ABX Air to Acquire Cargo Holdings International

Business Wire, Nov 2, 2007

Expanded Market Leadership in 767 Freighter Services. Collectively, ABX Air and CHI will operate the world's largest fleet of Boeing 767-200 freighter aircraft with 48 of them, of which 39 are in service and the remainder are undergoing conversion to freighters. "Boeing 767s are especially well suited for many domestic and international ACMI applications," Hete said. "They offer significant advantages compared with most other freighters available today, including payload flexibility, transcontinental range, two-person crews, twin-engine efficiency, high reliability and Category III low visibility operating capabilities. The 767 will help us expand our share of many of the faster-growth markets we serve now, such as the Americas, Asia, and Europe, and opens new markets where our reliability, flexibility, and competitive cost structure offer a distinct advantage."

Based on ABX Air's current estimates and outlook, the CHI acquisition is expected to be accretive to ABX Holdings, Inc.'s earnings starting in 2008.

Commenting on ABX's decision, Hete said: "After evaluating a broad spectrum of strategic alternatives, our Board of Directors determined that this transaction has the potential to provide the greatest near and long-term value for our customers and shareholders. These companies are an excellent strategic fit, and together will be one of the world's best-performing, most diversified, customer-focused and cost-competitive providers of global air freight services."

"ABX Air has built an excellent record serving its principal customer, DHL," he said. "Adding the capabilities of the CHI companies creates a family of businesses with scale, services, experienced flight crews, technicians, and a solid operating track record. We can now expand our presence in the Americas, Asia and Europe, while continuing to provide superior, cost-efficient service to DHL in the United States."

ABX Air also has obtained a commitment from certain shareholders of CHI to provide subordinated financing in the event it should become necessary to retire ABX Air's $92.3 million note payable to DHL.

The acquisition is subject to customary regulatory approvals, and is expected to close before the end of 2007. In addition, the financing of the transaction is subject to the lenders' satisfaction that upon completion of the transaction, ABX Air would remain in compliance with its material agreements, including its ACMI agreement with DHL.

Stifel Nicolaus & Company acted as financial advisor to ABX Air in this transaction.

Investor Conference Call

ABX Air and CHI executives will discuss the acquisition in a conference call today at 10:30 a.m. Eastern Daylight Time. Participants should dial (800) 659-2037 and international participants should dial (617) 614-2713 ten minutes before the scheduled start of the call and ask for conference ID 28936942. The call will also be webcast live (listen-only mode) via www.abxair.com/ir and www.streetevents.com. A replay of the conference call will be available beginning one hour after the conclusion of the call. It will be available by phone through November 8, 2007, at (888) 286-8010 (international callers [617] 801-6888); uses pass code ID 59932580. The webcast replay will remain available via www.abxair.com/ir for 30 days.