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Hub Group, Inc. Reports Record First Quarter 2005 Earnings

DOWNERS GROVE, Ill., April 20, 2005 /PRNewswire-FirstCall via COMTEX/ — Hub Group, Inc.
(Nasdaq: HUBG) today reported record net income for the quarter ended
March 31, 2005 of $5.3 million. This represents a 97% increase in first
quarter net income versus the first quarter of 2004. Hub Group’s diluted
earnings per share of $0.51 for the quarter ended March 31, 2005 represents an
increase of 55% compared to last year’s first quarter diluted earnings per
share of $0.33 on 28% higher average diluted shares outstanding in the 2005
period. Costs and expenses decreased 3.9% in the first quarter of 2005 to
$34.1 million compared to $35.5 million in the first quarter of 2004,
reflecting the benefits from the Company’s improved operating efficiencies and
cost reduction efforts. Interest expense decreased from $1.7 million in first
quarter 2004 to $0.2 million in 2005 due to the extinguishment of debt in the
third quarter of 2004.

Hub’s revenue grew by 3.5% to $339.9 million as compared to $328.3 million
in the first quarter of 2004. First quarter intermodal revenue decreased
1.1% to $233.7 million. Truckload brokerage revenue increased 18.0% to
$60.1 million this quarter. First quarter logistics revenue increased 4.9% to
$35.6 million. Hub Group Distribution Services revenue increased 47.1% to
$10.5 million in the first quarter of 2005.

Commenting on the results, David P. Yeager, Vice-Chairman and Chief
Executive Officer of Hub Group, stated, “Our operating efficiencies resulted
in increased margin and reduced costs producing record first quarter results.
While we are pleased with these results, we remain committed to focusing on
profitable revenue growth.”


As previously announced, in February 2005, the Board of Directors approved
a 2 for 1 stock split. The Board has set May 4, 2005 as the record date for
this stock split and May 11, 2005 as the payment date, contingent on receiving
shareholder approval, at its annual meeting on May 4, 2005, to increase the
number of authorized shares of Class A common stock. If approved by Hub’s
shareholders, the stock split will be in the form of a stock dividend, which
will be tax-free to shareholders.


Given the current operating environment, we are comfortable that the
earnings for 2005 will be within the analysts’ range of $2.58 to $2.67 per
diluted share.

Certain prior year amounts have been reclassified to conform to the
current year presentation.


Hub will hold a conference call at 11:00 a.m. Eastern Time (10:00 a.m.
Central Time) on Thursday, April 21, 2005 to discuss its first quarter

Hosting the conference call will be David P. Yeager, Vice-Chairman and CEO
and Thomas M. White, Senior Vice-President, Chief Financial Officer and

This call is being webcast by Thomson/CCBN and can be accessed through the
Investor Relations link at Hub Group’s Web site at or
individual investors can access the audio webcast at and institutional investors can access the
webcast at . The webcast is listen-only. Those
interested in participating in the question and answer session should follow
the telephone dial-in instructions below.

To participate in the conference call by telephone, please call ten
minutes early by dialing (800) 591-6942. The conference call participant code
is 63789436. The call will be limited to 60 minutes, including questions and

An audio replay will be available through the Investor Relations link on
the Company’s Web site at . This replay will be
available for 30 days.

ABOUT HUB GROUP: Hub Group, Inc. is a leading non-asset based freight
transportation management company providing comprehensive intermodal,
truckload brokerage and logistics and distribution services. The Company
operates through a network of over 30 offices throughout the United States,
Canada and Mexico.

CERTAIN FORWARD-LOOKING STATEMENTS: Statements in this press release that
are not historical, including statements about Hub Group’s or management’s
earnings guidance, 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, 2004. Hub Group assumes no liability to update any
such forward-looking statements.

                   (in thousands, except per share amounts)

                                                        Three Months
                                                        Ended March 31,
                                                   2005               2004

    Revenue                                      $339,858           $328,302

    Transportation costs                          296,613            286,498
      Gross margin                                 43,245             41,804

    Costs and expenses:
      Salaries and benefits                        21,875             22,342
      General and administrative                    9,752             10,281
      Depreciation and amortization of
       property and equipment                       2,483              2,884
        Total costs and expenses                   34,110             35,507

         Operating income                           9,135              6,297

    Other income (expense):
      Interest expense                               (207)            (1,713)
      Interest income                                 200                 53
      Other, net                                       14                 41
        Total other income (expense)                    7             (1,619)

    Income before provision for income
     taxes                                          9,142              4,678

    Provision for income taxes                      3,794              1,965

    Net income                                     $5,348             $2,713

    Basic earnings per common share                 $0.53              $0.35

    Diluted earnings per common share               $0.51              $0.33

    Basic weighted average number of
     shares outstanding                            10,141              7,746

