ABX HOLDINGS REPORTS FIRST QUARTER RESULTS

WILMINGTON, Ohio - May 12, 2008 - ABX Holdings, Inc. (NASDAQ:ABXA) today reported first-quarter net earnings of $3.8 million, or $0.06 per common share, on strong revenue growth to $382.1 million, driven both by its acquired airline and air services businesses and its expanded charter fleet of Boeing 767 freighters. In the first quarter of 2007, ABX Holdings earned $4.3 million, or $0.07 per share, on revenues of $288.1 million.

ABX Holdings acquired the businesses of Cargo Holdings International (CHI) at the end oflast year. The principal businesses of CHI include two independently certificated airlines, AirTransport International (ATI) and Capital Cargo International Airlines (CCIA), and a leasingcompany, Cargo Aircraft Management (CAM). Collectively, the CHI businesses contributedapproximately $75.4 million, or 80% of the year-over-year increase in ABX Holdings’ firstquarterconsolidated revenues. Growth in ABX Air’s businesses, principally its air charteroperations, provided the remainder of the revenue gain. The CHI businesses also contributedapproximately $1.7 million in net earnings during the quarter, net of acquisition-relatedinterest expense.

Joe Hete, President and CEO of ABX Holdings, said, “Our first-quarter results reflect acrossthe-board growth in each of our operating segments, and substantial growth in our chartersegment, plus substantial operating cash flows stemming from our increasing fleet of modern,fuel efficient wide-body freighter aircraft. While we remain strongly supportive of our principalcustomer DHL, and expect to remain a key provider of services to its U.S. network, theseresults also show that we are making great strides toward our goal of diversifying into newmarkets, via new, profitable air transportation related businesses. We will continue to investin and grow our family of businesses with an eye toward even stronger operating cash flow,supporting our current customers and attracting new ones with our expanded range ofservices and platform options.”

ABX Holdings’ pre-tax earnings declined to $6.2 million in the first quarter from $6.9 million ayear ago. The decline principally reflects a $4.6 million increase in net interest expenseassociated with financing of acquired businesses and additional aircraft. EBITDA (Earningsbefore Interest, Taxes, Depreciation and Amortization) increased 78% to $36.8 million in thefirst quarter, compared with $20.7 million in the year-earlier period (see Reconciliation ofEBITDA to GAAP Net Earnings at the end of this release). EBITDA is a non-GAAP measureof financial performance that management believes better reflects the cash-generatingperformance of asset-intensive, financially leveraged businesses such as ABX Holdings.

Revenues from the two commercial agreements with DHL increased 3 percent to $280.8million for the quarter, as expenses reimbursed without markup (principally fuel costs),increased sharply. Revenues from ACMI Services increased nearly eightfold due to theaddition of revenues from the CHI airlines, and growth in ABX Air’s charter fleet. Revenuesfrom all other operations, excluding reimbursed ACMI expenses, increased 6 percent to $8.5million. Pretax earnings were up from the DHL commercial agreements, and lower from ACMIServices and other operations.

“Under our aircraft, crew, maintenance and insurance (ACMI) agreements with principalcustomers, we are largely protected from the direct impact of sharply rising energy prices. Atthe same time, those rising costs are increasingly drawing customers to the fuel-efficientattributes of our Boeing 767 cargo aircraft, where we are No. 1 in the world with 40,” Hetesaid. “Labor and other operating costs, however, continued to affect our charter marginsduring the first quarter. We expect some relief from some of those costs, now that our flightcrew and maintenance domicile in Japan is operating as planned. In the meantime, wecontinue to benefit from the powerful cash-generating effects of our business model, and ourongoing relationships with many large customers around the world.”

Net earnings for the first quarter each year included deferred (non-cash) income tax expense,with the entire federal tax amount offset by a reduction in our net deferred tax assets. ABXexpects to record deferred income tax expense in 2008 at approximately 39% of pre-taxearnings. Remaining deferred tax assets are such that the Company does not expect to be acash payer of federal income taxes until 2011, or later.

Results Associated with the DHL Segment

ABX Air’s commercial agreements with DHL are an ACMI agreement and a Hub Servicesagreement. Under each agreement, ABX Air earns a base mark-up of 1.75% on eligible costsand can earn incremental mark-ups for meeting certain quarterly cost-related goals as well asother annual cost-related and service goals. Any earnings from attainment of annual costrelatedand service-related goals are recognized in the fourth quarter.

ABX Air’s pre-tax earnings from its two commercial agreements with DHL increased fourpercent to $4.0 million from $3.8 million during the first quarter of 2007. The principal factorwas an increase in incremental markup revenues of nearly $200,000, driven by improvedperformance against cost-related goals in both ACMI and Hub Services operations, despitechallenging winter weather and other operating conditions in many parts of the country. Basemarkup revenues were lower in the first quarter, as eligible costs subject to markup declined10 percent. U.S. network facilities and assets recaptured or removed from service by DHLsince the first quarter of 2007 were the principal cause of the reduction.

For the first quarter, ABX Air achieved the maximum level of incremental mark-up possiblerelated to cost goals under the ACMI agreement and 39% of the maximum, cost-relatedmarkup under the Hub Services agreement. In the first quarter of 2007, ABX Air achieved100% of its incremental cost-related markup under the ACMI agreement, but did not earn anyincremental cost-related markup under its Hub Services agreement.

Results from Non-DHL Operations

ACMI Services Segment
Following the acquisition of CHI, the Charter segment has become the ACMI Servicessegment, and now includes all of the ACMI and charter services that are provided outside theprincipal ACMI commercial agreement with DHL. Revenues for that segment increased to$63.1 million in the first quarter, excluding reimbursable expenses (principally fuel for ACMIcustomers) of $30.2 million, compared with $7.0 million for the first quarter the prior year.Pretax earnings for the segment were $1.1 million, down from $1.0 million in the first quarterof 2007.

