ABX AIR ANNOUNCES RENEWAL OF DHL HUB SERVICES AGREEMENT

WILMINGTON, OH - May 19, 2008 - ABX Air, Inc., a subsidiary of Air Transport Services Group, Inc. (NASDAQ:ATSG), said today that its Hub and Line Haul Services Agreement with DHL is now scheduled to renew in August for an additional one-year period.

The Hub and Line Haul Services Agreement, as amended, covers sorting, maintenance, and other logistics services that ABX Air performs in support of DHL’s express package network in the United States, including its management of DHL’s national sorting center in Wilmington, and 15 of its regional sorting centers across the U.S.

ABX Air earns base markup revenues equal to 1.75% of eligible expenses it incurs under the agreement, and can earn additional markup revenues based on its performance against certain cost and service goals. In 2007, ABX Air’s revenues were $317 million, and its pretax earnings were $7.6 million, from services provided under this agreement.

The agreement took effect on August 15, 2003. A provision calls for subsequent automatic one-year renewals after the initial amended term of four years, unless either party provides notice of intent not to renew at least 90 days before the anniversary date. ABX Air had not received a non-renewal notice from DHL before the 90-day deadline.

In addition to its renewal provisions, the agreement allows for DHL, with a 60-day notice, to change the scope of services that ABX Air is contracted to provide to DHL.

                   

About ABX Air
ABX Air, Inc. (www.abxair.com) is an air cargo services provider operating

out of Wilmington, Ohio, and 15 hubs throughout the United States. In

addition to providing airlift capacity and sort facility staffing to DHL, ABX Air

is an FAA Part 121 operator and holds an FAA Part 145 Repair Certificate. It provides charter, maintenance and package handling services to a diverse

group of customers. ABX Air is the largest employer in a several-county area

in southwestern Ohio. ABX Air, Inc. is a wholly owned subsidiary of Air Transport Services Group, Inc. (NASDAQ:ATSG).

 

About Air Transport Services Group, Inc.
Air Transport Services Group, Inc. (NASDAQ: ATSG) is a leading provider of

air cargo transportation and related services to domestic and foreign air

carriers and other companies that outsource their air cargo lift requirements. Through five principal subsidiaries, including three airlines with separate and distinct U.S. FAA Part 121 Air Carrier Certificates, ATSG also provides aircraft leasing, aircraft maintenance services, airport ground services, fuel management, specialized transportation management, and air charter brokerage services. ATSG subsidiaries include ABX Air, Inc., Air Transport International, LLC, Cargo Aircraft Management, Inc., Capital Cargo International Airlines, Inc., and LGSTX Services, Inc. For more information, please see www.atsginc.com.

 

 

Contact:
ABX Air, Inc.
Beth Huber
937-366-2536

 

 

 

Contact:
Air Transport Services Group, Inc.
Quint Turner
937-382-5591

 

                 

Except for historical information contained herein, the matters discussed in this release contain forward-looking statements that involve risks and uncertainties. Air Transport Services Group, Inc.'s actual results may differ materially from the results discussed in the forward-looking statements. There are a number of important factors that could cause the Company's actual results to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, reductions in the scope of services ABX Air performs under its Hub Services Agreement with DHL, the resolution via arbitration of certain issues related to overhead allocation under the agreement,, maintaining cost- and service- level performance under the agreement and other factors that are contained from time to time in Air Transport Services Group's filings with the U.S. Securities and Exchange Commission, including the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers should carefully review this release and should not place undue reliance on the Company's forward-looking statements. These forward-looking statements were based on information, plans and estimates as of the date of this release. . Air Transport Services Group undertakes no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.