Press Release

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

DOWNERS GROVE, Ill., Oct 19, 2005 /PRNewswire-FirstCall via COMTEX News Network/ -- Hub Group, Inc. (Nasdaq: HUBG) today reported record net income for the quarter ended September 30, 2005 of $9.6 million. This represents a 23% increase versus third quarter 2004 adjusted net income. The 2004 adjustment excludes early debt extinguishment costs. Hub Group's diluted earnings per share for the quarter ended September 30, 2005 is $0.47. This represents an increase of 24% compared to adjusted diluted earnings per share for the quarter ended September 30, 2004 of $0.38.

On an as-reported basis, net income for the third quarter of 2005 increased to $9.6 million from $3.6 million in the same quarter last year. As reported diluted earnings per share increased to $0.47 compared to $0.17 during last year's third quarter.

Hub's revenue grew by 10.3% to $399.4 million compared to $362.1 million in the third quarter of 2004. Third quarter intermodal revenue increased 9.0% to $283.5 million. Truckload brokerage revenue increased 21.7% to $68.3 million this quarter. Third quarter logistics revenue increased 4.8% to $35.7 million. Hub Group Distribution Services revenue decreased 0.3% to $12.0 million in the third quarter of 2005.

Costs and expenses decreased 1.1% in the third quarter of 2005 to $33.7 million compared to $34.1 million in the third quarter of 2004, reflecting the benefits from the Company's improved operating efficiencies and cost containment programs. Other income increased to $0.4 million in 2005 from an expense of $7.6 million in 2004 due primarily to expenses associated with the extinguishment of the private placement debt during the third quarter of 2004.

FULL YEAR 2005

Given the current operating environment, we are comfortable that the earnings for 2005 will be within the analysts' range of $1.45 to $1.53 per diluted share.

A tabular reconciliation of the differences between the adjusted financial results for the three-month period ended September 30, 2004 and the Company's financial results determined in accordance with generally accepted accounting principles in the United States of America ("GAAP") is contained in the summary financial statements attached to this press release.

All share and per share amounts have been adjusted to give retroactive effect to the stock split which occurred in the second quarter of 2005. Certain prior year amounts have been reclassified to conform to the current year presentation.

CONFERENCE CALL

Hub will hold a conference call at 5:00 p.m. Eastern Time (4:00 p.m. Central Time) on Wednesday, October 19, 2005 to discuss its third 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 Investors 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 (866) 271-6130. The conference call participant code is 13601626. 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 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 periods ended March 31, 2005 and June 30. 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          Nine Months
                                    Ended September 30    Ended September 30
                                      2005      2004       2005        2004

    Revenue                        $399,400  $362,105  $1,110,888  $1,039,377

    Transportation costs            350,273   314,077     971,607     905,881
     Gross margin                    49,127    48,028     139,281     133,496

    Costs and expenses:
     Salaries and benefits           22,242    21,995      65,621      66,570
     General and administrative       9,052     9,023      28,294      29,618
     Depreciation and amortization
      of property and equipment       2,401     3,052       7,337       8,786
      Total costs and expenses       33,695    34,070     101,252     104,974

       Operating income              15,432    13,958      38,029      28,522

    Other income (expense):
     Interest expense                  (145)     (571)       (492)     (3,968)
     Interest income                    217        56         601         165
     Debt extinguishment expenses       -      (7,296)        -        (7,296)
     Other, net                         357       180         411         583
      Total other income (expense)      429    (7,631)        520     (10,516)

    Income before provision for
     income taxes                    15,861     6,327      38,549      18,006

    Provision for income taxes        6,251     2,775      15,666       7,682

    Net income                       $9,610    $3,552     $22,883     $10,324


    Basic earnings per common
     share                            $0.49     $0.18       $1.15       $0.61

    Diluted earnings per common
     share                            $0.47     $0.17       $1.10       $0.57

    Basic weighted average number
     of shares outstanding           19,640    19,414      19,966      16,870

    Diluted weighted average
     number of shares outstanding    20,406    20,648      20,786      18,058


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


                                              September 30,       December 31,
                                                   2005                2004
                                               (Unaudited)
    ASSETS
     CURRENT ASSETS:
      Cash and cash equivalents                   $26,847             $16,806
      Restricted investments                        1,173                 -
      Accounts receivable
       Trade, net                                 159,602             140,762
       Other                                        8,266               8,313
      Deferred taxes                                4,514               4,667
      Prepaid expenses and other current assets     4,327               4,746
        TOTAL CURRENT ASSETS                      204,729             175,294

     PROPERTY AND EQUIPMENT, net                   15,029              19,487
     GOODWILL, net                                215,175             215,175
     OTHER ASSETS                                     354                 889
         TOTAL ASSETS                            $435,287            $410,845


    LIABILITIES AND STOCKHOLDERS' EQUITY
     CURRENT LIABILITIES:
      Accounts payable
       Trade                                     $130,053            $115,819
       Other                                        4,439               1,660
      Accrued expenses
       Payroll                                     16,886              19,542
       Other                                       16,596              15,100
        TOTAL CURRENT LIABILITIES                 167,974             152,121

