Press Release

Hub Group, Inc. Reports Record Second Quarter 2007 Revenue and Earnings
DOWNERS GROVE, Ill., July 19, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Hub Group, Inc. (Nasdaq: HUBG) today reported record income from continuing operations for the quarter ended June 30, 2007 of $13.8 million, a 13% increase versus income from continuing operations for the second quarter of 2006. Hub Group's diluted earnings per share from continuing operations was $0.35 for the second quarter of 2007. This represents an increase of 21% compared to last year's second quarter diluted earnings per share from continuing operations of $0.29. Hub Group's operating margin increased to 5.5% in 2007 from 5.0% in 2006 due to yield enhancement efforts and improved operational efficiencies including in-house drayage.

Hub Group's revenue increased 1.6% to $401.6 million compared to $395.3 million in the second quarter of 2006. Second quarter intermodal revenue increased 5.2% to $300.9 million. Truck brokerage revenue decreased 6.3% to $73.2 million this quarter. Second quarter logistics revenue decreased 12.2% to $27.5 million. Gross margin from continuing operations increased 4.1% to $57.8 million compared to the second quarter of 2006.

FULL YEAR 2007

Given the current operating environment, we are comfortable that the earnings for 2007 will be within the current analysts' range of $1.36 to $1.46 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 19, 2007 to discuss its second quarter results.

Hosting the conference call will be David P. Yeager, Vice-Chairman and Chief Executive Officer and Terri A. Pizzuto, Executive 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.earnings.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) 299-0433. The conference call participant code is 41587483. 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, 2006 and the report on Form 10-Q for the period ended March 31, 2007. 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,
                                          2007      2006      2007      2006
    Revenue                            $401,565  $395,296  $794,862  $752,060

    Transportation costs                343,802   339,805   680,438   649,196
      Gross margin                       57,763    55,491   114,424   102,864

    Costs and expenses:
      Salaries and benefits              24,177    24,425    49,787    47,306
      General and administrative         10,218     9,726    21,819    18,695
      Depreciation and amortization       1,203     1,528     2,375     3,387
        Total costs and expenses         35,598    35,679    73,981    69,388

          Operating income               22,165    19,812    40,443    33,476

    Other income (expense):
      Interest expense                      (24)      (25)      (45)      (43)
      Interest income                       611       552     1,256       998
      Other, net                             55        26        58        56
        Total other income                  642       553     1,269     1,011

    Income from continuing operations
      before provision for income taxes  22,807    20,365    41,712    34,487

    Provision for income taxes            9,032     8,146    16,518    13,795

    Income from continuing operations    13,775    12,219    25,194    20,692

    Discontinued operations:
        Income from discontinued
         operations of HGDS                 -         540       -       1,634
        Provision for income taxes          -         216       -         653
    Income from discontinued operations     -         324       -         981

    Net income                          $13,775   $12,543   $25,194   $21,673

    Basic earnings per common share
      Income from continuing operations   $0.35     $0.30     $0.64     $0.51
      Income from discontinued
       operations                           -        0.01       -        0.03
      Net income                          $0.35     $0.31     $0.64     $0.54

    Diluted earnings per common share
      Income from continuing operations   $0.35     $0.29     $0.64     $0.50
      Income from discontinued
       operations                           -        0.01       -        0.02
      Net income                          $0.35     $0.30     $0.64     $0.52

    Basic weighted average number of
     shares outstanding                  39,043    40,768    39,150    40,482
    Diluted weighted average number of
     shares outstanding                  39,538    41,607    39,652    41,455



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

                                                 June 30,         December 31,
                                                   2007               2006
                                               (Unaudited)
    ASSETS
     CURRENT ASSETS:
      Cash and cash equivalents                   $52,380             $43,491
      Accounts receivable
       Trade, net                                 154,254             158,284
       Other                                       10,732               8,369
      Prepaid taxes                                    86               2,119
      Deferred taxes                                3,667               3,433
      Prepaid expenses and other current assets     4,795               4,450
        TOTAL CURRENT ASSETS                      225,914             220,146

