Press Release

Hub Group, Inc. Reports Record Earnings for the Second Quarter

DOWNERS GROVE, Ill., July 20, 2005 /PRNewswire-FirstCall via COMTEX/ -- Hub Group, Inc. (Nasdaq: HUBG) today reported record net income for the quarter ended June 30, 2005 of $7.9 million. This represents a 95% increase in second quarter net income versus the second quarter of 2004. Hub Group's diluted earnings per share for the quarter ended June 30, 2005 is $0.38 which represents an increase of 58% when compared to diluted earnings per share for the quarter ended June 30, 2004 of $0.24. Diluted shares outstanding increased by 23% due primarily to our stock offering in July 2004.

Costs and expenses decreased 5.5% in the second quarter of 2005 to $33.4 million compared to $35.4 million in the second quarter of 2004, reflecting the benefits from the Company's improved operating efficiencies and cost containment programs. Interest expense decreased from $1.7 million in the second quarter 2004 to $0.1 million in 2005 due to the extinguishment of debt in the third quarter of 2004.

Hub's revenue grew by 6.5% to $371.6 million as compared to $349.0 million in the second quarter of 2004. Second quarter intermodal revenue increased 4.6% to $259.3 million. Truckload brokerage revenue increased 19.8% to $68.0 million this quarter. Second quarter logistics revenue increased 2.2% to $34.5 million. Hub Group Distribution Services revenue decreased 6.3% to $9.8 million in the second quarter of 2005.

Commenting on the results, David P. Yeager, Vice-Chairman and Chief Executive Officer of Hub Group stated, "We are pleased with our record second quarter. Our focus on yield management, while maintaining effective control of our costs, continues to generate strong shareholder returns."

Stock Split

As previously announced, the Board of Directors approved a 2 for 1 stock split in the form of a stock dividend which was paid on May 11, 2005. Accordingly, all share and per share amounts have been adjusted to give retroactive effect to the stock split.

Full Year 2005

Given the current operating environment, we are comfortable that the earnings for 2005 will be within the analysts' range of $1.35 to $1.45 per diluted share.

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

Conference Call

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

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

This call is being webcast by Thomson/CCBN and can be accessed through the Investor Relations link at Hub Group's Web site at http://www.hubgroup.com or individual investors can access the audio webcast at http://www.fulldisclosure.com and institutional investors can access the webcast at http://www.streetevents.com . 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) 638-4817. The conference call participant code is 96097629. The call will be limited to 60 minutes, including questions and answers.

An audio replay will be available through the Investor Relations 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 non-asset based freight transportation management company providing comprehensive intermodal, truckload brokerage, 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 and Form 10-Q for the period ended March 31, 2005. 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             Six Months
                                     Ended June 30           Ended June 30
                                    2005       2004         2005       2004

    Revenue                       $371,630   $348,971     711,488    $677,273

    Transportation costs           324,721    305,306     621,334     591,805
      Gross margin                  46,909     43,665      90,154      85,468

    Costs and expenses:
      Salaries and benefits         21,503     22,233      43,379      44,575
      General and administrative     9,489     10,315      19,241      20,596
      Depreciation and amortization
        of property and equipment    2,453      2,851       4,936       5,734
        Total costs and expenses    33,445     35,399      67,556      70,905

          Operating income          13,464      8,266      22,598      14,563

    Other income (expense):
      Interest expense                (140)    (1,684)       (347)      (3397)
      Interest income                  183         56         384         109
      Other, net                        40        363          54         404
        Total other income (expense)    83     (1,265)         91      (2,884)

    Income before provision for
      income taxes                  13,547      7,001      22,689      11,679

    Provision for income taxes       5,622      2,942       9,416       4,907

    Net income                      $7,925     $4,059     $13,273      $6,772


    Basic earnings per common
      share                          $0.40      $0.26       $0.66       $0.43

    Diluted earnings per common
      share                          $0.38      $0.24       $0.63       $0.40

    Basic weighted average number
      of shares outstanding         19,977     15,702      20,130      15,598

    Diluted weighted average
      number of shares outstanding  20,796     16,938      20,977      16,762



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

                                                June 30,          December 31,
                                                  2005                 2004
                                              (Unaudited)
    ASSETS
      CURRENT ASSETS:
        Cash and cash equivalents                 $6,972              $16,806
        Restricted investments                       885                   --
        Accounts receivable
          Trade, net                             140,609              140,762
          Other                                   13,576                8,313
        Deferred taxes                             4,364                4,667
        Prepaid expenses and other
          current assets                           3,126                4,746
            TOTAL CURRENT ASSETS                 169,532              175,294

