Press Release

Hub Group, Inc. Reports Earnings for the Fourth Quarter and Full Year 2008 and Provides 2009 Guidance

DOWNERS GROVE, Ill., Jan. 29 /PRNewswire-FirstCall/ -- Hub Group, Inc. (Nasdaq: HUBG) today reported income for the quarter ended December 31, 2008 of $14.2 million. Hub Group's diluted earnings per share was $0.38 for the fourth quarter of 2008. Fourth quarter 2007 diluted earnings per share included a $0.04 tax benefit related to the resolution of a dispute with the IRS. Excluding this benefit, earnings per share decreased 12% this quarter.

Hub Group's revenue decreased 3% to $430.5 million compared to $445.5 million in the fourth quarter of 2007. Fourth quarter intermodal revenue decreased 3% to $305.3 million. The decrease was attributable to a 2% volume decrease and a 1% decrease in price. Truck brokerage revenue was down 13% to $82.6 million this quarter. Fourth quarter logistics revenue increased 19% to $42.6 million.

Commenting on the results, David P. Yeager, Chairman and Chief Executive Officer of Hub Group stated, "Even in this difficult economic environment, during the fourth quarter we generated solid earnings. Our variable cost, asset light model allowed us to reduce costs in the quarter to help compensate for the weaker economy. We will continue to work to improve efficiencies and maintain tight control over our costs and expenses in this challenging environment."

FULL YEAR 2008

Income for the year ended December 31, 2008 decreased 1% to $59.2 million compared to last year's income of $59.8 million. Hub Group's diluted earnings per share for 2008 was $1.58. Diluted earnings per share for the year ended December 31, 2007 included $0.07 in tax benefits related to a change in the Illinois tax law and resolution of a dispute with the IRS. Excluding these benefits, earnings per share increased 8% this year.

Revenue increased 12% for the year to $1,860.6 million. Gross margin grew 1% to $234.3 million.

Costs and expenses decreased 2% in 2008 to $138.8 million compared to $141.6 million in 2007.

As of December 31, 2008, the Company had $85.8 million of cash and no debt.

FULL YEAR 2009

Given the current operating environment, we are comfortable that the earnings for 2009 will be within the current analysts' range of $1.40 to $1.65 per diluted share.

CONFERENCE CALL

Hub will hold a conference call at 5:00 p.m. Eastern Time on Thursday, January 29, 2009 to discuss its fourth quarter and full year results.

Hosting the conference call will be David P. Yeager, Chairman and Chief Executive Officer and Terri A. Pizzuto, Executive Vice-President, Chief Financial Officer and Treasurer.

This call is being webcast and can be accessed through the Investors link at Hub Group's Web site at http://www.hubgroup.com. 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 (888) 680-0893. The conference call participant code is 26743830. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PTQYQKFKW . Pre-registrants will be issued a pin number to use when dialing into the live call which will provide quick access to the conference, bypassing the operator. The call will be limited to 60 minutes, including questions and answers.

An audio replay will be available through the Investors link on the Company's Web site at http://www.hubgroup.com. This replay will be available for 30 days.

ABOUT HUB GROUP: Hub Group, Inc. is a leading asset light freight transportation management company providing comprehensive intermodal, truck brokerage and logistics 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, 2007 and the reports on Form 10-Q for the periods ended March 31, 2008, June 30, 2008 and September 30, 2008. Hub Group assumes no liability to update any such forward-looking statements.



                                 HUB GROUP, INC.
              UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                    (in thousands, except per share amounts)

                                     Three Months         Twelve Months
                                  Ended December 31,    Ended December 31,
                                    2008      2007       2008        2007
    Revenue                       $430,472  $445,464  $1,860,608  $1,658,168

    Transportation costs           376,662   385,074   1,626,297   1,425,844
     Gross margin                   53,810    60,390     234,311     232,324

    Costs and expenses:
     Salaries and benefits          19,878    23,791      93,658      95,678

General and administrative 9,841 10,001 41,234 41,416

Depreciation and

      amortization                     970     1,035       3,957       4,490

Total costs and expenses 30,689 34,827 138,849 141,584

    Operating income                23,121    25,563      95,462      90,740

    Other income (expense):
     Interest expense                  (19)      (30)       (102)       (108)
     Interest income                   113       513       1,153       2,480
     Other, net                       (215)       34        (187)        116
      Total other (expense)
       income                         (121)      517         864       2,488

