Air Express: Earnings News Release For more information, please contact: Jay Jacobson, Financial Relations (203) 655-6978 AIR EXPRESS INTERNATIONAL (AEI) REPORTS 1998 FIRST QUARTER RESULTS: NET INCOME UP 14% ON 6% GAIN IN GROSS REVENUES DARIEN, CT, May 1, 1998 -- Air Express International Corporation (Nasdaq-NMS: AEIC) today announced results for its first quarter ended March 31, 1998. AEI reported net income for a first quarter of $9,730,000, an increase of 14% over 1997 net income of $8,539,000. Diluted earnings per share were $.28 for the period, up 12% versus year-earlier diluted EPS of $.25. First quarter 1998 gross revenues of $372,376,000 were up 6% from the 1997 level of $351,155,000. Gross revenues would have increased by 13% excluding the dampening year-over-year translation effect of the stronger dollar versus most foreign currencies as well as the loss of revenues from an overseas ocean freight subsidiary, which was divested last quarter. Net revenues, affected by the above as well, rose 5% to $117,853,000 for the 1998 quarter, while operating profit increased 7% to $13,156,000 from $12,287,000 in 1997. Guenter Rohrmann, AEI's President and Chief Executive Officer, stated, "We are pleased that overall results for the quarter met our expectations. Our foreign operations posted a significant year-to-year gain in operating profit. However, U.S. operating results for the period were somewhat disappointing as U.S. operating profit was below last year's level. The Company's joint venture operations, particularly the 50% equity stake in our Korean agent acquired last May and the 38% equity interest taken in our Costa Rican agent this past January, contributed positively to our performance." Rohrmann continued, "We remain optimistic about the Company's prospects for the rest of the year. Regarding Asia, we continue to follow the situation closely. Export activity to Asia from all worldwide points has declined but was offset by increased import activity to the rest of the world from Asia. We are confident that our leading market position and strong global network will allow us to maintain our growth through any difficulties in that area." AEI is a leading worldwide provider of freight transportation and related logistics services. The Company offers fully integrated international air and ocean freight forwarding, customs brokerage, warehousing and distribution, and information services through its global network of 711 cities in 135 countries. -0- This press release contains forward-looking statements. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those anticipated; among these are the Company's dependence upon conditions in the air and ocean freight forwarding industry, the size and resources of many of the Company's competitors and the need for the Company to continue to effectively integrate acquired businesses and successfully deliver its primary services. Additional information with respect to these and other factors which could materially affect the Company is included in the Company's filings with the Securities and Exchange Commission, including its most recent proxy statement and 10-K. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) (In thousands, except per share data) For the Quarter Ended March 31, ------------------------- 1998 1997 -------- -------- Gross Revenues: Airfreight $291,530 $272,655 Ocean freight 43,155 44,308 Customs brokerage and other 37,691 34,192 -------- -------- Total Gross Revenues $372,376 $351,155 ======== ======== Net Revenues: Airfreight $ 74,582 $ 69,433 Ocean freight 12,477 13,267 Customs brokerage and other 30,794 29,731 -------- -------- Total Net Revenues 117,853 112,431 Operating Expenses: Terminal 67,126 64,126 Selling, general and administrative 37,571 36,018 -------- -------- OPERATING PROFIT 13,156 12,287 Interest income, net 357 208 Other, net 2,055 1,278 ------- -------- INCOME BEFORE TAXES 15,568 13,773 Provision for income taxes 5,838 5,234 -------- -------- NET INCOME $ 9,730 $ 8,539 ======== ======== EARNINGS PER SHARE: Basic $ .28 $ .25 ======== ======== Diluted $ .28 $ .25 ======== ======== Weighted average number of common shares (000): Basic 34,639 34,184 ======== ======== Diluted 35,381 34,883 ======== ======== Ends.