The two former CHI airlines, CCIA and ATI, operated 30 aircraft during the quarter, mostlyunder ACMI service contracts for customers that include BAX Global Inc., the U.S. military,and DHL for international service. ABX Air generated $18.0 million of the ACMI Servicesrevenues, and approximately 20 percent of total ACMI/Charter revenue growth in thatsegment for the quarter. That growth came mainly from additional Boeing 767 aircraft thatABX Air has deployed with non-DHL customers since the first quarter of 2007.

The charter operations of ABX Air operated at a small loss for the first quarter of 2008 due tohigher aircraft maintenance and labor costs. Flight crew wages were negatively impactedduring the first quarter of 2008, when ABX Air flight crews decided not to voluntarily bid forextra flying, as is customary. As a result, ABX Air assigned the trips at an additional cost.Additionally, expenses during the quarter included additional flight crew costs associated withABX Air’s Asian operations, while it completed the set-up of a domicile of flight crews andmaintenance employees in Japan.

“We are very pleased with the strong growth of our ACMI Services businesses, both from ourlegacy ABX Air operations and the two airlines we acquired with CHI,” Hete said. “Theoutlook for this segment for the remainder of the year is encouraging, despite U.S. economicconditions and continued record high fuel costs, as we deploy more Boeing 767 and 757aircraft via all three airlines to serve customers into growing markets, either under traditionalACMI or leased aircraft agreements.”

CAM
Results from Cargo Aircraft Management (CAM) became a separate business segmenteffective with the first quarter of 2008. CAM’s revenues from aircraft leasing operations were$10.1 million during the quarter, and segment earnings were $4.3 million. While CAM isexpected to grow to serve outside customers, during the first quarter its results were derivedfrom leasing aircraft to airline subsidiaries of the Company, and therefore largely eliminated inconsolidated results. CAM expects to add four Boeing 767-200 extended-range aircraftduring 2008, two of which will be leased to an outside customer.

Other Business Activities
Other non-DHL revenues increased 6 percent to $8.5 million in the first quarter of 2008compared to the first quarter of 2007, driven by growth in aircraft maintenance services andparts sales. During 2008, margins in this segment declined, due principally to higher nonreimbursedcorporate expenses, including expenses related to the CHI acquisition.

Selected Items

DHL’s Plan for Improvement in its U.S. Financial Performance
On May 6, 2008, Deutsche Post World Net, DHL’s parent company, again reaffirmed thatDHL will maintain a strong market presence in the U.S., and expects to announce later thismonth its plan to improve DHL’s financial performance in the U.S. market. ABX Air continues to hold discussions with DHL regarding DHL’s U.S. operations, and expects that it will remaina strong business partner to DHL in the future.

DHL Arbitration Status
In November 2007, ABX Air and DHL agreed to arbitrate a dispute over the allocation ofcertain overhead expenses currently reimbursed by DHL to ABX Air under the terms of thecommercial agreements and several other issues relating to reimbursement of expenses in2007. A panel of three arbitrators is reviewing the pending issues. ABX Air expects a rulingon these issues by the end of the second quarter of this year. While the growth of ABX Air’snon-DHL operations would make it likely that those operations would assume an appropriatelevel of allocated overhead expense at some point in the future, no allocation of overheadexpenses to ABX Air’s non-DHL operations for 2007 is expected, and, accordingly, noreserves for that purpose have been established.

 

About ABX Holdings

ABX Holdings is a leading provider of air cargo transportation and related services todomestic and foreign air carriers and other companies that outsource their air cargo liftrequirements. Through five principal subsidiaries, including three airlines with separate anddistinct U.S. FAA Part 121 Air Carrier certificates, ABX Holdings also provides aircraftleasing, aircraft maintenance services, airport ground services, fuel management, specializedtransportation management, and air charter brokerage services. ABX Holdings’ subsidiariesinclude ABX Air, Inc., Air Transport International, LLC, Capital Aircraft Management, Inc.,Capital Cargo International Airlines, Inc. and LGSTX Services, Inc.

Except for historical information contained herein, the matters discussed in this releasecontain forward-looking statements that involve risks and uncertainties. ABX Holdings, Inc.'sactual results may differ materially from the results discussed in the forward-lookingstatements. There are a number of important factors that could cause the Company's actualresults to differ materially from those indicated by such forward-looking statements. Thesefactors include, but are not limited to, reductions in the scope of services ABX Air performsunder its commercial agreements with DHL, the resolution via arbitration of certain issuesrelated to overhead allocation under ABX Air’s commercial agreements with DHL,maintaining cost and service level performance under those agreements, the ability togenerate revenues and cash flow from sources other than DHL, the ability to generateearnings and cash flow sufficient to repay debt and realize certain tax benefits, the potentialfor accelerated repayment of ABX Air’s Promissory Note with DHL, achieving objectives forgrowth and profitability anticipated from the purchase of Cargo Holdings International, Inc.,and other factors that are contained from time to time in ABX Holdings’ filings with the U.S.Securities and Exchange Commission, including ABX Holdings' Annual Report on Form 10-Kand Quarterly Reports on Form 10-Q. Readers should carefully review this release andshould not place undue reliance on the Company's forward-looking statements. Theseforward-looking statements were based on information, plans and estimates as of the date ofthis release. ABX Holdings undertakes no obligation to update any forward-lookingstatements to reflect changes in underlying assumptions or factors, new information, futureevents or other changes.

For more information, contact:
ABX Holdings, Inc.
Quint Turner
937-382-5591