ultimately enhance customer value," said Hugh E. Sawyer, president and CEO of Allied Holdings, Inc.

Allied will transition 20 people to IBM and 15 employees will remain in various operations in the IT Department at Allied.

"Allied understands the value of using technology to enhance business results," said Dwayne Ingram, vice president, IBM travel and transportation industry. "By expanding our relationship, Allied is building an even stronger IT foundation to serve its business needs."

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 distribution 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.

For more information, call 404/370-4277 or visit http://www.alliedholdings.com.