     Restricted investments                         4,803               3,017
     Property and equipment, net                   30,511              26,974
     Other intangibles, net                         7,279               7,502
     Goodwill, net                                225,448             225,448
     Other assets                                   1,457               1,461
         TOTAL ASSETS                            $495,412            $484,548

    LIABILITIES AND STOCKHOLDERS' EQUITY
     CURRENT LIABILITIES:
      Accounts payable
       Trade                                     $112,933            $117,676
       Other                                        6,035               6,839
      Accrued expenses
       Payroll                                     11,855              18,294
       Other                                       34,041              26,617
      Related party payable                           -                 5,000
        TOTAL CURRENT LIABILITIES                 164,864             174,426
     Non-current liabilities                       12,934               7,691
     Deferred taxes                                41,792              43,587
     STOCKHOLDERS' EQUITY:
      Preferred stock, $.01 par value; 2,000,000
       shares authorized; no shares issued or
       outstanding in 2007 and 2006                   -                   -
      Common stock
       Class A: $.01 par value; 97,337,700 shares
        authorized in 2007; 41,224,792 shares
        issued and 38,827,937 outstanding in 2007;
        47,337,700 shares authorized in 2006
        41,224,792 shares issued and 38,943,122
        outstanding in 2006                           412                 412
       Class B:  $.01 par value; 662,300 shares
        authorized; 662,296 shares issued and
         outstanding in 2007 and 2006                   7                   7
      Additional paid-in capital                  176,830             179,203
      Purchase price in excess of predecessor
       basis, net of tax benefit of $10,306       (15,458)            (15,458)
      Retained earnings                           171,437             146,243
      Treasury stock; at cost, 2,396,855 shares
       in 2007 and 2,281,670 shares in 2006       (57,406)            (51,563)
       TOTAL STOCKHOLDERS' EQUITY                 275,822             258,844
         TOTAL LIABILITIES AND
          STOCKHOLDERS' EQUITY                   $495,412            $484,548



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

                                                       Six Months Ended
                                                           June 30,
                                                    2007               2006
    Cash flows from operating activities:
     Income from continuing operations            $25,194            $20,692
     Adjustments to reconcile income from
      continuing operations to net cash
      provided by operating activities:
       Depreciation and amortization                3,706              4,233
       Deferred taxes                               3,034                296
       Compensation expense related to
        share-based compensation plans              1,923              1,708
       (Gain) loss on sale of assets                 (117)                12
     Changes in operating assets and liabilities
      excluding effects of  purchase transaction:
       Restricted investments                      (1,786)              (849)
       Accounts receivable, net                     1,667             11,179
       Prepaid taxes                                2,033              4,962
       Prepaid expenses and other
        current assets                               (345)            (1,340)
       Other assets                                     4                239
       Accounts payable                            (5,547)            (4,148)
       Accrued expenses                               985             (2,552)
       Non-current liabilities                        180                -
         Net cash provided by operating
          activities                               30,931             34,432

    Cash flows from investing activities:
     Proceeds from sale of equipment                  550                179
     Purchases of property and equipment           (7,453)            (2,364)
     Cash used in acquisition of Comtrak, Inc.     (5,000)           (39,883)
     Proceeds from disposal of
      discontinued operations                         -               12,203
        Net cash used in investing
         activities                               (11,903)           (29,865)

    Cash flows from financing activities:
     Proceeds from stock options exercised            329              1,905
     Purchase of treasury stock                   (12,898)              (173)
     Excess tax benefits from share-based
      compensation                                  2,430              7,797
        Net cash (used in) provided by
         financing activities                     (10,139)             9,529

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

    Net increase in cash and cash equivalents       8,889             15,906
    Cash and cash equivalents beginning
     of period                                     43,491             36,133
    Cash and cash equivalents end of period       $52,380            $52,039


SOURCE Hub Group, Inc.

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