Press Release

Hub Group, Inc. Reports Record Second Quarter 2006 Revenue and Earnings

DOWNERS GROVE, Ill., July 20, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Hub Group, Inc. (Nasdaq: HUBG) today reported record income from continuing operations for the quarter ended June 30, 2006 of $12.2 million. This represents a 69% increase in second quarter income versus the second quarter of 2005. Hub Group's diluted earnings per share from continuing operations was $0.29 for the second quarter 2006. This represents an increase of 71% compared to last year's second quarter of $0.17. Hub Group's operating margin increased to 5.0% in 2006 from 3.4% in 2005 due to yield enhancement efforts, growth in truck brokerage, an increase in drayage and leveraging our operations with a stable cost platform.

Hub Group's revenue grew by 9.2% to $395.3 million compared to $361.8 million in the second quarter of 2005. Second quarter intermodal revenue increased 10.2% to $285.8 million, which includes the addition of Comtrak for the entire quarter. Truck brokerage revenue increased 14.9% to $78.1 million this quarter. Second quarter logistics revenue decreased 9.4% to $31.4 million.

On May 1, 2006, Hub Group, Inc. closed on the sale of Hub Group Distribution Services (HGDS) for $12.2 million. The comparative results of HGDS have been reported as "discontinued operations" in Hub Group's Consolidated Financial Statements. These discontinued operations generated $0.01 of diluted earnings per share in the second quarter of 2006 and $0.02 of diluted earnings per share 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 very pleased with the quarter. Our focus on yield management and our strategic initiatives continue 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 June 6, 2006. Accordingly, all share and per share amounts have been adjusted to give retroactive effect to the stock split.

FULL YEAR 2006

Given the current operating environment, the Company is comfortable that the earnings from continuing operations for 2006 will be within the analysts' range of $0.98 to $1.05 per diluted share.

CONFERENCE CALL

Hub will hold a conference call at 5:00 p.m. Eastern Time (4:00 p.m. Central Time) on Thursday, July 20, 2006 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 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) 510-0707. The conference call participant code is 39285337. The call will be limited to 60 minutes, including questions and answers.

An audio replay will be available through the Investor 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, 2005 and our report on Form 10-Q for the quarter ended March 31, 2006. 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         Six Months
                                       Ended June 30,      Ended June 30,
                                       2006      2005      2006      2005
    Revenue                          $395,253  $361,822  $751,999  $691,227

    Transportation costs              339,805   318,002   649,196   607,299
     Gross margin                      55,448    43,820   102,803    83,928

    Costs and expenses:
     Salaries and benefits             24,286    20,281    47,140    40,891
     General and administrative         9,740     9,012    18,683    18,238
     Depreciation and amortization      1,528     2,252     3,387     4,474
      Total costs and expenses         35,554    31,545    69,210    63,603

       Operating income                19,894    12,275    33,593    20,325

    Other income (expense):
     Interest expense                    (136)     (140)     (264)     (347)
     Interest income                      552       183       998       383
     Other, net                            55        40       160        54
      Total other income                  471        83       894        90

    Income from continuing
     operations before provision
     for income taxes                  20,365    12,358    34,487    20,415

    Provision for income taxes          8,146     5,129    13,795     8,473

    Income from continuing
     operations                        12,219     7,229    20,692    11,942

    Discontinued operations:
    Income from discontinued
     operations of HGDS (including
     loss on disposal of $70)             540     1,189     1,634     2,274
    Provision for income taxes            216       493       653       943
    Income from discontinued
     operations                           324       696       981     1,331


    Net income                        $12,543    $7,925   $21,673   $13,273

    Basic earnings per common share
      Income from continuing
       operations                       $0.30     $0.18     $0.51     $0.30
      Income from discontinued
       operations                        0.01      0.02      0.03      0.03
      Net income                        $0.31     $0.20     $0.54     $0.33

    Diluted earnings per common share
      Income from continuing
       operations                       $0.29     $0.17     $0.50     $0.29
      Income from discontinued
       operations                        0.01      0.02      0.02      0.03
      Net income                        $0.30     $0.19     $0.52     $0.32

    Basic weighted average number of
     shares outstanding                40,768    39,954    40,482    40,260
    Diluted weighted average number
     of shares outstanding             41,607    41,592    41,455    41,954