     DEFERRED TAXES                                36,566              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
        and 19,538,478 shares
        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                  182,003             182,262
      Purchase price in excess of
       predecessor basis, net of tax
       benefit of $10,306                         (15,458)            (15,458)
      Retained earnings                            87,494              64,611
      Unearned compensation                        (3,375)             (4,685)
      Treasury stock, at cost (742,770
       shares in 2005)                            (20,127)                -
       TOTAL STOCKHOLDERS' EQUITY                 230,747             226,936
        TOTAL LIABILITIES AND
         STOCKHOLDERS' EQUITY                    $435,287            $410,845


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

                                                       Nine Months Ended
                                                         September 30,
                                                    2005               2004

    Cash flows from operating activities:
     Net income                                   $22,883            $10,324
     Adjustments to reconcile net
      income to net cash provided
      by operating activities:
       Depreciation and amortization of
        property and equipment                      7,633              8,966
       Deferred taxes                              10,523              7,535
       Compensation expense related to
        restricted stock                            1,603              1,593
       Gain on sale of assets                        (271)              (248)
       Other assets                                   -                  696
       Changes in working capital:
        Restricted investments                     (1,173)               -
        Accounts receivable, net                  (18,793)            (5,273)
        Prepaid expenses and other
         current assets                               419                219
        Other, net                                    535                -
        Accounts payable                           17,013             (6,731)
        Accrued expenses                           (1,160)             3,756
         Net cash provided by operating
          activities                               39,212             20,837

    Cash flows from investing activities:
     Proceeds from sale of property and equipment     573                261
     Purchases of property and equipment           (3,477)            (2,668)
        Net cash used in investing activities      (2,904)            (2,407)

    Cash flows from financing activities:
     Proceeds from stock offering, net                -               55,871
     Proceeds from stock options exercised          4,304              3,500
     Purchase of treasury stock                   (30,571)            (2,767)
     Net payments on revolver                         -               (6,000)
     Payments of long term debt                       -              (69,034)
        Net cash used in financing activities     (26,267)           (18,430)

    Net decrease in cash and cash
     equivalents                                   10,041                -
    Cash and cash equivalents beginning
     of period                                     16,806                -
    Cash and cash equivalents end of period       $26,847               $-


    Supplemental disclosures of cash
     flow information
      Cash paid for:
       Interest                                      $909             $2,995
       Income taxes                                $3,310               $477


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


                                       First     Second    Third
                                      Quarter   Quarter   Quarter      YTD
                                        2005      2005      2005       2005

    Intermodal                       $233,662  $259,260  $283,476    $776,398
    Brokerage                          60,154    68,038    68,283     196,475
    Logistics                          35,589    34,524    35,676     105,789
    Total Core                        329,405   361,822   387,435   1,078,662

    HGDS                               10,453     9,808    11,965      32,226

    Consolidated                     $339,858  $371,630  $399,400  $1,110,888



                                       First     Second    Third
                                      Quarter   Quarter   Quarter      YTD
                                        2004      2004      2004       2004

    Intermodal                       $236,321  $247,940  $259,958    $744,219
    Brokerage                          50,960    56,778    56,124     163,862
    Logistics                          33,913    33,786    34,028     101,727
    Total Core                        321,194   338,504   350,110   1,009,808

    HGDS                                7,108    10,466    11,995      29,569

    Consolidated                     $328,302  $348,970  $362,105  $1,039,377



          NOTE:       HGDS transferred its Pharmaceutical business to
                      Logistics in August 2004, resulting in an increase in
                      Logistics revenue of $4,331 in first quarter 2005,
                      $3,384 in second quarter 2005 and $484 in third quarter
                      2005.



                               HUB GROUP, INC.
   RECONCILIATION OF AS REPORTED FINANCIAL RESULTS TO AS ADJUSTED FINANCIAL
                                   RESULTS
                   (in thousands, except per share amounts)


                                     Three Months Ended September 30, 2004
                                  As Reported     Adjustments    As Adjusted

    Operating Income                $13,958              $-       $13,958
    Interest expense                   (571)              -          (571)
    Interest income                      56               -            56
    Debt extinguishment expenses     (7,296)         (7,296) a          -
    Other, net                          180               -           180

    Income before provision for
     income taxes                     6,327          (7,296)       13,623

    Provision for income taxes        2,775          (3,064) b      5,839

    Net Income                       $3,552         $(4,232)       $7,784

    Basic earnings per common
     share                            $0.18          $(0.22)        $0.40
    Diluted earnings per common
     share                            $0.17          $(0.21)        $0.38

    Basic weighted average number
     of shares outstanding           19,414          19,414        19,414
    Diluted weighted average number
     of shares outstanding           20,648          20,648        20,648



    a) Fees and expenses related to our early extinguishment of 9.14% debt
          1) Pre-payment penalty of $6,804
          2) Write-off of related deferred financing costs of $492


    b) Income taxes at 42.0%

             Note: The purpose of this statement is to reflect as adjusted
             earnings excluding the one time costs associated with prepaying
             our debt.

SOURCE Hub Group, Inc.

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