Press Release

Hub Group, Inc. Reports Record First Quarter 2005 Earnings

DOWNERS GROVE, Ill., April 20, 2005 /PRNewswire-FirstCall via COMTEX/ -- Hub Group, Inc. (Nasdaq: HUBG) today reported record net income for the quarter ended March 31, 2005 of $5.3 million. This represents a 97% increase in first quarter net income versus the first quarter of 2004. Hub Group's diluted earnings per share of $0.51 for the quarter ended March 31, 2005 represents an increase of 55% compared to last year's first quarter diluted earnings per share of $0.33 on 28% higher average diluted shares outstanding in the 2005 period. Costs and expenses decreased 3.9% in the first quarter of 2005 to $34.1 million compared to $35.5 million in the first quarter of 2004, reflecting the benefits from the Company's improved operating efficiencies and cost reduction efforts. Interest expense decreased from $1.7 million in first quarter 2004 to $0.2 million in 2005 due to the extinguishment of debt in the third quarter of 2004.

Hub's revenue grew by 3.5% to $339.9 million as compared to $328.3 million in the first quarter of 2004. First quarter intermodal revenue decreased 1.1% to $233.7 million. Truckload brokerage revenue increased 18.0% to $60.1 million this quarter. First quarter logistics revenue increased 4.9% to $35.6 million. Hub Group Distribution Services revenue increased 47.1% to $10.5 million in the first quarter of 2005.

Commenting on the results, David P. Yeager, Vice-Chairman and Chief Executive Officer of Hub Group, stated, "Our operating efficiencies resulted in increased margin and reduced costs producing record first quarter results. While we are pleased with these results, we remain committed to focusing on profitable revenue growth."

STOCK SPLIT

As previously announced, in February 2005, the Board of Directors approved a 2 for 1 stock split. The Board has set May 4, 2005 as the record date for this stock split and May 11, 2005 as the payment date, contingent on receiving shareholder approval, at its annual meeting on May 4, 2005, to increase the number of authorized shares of Class A common stock. If approved by Hub's shareholders, the stock split will be in the form of a stock dividend, which will be tax-free to shareholders.

FULL YEAR 2005

Given the current operating environment, we are comfortable that the earnings for 2005 will be within the analysts' range of $2.58 to $2.67 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, April 21, 2005 to discuss its first 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) 591-6942. The conference call participant code is 63789436. 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 and 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. Hub Group assumes no liability to update any such forward-looking statements.

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

                                                        Three Months
                                                        Ended March 31,
                                                   2005               2004

    Revenue                                      $339,858           $328,302

    Transportation costs                          296,613            286,498
      Gross margin                                 43,245             41,804

    Costs and expenses:
      Salaries and benefits                        21,875             22,342
      General and administrative                    9,752             10,281
      Depreciation and amortization of
       property and equipment                       2,483              2,884
        Total costs and expenses                   34,110             35,507

         Operating income                           9,135              6,297

    Other income (expense):
      Interest expense                               (207)            (1,713)
      Interest income                                 200                 53
      Other, net                                       14                 41
        Total other income (expense)                    7             (1,619)

    Income before provision for income
     taxes                                          9,142              4,678

    Provision for income taxes                      3,794              1,965

    Net income                                     $5,348             $2,713


    Basic earnings per common share                 $0.53              $0.35

    Diluted earnings per common share               $0.51              $0.33

    Basic weighted average number of
     shares outstanding                            10,141              7,746

    Diluted weighted average number of
     shares outstanding                            10,579              8,294



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

                                                 March 31,        December 31,
                                                   2005                2004
                                                (Unaudited)
    ASSETS
     CURRENT ASSETS:
       Cash and cash equivalents                  $15,570             $16,806
       Restricted investments                         661                 -
       Accounts receivable
         Trade, net                               139,113             141,079
         Other                                      7,527               7,996
       Deferred taxes                               4,412               4,667
       Prepaid expenses and other
        current assets                              3,715               4,746
           TOTAL CURRENT ASSETS                   170,998             175,294