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


                                                 June 30,         December 31,
                                                   2006                2005
                                               (Unaudited)
    ASSETS
     CURRENT ASSETS:
      Cash and cash equivalents                   $52,039             $36,133
      Restricted investments                        2,236               1,387
      Accounts receivable
       Trade, net                                 143,725             147,004
       Other                                       12,044              10,603
      Prepaid taxes                                   474               6,040
      Deferred taxes                                1,534                 -
      Prepaid expenses and other current assets     5,493               3,860
      Assets of discontinued operations               -                17,855
        TOTAL CURRENT ASSETS                      217,545             222,882

     Property and equipment, net                   24,381              12,767
     Other intangibles, net                         7,725                 -
     Goodwill, net                                220,488             208,150
     Other assets                                     384                 619
         TOTAL ASSETS                            $470,523            $444,418


    LIABILITIES AND STOCKHOLDERS' EQUITY
     CURRENT LIABILITIES:
      Accounts payable
       Trade                                     $109,917            $114,094
       Other                                        6,233               3,668
      Accrued expenses
       Payroll                                     16,020              20,909
       Other                                       22,074              18,917
      Deferred taxes                                  -                   960
      Liabilities of discontinued operations          -                 5,341
        TOTAL CURRENT LIABILITIES                 154,244             163,889

     DEFERRED TAXES                                41,294              38,454
     STOCKHOLDERS' EQUITY:
      Preferred stock, $.01 par value,
       2,000,000 shares authorized;
       no shares issued or outstanding
       in 2006 and 2005                               -                   -
      Common stock
       Class A: $.01 par value; 47,337,700 shares
        authorized; 41,224,792 shares issued and
        41,040,324 outstanding in 2006;
        41,224,792 shares issued and 39,962,484
        outstanding in 2005                           412                 412
       Class B:  $.01 par value; 662,300 shares
        authorized; 662,296 shares issued and
        outstanding in 2006 and 2005                    7                   7
      Additional paid-in capital                  173,360             183,524
      Purchase price in excess of predecessor
       basis, net of tax benefit of $10,306       (15,458)            (15,458)
      Retained earnings                           119,230              97,557
      Unearned compensation                           -                (6,259)
      Treasury stock, at cost (184,468 shares
       in 2006 and 1,262,308 shares in 2005)       (2,566)            (17,708)
       TOTAL STOCKHOLDERS' EQUITY                 274,985             242,075
             TOTAL LIABILITIES AND
              STOCKHOLDERS' EQUITY               $470,523            $444,418



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

                                                       Six Months Ended
                                                            June 30,
                                                    2006               2005
    Cash flows from operating activities:
     Income from continuing operations            $20,692            $11,942
     Adjustments to reconcile income
      from continuing operations to net cash
      provided by operating activities:
       Depreciation and amortization                4,233              4,693
       Deferred taxes                                 296              7,207
       Compensation expense related to
        share-based compensation plans              1,708              1,047
       Loss (Gain) on sale of assets                   12                (18)
       Other assets                                   239                459
       Changes in working capital excluding effects
        of purchase transaction:
         Restricted investments                      (849)              (885)
         Accounts receivable, net                  11,179             (9,594)
         Prepaid taxes                              4,962                -
         Prepaid expenses and other current assets (1,340)             1,571
         Accounts payable                          (4,148)             3,824
         Accrued expenses                          (2,552)            (6,251)
          Net cash provided by operating
           activities                              34,432             13,995

    Cash flows from investing activities:
     Proceeds from sale of equipment                  179                 40
     Purchases of property and equipment           (2,364)            (1,893)
     Cash used in acquisition of Comtrak, Inc.    (39,883)               -
     Proceeds from the disposal of
      discontinued operations                      12,203                -
        Net cash used in investing activities     (29,865)            (1,853)

    Cash flows from financing activities:
     Proceeds from stock options exercised          1,905              2,794
     Purchase of treasury stock                      (173)           (30,558)
     Excess tax benefits from share-based
      compensation                                  7,797                -
        Net cash provided by (used in)
         financing activities                       9,529            (27,764)

    Cash flows from operating activities of
     discontinued operations                        1,848              5,969
    Cash flows used in investing activities of
     discontinued operations                          (38)              (181)
        Net cash provided by discontinued
         operations                                 1,810              5,788


    Net increase (decrease) in cash and
     cash equivalents                              15,906             (9,834)
    Cash and cash equivalents beginning
     of period                                     36,133             16,806
    Cash and cash equivalents end of period       $52,039             $6,972

    Supplemental disclosures of cash
     flow information

     Cash paid for:

      Interest                                       $374               $907
      Income taxes                                   $744             $1,066

SOURCE Hub Group, Inc.

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