    Diluted weighted average number of
     shares outstanding                            10,579              8,294

                               HUB GROUP, INC.
                     (in thousands, except share amounts)

                                                 March 31,        December 31,
                                                   2005                2004
       Cash and cash equivalents                  $15,570             $16,806
       Restricted investments                         661                 -
       Accounts receivable
         Trade, net                               139,113             141,079
         Other                                      7,527               7,996
       Deferred taxes                               4,412               4,667
       Prepaid expenses and other
        current assets                              3,715               4,746
           TOTAL CURRENT ASSETS                   170,998             175,294

     PROPERTY AND EQUIPMENT, net                   17,854              19,487
     GOODWILL, net                                215,175             215,175
     OTHER ASSETS                                     371                 889
             TOTAL ASSETS                        $404,398            $410,845

        Accounts payable
         Trade                                   $115,250            $115,819
         Other                                      2,925               1,660
        Accrued expenses
         Payroll                                   10,262              19,542
         Other                                     12,031              15,100
           TOTAL CURRENT LIABILITIES              140,468             152,121

      DEFERRED TAXES                               31,545              31,788
        Preferred stock, $.01 par value,
         2,000,000 shares authorized;                 -                   -
         no shares issued or outstanding
         in 2005 and 2004
        Common stock
          Class A: $.01 par value;
           12,337,700 shares authorized;
           9,809,476 shares issued and
           9,727,917 outstanding in
           2005; 9,635,657 issued and
           outstanding in 2004                         98                  96
          Class B:  $.01 par value;
           662,300 shares authorized;
           662,296 shares issued and
           outstanding in 2005 and 2004                 7                   7
        Additional paid-in capital                187,068             182,365
        Purchase price in excess of
         predecessor basis, net of tax
         benefit of $10,306                       (15,458)            (15,458)
        Retained earnings                          69,959              64,611
        Unearned compensation                      (4,137)             (4,685)
        Treasury stock, at cost (81,559
         shares in 2005)                           (5,152)                -
          TOTAL STOCKHOLDERS' EQUITY              232,385             226,936
             STOCKHOLDERS' EQUITY                $404,398            $410,845

                               HUB GROUP, INC.
                                (in thousands)

                                                      Three Months Ended
                                                            March 31,
                                                     2005               2004

    Cash flows from operating
      Net income                                    $5,348             $2,713
      Adjustments to reconcile net
       income to net cash provided
       by operating activities:
        Depreciation and amortization of
         property and equipment                      2,593              2,911
        Deferred taxes                               3,008              1,961
        Compensation expense related to
         restricted stock                              520                404
        Gain on sale of assets                         (12)               (18)
        Other assets                                   518                188
        Changes in working capital:
          Restricted investments                      (661)               -
          Accounts receivable, net                   2,435              3,466
          Prepaid expenses and other
           current assets                            1,031                462
          Accounts payable                             696             (1,867)
          Accrued expenses                         (12,349)            (4,072)
            Net cash provided by operating
             activities                              3,127              6,148

    Cash flows from investing
      Purchases of property and
       equipment, net                                 (948)              (460)
        Net cash used in investing
         activities                                   (948)              (460)

    Cash flows from financing
      Proceeds from stock options
       exercised                                     2,184              2,090
      Purchase of treasury stock                    (5,599)            (2,767)
      Net payments on revolver                         -               (3,000)
      Payments of long term debt                       -               (2,011)
        Net cash used in financing
         activities                                 (3,415)            (5,688)

    Net decrease in cash and cash
     equivalents                                    (1,236)               -
    Cash and cash equivalents beginning
     of period                                      16,806                -
    Cash and cash equivalents end of
     period                                        $15,570               $-

    Supplemental disclosures of cash
     flow information
      Cash paid for:
        Interest                                      $-               $1,357
        Income taxes                                  $333               $-

                               HUB GROUP, INC.
                            MODAL REVENUE SUMMARY
                                (in thousands)

                           First    Second    Third     Fourth
                          Quarter   Quarter   Quarter   Quarter     Total
                            2004      2004      2004      2004       2004

    Intermodal            $236,321  $247,940  $259,958  $270,314  $1,014,533
    Brokerage               50,960    56,778    56,124    61,604     225,466
    Logistics               33,913    33,786    34,028    38,996     140,723
    Total Core             321,194   338,504   350,110   370,914   1,380,722

    HGDS                     7,108    10,467    11,995    16,514      46,084

    Consolidated          $328,302  $348,971  $362,105  $387,428  $1,426,806

         NOTE:     HGDS transferred its Pharmaceutical business to Logistics
                   in August 2004, resulting in an increase in Logistics
                   revenue of $4,315 for the year ended December 31, 2004.

SOURCE Hub Group, Inc.

Amy Lisek of Hub Group, Inc., +1-630-795-2214

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