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AEI Announces Fourth Quarter Outlook

DARIEN, CT USA (January 11, 1999) -- AEI announced today that it expects 1998 fourth quarter earnings and revenues to be below comparable 1997 fourth-quarter levels.

AEI estimates that its 1998 fourth quarter net income, excluding one-time items, will be about 20-25 percent below the same quarter of 1997. As a result, the Company estimates that per-share earnings from operations for the quarter, excluding one-time items, will be in the range of $.28 to $.31 per share. In the fourth quarter of 1997, AEI reported $.38 per share from operations and $.41 per share in total, which includes a $.03 per share one-time gain from the sale of a foreign affiliate. Revenues for fourth quarter 1998 are expected to be approximately six percent lower than the 1997 fourth quarter. For the full year 1998, the Company estimates net income, excluding one-time items, will be approximately five percent below 1997, while 1998 revenues will be approximately three percent lower.

The unfavorable fourth quarter income decline is primarily a result of an unexpected further deterioration of airfreight export revenues for the United States and the United Kingdom. Lower airfreight revenues in Singapore have also contributed to the decline. AEI's ocean freight, customs brokerage, and warehouse and distribution activities are expected to record good growth and satisfactory results for both the fourth quarter and the year 1998.

In addition, in the 1998 fourth quarter, AEI will record a non-recurring charge of $3.6 million, or $.06 per share, after tax in connection with the successful negotiation with a major customer of a long-term contract in which AEI retroactively granted volume discounts for shipments in the first half of 1998.

Guenter Rohrmann, AEI's President and Chief Executive Officer, commented, "While we are disappointed with these results, it gives us comfort to know that AEI's problems can be isolated to three distinct geographical areas in the airfreight segment of our business. Moreover, we can state that AEI, in these areas, has not lost any significant customers and that these airfreight revenue declines are primarily externally related."

Rohrmann further stated, "All other countries in our global network are generally performing well in their airfreight activities. Our ocean, customs brokerage and warehouse and distribution businesses are also doing well worldwide. We anticipate a gradual improvement in the U.S. and U.K. airfreight revenues during this year."

Headquartered in Darien, CT, AEI is a world leader in integrated logistics services, delivering multi-modal transportation, warehousing and distribution, customs brokerage and information management solutions across a network of 711 locations in 135 countries.

This press release contains forward-looking statements. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those anticipated; among these are the Company's dependence upon conditions in the air and ocean freight forwarding industry, the size and resources of many of the Company's competitors and the need for the Company to continue to effectively integrate acquired businesses and successfully deliver its primary services. Additional information with respect to these and other factors which could materially affect the Company is included in the Company's filings with the Securities and Exchange Commission, including its most recent proxy statement and 10-K.

For further information please contact:
Jay Jacobson
Investor Relations
Tel:(203)655-6978
exojxj@aeilogis.com