Air Express: Earnings News Release For more information, please contact: Jay Jacobson, Investor Relations (203) 655-6978 AIR EXPRESS INTERNATIONAL (AEI) REPORTS 1998 THIRD QUARTER RESULTS DARIEN, CT, October 29, 1998 -- Air Express International Corporation (Nasdaq-NMS: AEIC) today announced results for its third quarter ended September 30, 1998. AEI reported third quarter net income per diluted share of $.38, the same as third quarter last year. Third quarter net income was $13,010,000 compared to $13,363,000, a decline of three percent. Gross revenues for the third quarter were $372,961,000 versus $395,405,000 for the same period last year, a decrease of six percent. Excluding the negative impact of the stronger U.S. dollar when converting foreign currency revenues into U.S. dollars for financial reporting purposes, the decline in gross revenues would have been two percent. Net revenues for the third quarter were $123,893,000 compared to $125,004,000 for the third quarter last year. Operating profit for the quarter was $18,630,000 compared to last year's $19,738,000, a decrease of six percent. For the nine months ended September 30, 1998, earnings per diluted share were $1.04 compared to $1.00 for the nine months last year, an increase of four percent. Net income for the nine-month period was $36,401,000 versus $34,944,000, an increase of four percent. Gross revenues for the nine-month period were $1,123,831,000, approximately the same as last year, while net revenues for the first nine months of 1998 were $364,781,000 compared to $359,701,000 in 1997. Operating profit for the nine months ended September 30, 1998 was $51,423,000, approximately the same as last year. Third quarter 1998 results reflect a continuation of the trend reported in the second quarter. The Company's airfreight shipping volumes were flat versus last year's third quarter due primarily to the economic difficulties in Asia and their related effects, and to declines in shipping volumes from the Company's computer-related customers. Gross revenues for the Company's airfreight services declined eight percent to $282,171,000 reflecting the declines in airfreight shipping volumes. This decline in gross revenues was partially offset by improved gross margin as airfreight net revenues declined only three percent to $77,548,000. Guenter Rohrmann, AEI's President and Chief Executive Officer, stated, "Our results for the third quarter and year to date continue to be below our expectation due to continued economic difficulties in Asia and softness in the computer industry. However, we are pleased with the quick response of our people around the world to control costs which in turn has resulted in maintaining our profitability on the lower volumes. Once the economic climate improves, we will be in an even better position to take full advantage of AEI's strong and efficient global network." 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. Air Express International, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) For the Quarter For the Nine Months Ended September 30, Ended September 30, 1998 1997 1998 1997 Gross Revenues: Airfreight $282,171 $305,918 $865,186 $875,159 Ocean freight 52,523 54,248 147,375 152,041 Customs brokerage and other 38,267 35,239 111,270 105,951 Total Gross Revenues $372,961 $395,405 $1,123,831 $1,133,151 Net Revenues: Airfreight $ 77,548 $ 79,722 $230,116 $226,139 Ocean freight 16,036 15,429 45,146 43,938 Customs brokerage and other 30,309 29,853 89,519 89,624 Total Net Revenues 123,893 125,004 364,781 359,701 Operating Expenses: Terminal 67,027 68,008 200,959 196,521 Selling, general and administrative 38,236 37,258 112,399 111,744 OPERATING PROFIT 18,630 19,738 51,423 51,436 Interest income, net 566 375 1,556 853 Other, net 1,208 1,179 4,849 3,531 INCOME BEFORE TAXES 20,404 21,292 57,828 55,820 Provision for income taxes 7,394 7,929 21,427 20,876 NET INCOME $ 13,010 $ 13,363 $ 36,401 $ 34,944 EARNINGS PER SHARE: Basic $ .38 $ .39 $ 1.05 $ 1.02 Diluted $ .38 $ .38 $ 1.04 $ 1.00 Weighted average number of common shares: Basic 34,314 34,428 34,530 34,302 Diluted 34,633 35,446 35,006 35,034 Ends.