     PROPERTY AND EQUIPMENT, net                  16,385               19,487
     GOODWILL, net                               215,175              215,175
     OTHER ASSETS                                    428                  889
       TOTAL ASSETS                              401,520             $410,845


    LIABILITIES AND STOCKHOLDERS'
      EQUITY
        CURRENT LIABILITIES:
        Accounts payable
          Trade                                 $116,820             $115,819
          Other                                    3,598                1,660
      Accrued expenses
        Payroll                                   14,052               19,542
        Other                                     13,909               15,100
          TOTAL CURRENT LIABILITIES              148,379              152,121

     DEFERRED TAXES                               35,723               31,788
     STOCKHOLDERS' EQUITY:
       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;
           47,337,700 shares authorized;
           20,281,248 shares issued
           (including treasury stock in
           2005) and 19,329,763 outstanding
           in 2005; 19,933,610 shares
           issued and outstanding in 2004           203                  199
         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                184,477               182,262
      Purchase price in excess of
        predecessor basis, net of tax
        benefit of $10,306                      (15,458)              (15,458)
      Retained earnings                          77,884                64,611
      Unearned compensation                      (3,910)               (4,685)
      Treasury stock, at cost (951,485
           shares in 2005)                      (25,785)                   --
         TOTAL STOCKHOLDERS' EQUITY             217,418               226,936
           TOTAL LIABILITIES AND
             STOCKHOLDERS' EQUITY              $401,520              $410,845



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

                                                         Six Months Ended
                                                             June 30,
                                                     2005                2004

    Cash flows from operating
      activities:
     Net income                                   $13,273              $6,772
     Adjustments to reconcile net
       income to net cash provided
      by operating activities:
        Depreciation and amortization of
          property and equipment                    5,154               5,812
        Deferred taxes                              8,150               4,735
        Compensation expense related to
          restricted stock                          1,061               1,044
        Gain on sale of assets                        (18)               (162)
        Other assets                                  461                 697
        Changes in working capital:
          Restricted investments                     (885)                 --
          Accounts receivable, net                 (5,110)             (1,547)
          Prepaid expenses and other
            current assets                          1,620                (101)
          Accounts payable                          2,939              (4,814)
          Accrued expenses                         (6,681)              1,667
            Net cash provided by operating
              activities                           19,964              14,103

    Cash flows from investing
      activities:
        Purchases of property and
          equipment, net                           (2,034)             (1,682)
        Net cash used in investing
           activities                              (2,034)             (1,682)

    Cash flows from financing
      activities:
        Proceeds from stock options
          exercised                                 2,794               3,359
        Purchase of treasury stock                (30,558)             (2,767)
        Net payments on revolver                      --               (6,000)
        Payments of long term debt                    --               (7,013)
          Net cash used in financing
            activities                            (27,764)            (12,421)

    Net decrease in cash and cash
      equivalents                                  (9,834)                --
    Cash and cash equivalents beginning
      of period                                    16,806                 --
    Cash and cash equivalents end of
      period                                       $6,972                $--


    Supplemental disclosures of cash
      flow information

       Cash paid for:

         Interest                                     $--              $2,630
         Income taxes                               $1,066               $368



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


                                      First          Second
                                     Quarter         Quarter           YTD
                                      2005            2005             2005

    Intermodal                      $233,662        $259,260         $492,922
    Brokerage                         60,154          68,038          128,192
    Logistics                         35,589          34,524           70,113
    Total Core                       329,405         361,822          691,227

    HGDS                              10,453           9,808           20,261

    Consolidated                    $339,858        $371,630         $711,488



                                      First          Second
                                     Quarter         Quarter           YTD
                                      2004            2004             2004

    Intermodal                      $236,321        $247,940         $484,261
    Brokerage                         50,960          56,778          107,738
    Logistics                         33,913          33,786           67,699
    Total Core                       321,194         338,504          659,698

    HGDS                               7,108          10,467           17,575

    Consolidated                    $328,302        $348,971         $677,273


    NOTE:  HGDS transferred its Pharmaceutical business to Logistics in August
           2004, resulting in an increase in Logistics revenue of $4,331 and
           $3,384 for the quarters ending March 31, 2005 and June 30, 2005,
           respectively.

SOURCE Hub Group, Inc.

Amy Lisek of Hub Group, Inc., +1-630-795-2214
http://www.prnewswire.com