Hub Group, Inc. Announces Results for the Third Quarter Ended September 30, 2002 and the Dial-in Information for its Quarterly Conference Call

Lombard, IL, November 4, 2002 – Hub Group, Inc. (NASDAQ: HUBG) reported results of operations for the quarter ended September 30, 2002.

Overall revenue for the Company increased 10.4% from the prior year to $356.6 million. Intermodal, brokerage and supply chain solutions revenue posted growth with intermodal increasing 13.3% to $249.2 million, brokerage revenue increasing 6.3% to $59.3 million and supply chain solutions revenue increasing 22.7% to $27.4 million. Revenue for Hub Group Distribution Services (“Hub Distribution”) declined to $20.7 million or 17.0% due primarily to the loss of a logistics customer with inadequate margins.

On a per share basis, the Company had earnings of $0.18 per share compared to a loss of $0.14 per share in the third quarter of 2001 and a loss of $0.29 per share in the second quarter of 2002. Gross margin as a percentage of revenue increased to 11.9% from 11.2% in the second quarter of 2002, but trailed last year’s third quarter of 13.8% due to lower intermodal margins resulting from customer mix, price competition and higher transportation costs. Selling, general and administrative expenses decreased 30.4% to $11.8 million in 2002 from $17.0 million in 2001 due in part to the $4.7 million write off of a receivable from a Korean steamship line customer in 2001. Excluding the write off, selling, general and administrative expenses decreased to 3.3% of revenue in 2002 from 3.8% in 2001. Salaries and benefits as a percentage of revenue decreased to 6.5% from 7.3% in 2001 attributed primarily to an increase in revenue and a decrease in headcount. While the Company’s 2001 results include goodwill amortization, the Company ceased amortizing goodwill as of January 1, 2002, in accordance with Statement of Financial Accounting Standards (“SFAS”) No. 142.

Hub Group’s Chairman, Phillip C. Yeager stated: “Our third quarter revenue results demonstrate that our growth momentum is continuing to build. The margin improvement over the second quarter represents the effect of steps taken during the quarter to reverse the negative trend in this area. These developments, along with our recently announced restructuring, which is directed at reducing overhead expenses, will positively impact profitability in 2003.”

Hub Group’s third quarter conference call will be open to the public. The call will be held on Wednesday November 6, 2002, at 3:00 p.m. CT. Anyone interested in listening should dial 888-622-5357 (Domestic) or 505-242-2204 (International) and ask for the Hub Group Conference Call (David Yeager is the chairperson). The participant code is 100999. The call will begin promptly at 3:00 p.m., so participants should call in at least 10 minutes prior to the call to ensure that operators have sufficient time to record your name and company affiliation. A replay of the call will be available beginning Wednesday November 6, 2002 at 6:00 p.m. CT through Friday November 8, 2002, at 11:50 p.m. CT. To access the replay, call 877-471-6581 (Toll-Free Domestic) or 402-970-2661 (International) and enter access code 641644.

In accordance with past practice, the Company will answer questions submitted in advance of the call via e-mail. Please direct your questions to rjurczyk@hubgroup.com prior to 4:00 p.m. CT on Tuesday November 5, 2002.

Statements in this press release that are not historical, including statements regarding Hub Group’s or management’s intentions, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently uncertain and subject to risks. Such statements should be viewed with caution. Actual results or experience could differ materially from the forward-looking statements as a result of many factors. Factors that could cause actual results to differ materially include the factors listed from time to time in Hub Group’s SEC reports including, but not limited to, the annual report on Form 10-K for the year ended December 31, 2001 and the quarterly report on Form 10-Q for the quarter ended March 31, 2002 and June 30, 2002. Hub Group assumes no liability to update any such forward-looking statements.

Hub Group, Inc. is a leading non-asset based freight transportation management company providing comprehensive intermodal, truckload, LTL, railcar, air freight, international and related logistics and distribution services. The Company operates through a network of over 30 offices throughout the United States, Canada and Mexico and had 2001 sales of approximately $1.3 billion.

HUB GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
			Three Months				Nine Months
			Ended September 30,				Ended September 30,
			2002	2001			2002	2001
				(Not Reviewed)				(Not Reviewed)
Revenue			$ 356,666	$ 323,046			$ 989,560	$ 987,004
Transportation costs			314,385	278,475			869,674	851,066
		Gross margin	42,281	44,571			119,886	135,938
Costs and expenses:
	Salaries and benefits		23,294	23,461			70,239	71,663
	Selling, general and administrative		11,822	16,989			34,945	41,541
	Depreciation and amortization of property and equipment		2,652	2,147			7,859	8,117
	Amortization of goodwill		–	1,435			–	4,305
	Impairment of property and equipment		–	–			–	3,401
		Total costs and expenses	37,768	44,032			113,043	129,027
		Operating income	4,513	539			6,843	6,911
Other income (expense):
	Interest expense		(2,539)	(2,426)			(7,307)	(7,793)
	Interest income		45	189			166	522
	Other, net		153	93			275	(185)
		Total other expense	(2,341)	(2,144)			(6,866)	(7,456)
Income (loss) before minority interest and provision for income taxes			2,172	(1,605)			(23)	(545)
Minority interest			–	280			(524)	680
Income (loss) before provision for (benefit from) income taxes			2,172	(1,885)			501	(1,225)
Provision for (benefit from) income taxes			793	(773)			409	(502)
Net income (loss)			$ 1,379	$ (1,112)			$ 92	$ (723)
Basic earnings (loss) per common share			$ 0.18	$ (0.14)			$ 0.01	$ (0.09)
Diluted earnings (loss) per common share			$ 0.18	$ (0.14)			$ 0.01	$ (0.09)
Basic weighted average number of shares outstanding			7,709	7,709			7,709	7,709
Diluted weighted average number of shares outstanding			7,709	7,709			7,714	7,709

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