Income before provision for

     income taxes                   23,000    26,080      96,326      93,228

Provision for income taxes 8,790 8,083 37,081 33,429


    Net income                     $14,210   $17,997     $59,245     $59,799

Basic earnings per common

     share                           $0.38     $0.48       $1.59       $1.55

Diluted earnings per common

     share                           $0.38     $0.47       $1.58       $1.53

Basic weighted average number

of shares outstanding 37,195 37,562 37,174 38,660

Diluted weighted average

number of shares outstanding 37,501 37,978 37,484 39,128



                                 HUB GROUP, INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                       (in thousands, except share amounts)

                                              December 31,        December 31,
                                                   2008                2007

ASSETS

CURRENT ASSETS:

      Cash and cash equivalents                   $85,799             $38,002
      Accounts receivable
       Trade, net                                 145,362             160,944
       Other                                       10,318               9,828
      Prepaid taxes                                   123                  86
      Deferred taxes                                5,430               5,044

Prepaid expenses and other

       current assets                               4,346               4,318
        TOTAL CURRENT ASSETS                      251,378             218,222

     Restricted investments                         6,118               5,206
     Property and equipment, net                   32,713              29,662
     Other intangibles, net                         6,610               7,056
     Goodwill, net                                233,110             230,448
     Other assets                                   1,747               1,373
         TOTAL ASSETS                            $531,676            $491,967

LIABILITIES AND STOCKHOLDERS'

     EQUITY
     CURRENT LIABILITIES:
      Accounts payable
       Trade                                     $105,064            $123,020
       Other                                        6,107               6,683
      Accrued expenses
       Payroll                                      9,988              16,446
       Other                                       26,388              32,408
      Related party payable                           -                 5,000
        TOTAL CURRENT LIABILITIES                 147,547             183,557
     Non-current liabilities                        9,535              10,363
     Deferred taxes                                59,410              47,148

STOCKHOLDERS' EQUITY:

Preferred stock, $.01 par value;

2,000,000 shares authorized;

no shares issued or outstanding

        in 2008 and 2007                              -                   -

Common stock

Class A: $.01 par value;

97,337,700 shares authorized

and

41,224,792 shares issued in

2008 and 2007; 36,970,347

outstanding in 2008 and

36,666,731 outstanding in

         2007                                         412                 412

Class B: $.01 par value;

662,300 shares authorized;

662,296 shares issued and

         outstanding in 2008 and 2007                   7                   7
      Additional paid-in capital                  174,355             176,657

Purchase price in excess of

predecessor basis, net of tax

       benefit of $10,306                         (15,458)            (15,458)
      Retained earnings                           265,287             206,042

Treasury stock; at cost,

4,254,445 shares in 2008 and

       4,558,061 shares in 2007                  (109,419)           (116,761)
       TOTAL STOCKHOLDERS' EQUITY                 315,184             250,899
             TOTAL LIABILITIES AND
              STOCKHOLDERS' EQUITY               $531,676            $491,967



                                 HUB GROUP, INC.
            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (in thousands)

                                                      Twelve Months Ended
                                                         December 31,
                                                    2008               2007

Cash flows from operating

activities:

     Net income                                   $59,245            $59,799

Adjustments to reconcile net

income to net cash provided by

operating activities:

       Depreciation and amortization                7,369              7,195
       Deferred taxes                               9,294              3,523

Compensation expense related to

        share-based compensation plans              4,360              3,853
       Gain on sale of assets                         (22)              (160)

Changes in operating assets and

liabilities:

       Restricted investments                        (912)            (2,189)
       Accounts receivable, net                    15,092             (4,119)
       Prepaid taxes                                  (37)             2,033

Prepaid expenses and other

        current assets                                (28)               132
       Other assets                                  (374)                88
       Accounts payable                           (18,532)             4,223
       Accrued expenses                           (13,040)             4,094
       Non-current liabilities                       (908)             2,108

Net cash provided by operating

          activities                               61,507             80,580

Cash flows from investing

activities:

     Proceeds from sale of equipment                1,342                725

Purchases of property and

      equipment                                   (10,732)           (10,197)

Cash used in acquisition of

      Comtrak, Inc.                                (5,000)            (5,000)

Net cash used in investing

         activities                               (14,390)           (14,472)

Cash flows from financing

activities:

Proceeds from stock options

      exercised                                       407                760
     Purchase of treasury stock                    (2,630)           (76,309)

Excess tax benefits from share-

      based compensation                            2,903              3,952

Net cash provided by (used in)

         financing activities                         680            (71,597)


Net increase (decrease) in cash and

     cash equivalents                              47,797             (5,489)

Cash and cash equivalents beginning

     of year                                       38,002             43,491

Cash and cash equivalents end of

     year                                         $85,799            $38,002

SOURCE Hub Group, Inc.

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