     PROPERTY AND EQUIPMENT, net                   17,854              19,487
     GOODWILL, net                                215,175             215,175
     OTHER ASSETS                                     371                 889
             TOTAL ASSETS                        $404,398            $410,845


    LIABILITIES AND STOCKHOLDERS'
     EQUITY
      CURRENT LIABILITIES:
        Accounts payable
         Trade                                   $115,250            $115,819
         Other                                      2,925               1,660
        Accrued expenses
         Payroll                                   10,262              19,542
         Other                                     12,031              15,100
           TOTAL CURRENT LIABILITIES              140,468             152,121

      DEFERRED TAXES                               31,545              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;
           12,337,700 shares authorized;
           9,809,476 shares issued and
           9,727,917 outstanding in
           2005; 9,635,657 issued and
           outstanding in 2004                         98                  96
          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                187,068             182,365
        Purchase price in excess of
         predecessor basis, net of tax
         benefit of $10,306                       (15,458)            (15,458)
        Retained earnings                          69,959              64,611
        Unearned compensation                      (4,137)             (4,685)
        Treasury stock, at cost (81,559
         shares in 2005)                           (5,152)                -
          TOTAL STOCKHOLDERS' EQUITY              232,385             226,936
            TOTAL LIABILITIES AND
             STOCKHOLDERS' EQUITY                $404,398            $410,845



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

                                                      Three Months Ended
                                                            March 31,
                                                     2005               2004

    Cash flows from operating
     activities:
      Net income                                    $5,348             $2,713
      Adjustments to reconcile net
       income to net cash provided
       by operating activities:
        Depreciation and amortization of
         property and equipment                      2,593              2,911
        Deferred taxes                               3,008              1,961
        Compensation expense related to
         restricted stock                              520                404
        Gain on sale of assets                         (12)               (18)
        Other assets                                   518                188
        Changes in working capital:
          Restricted investments                      (661)               -
          Accounts receivable, net                   2,435              3,466
          Prepaid expenses and other
           current assets                            1,031                462
          Accounts payable                             696             (1,867)
          Accrued expenses                         (12,349)            (4,072)
            Net cash provided by operating
             activities                              3,127              6,148

    Cash flows from investing
     activities:
      Purchases of property and
       equipment, net                                 (948)              (460)
        Net cash used in investing
         activities                                   (948)              (460)

    Cash flows from financing
     activities:
      Proceeds from stock options
       exercised                                     2,184              2,090
      Purchase of treasury stock                    (5,599)            (2,767)
      Net payments on revolver                         -               (3,000)
      Payments of long term debt                       -               (2,011)
        Net cash used in financing
         activities                                 (3,415)            (5,688)

    Net decrease in cash and cash
     equivalents                                    (1,236)               -
    Cash and cash equivalents beginning
     of period                                      16,806                -
    Cash and cash equivalents end of
     period                                        $15,570               $-


    Supplemental disclosures of cash
     flow information
      Cash paid for:
        Interest                                      $-               $1,357
        Income taxes                                  $333               $-



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

                           First    Second    Third     Fourth
                          Quarter   Quarter   Quarter   Quarter     Total
                            2004      2004      2004      2004       2004

    Intermodal            $236,321  $247,940  $259,958  $270,314  $1,014,533
    Brokerage               50,960    56,778    56,124    61,604     225,466
    Logistics               33,913    33,786    34,028    38,996     140,723
    Total Core             321,194   338,504   350,110   370,914   1,380,722

    HGDS                     7,108    10,467    11,995    16,514      46,084

    Consolidated          $328,302  $348,971  $362,105  $387,428  $1,426,806

         NOTE:     HGDS transferred its Pharmaceutical business to Logistics
                   in August 2004, resulting in an increase in Logistics
                   revenue of $4,315 for the year ended December 31, 2004.

SOURCE Hub Group, Inc.

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