USPS renews contract with ATSG for out-sourced sort facilities

WILMINGTON, OH – September 24, 2012 – Air Transport Services Group, Inc. (NASDAQ:ATSG) said today that its contracts to manage three U.S. Postal Service sort facilities in Indianapolis, Dallas and Memphis have been renewed for two more years.

Under the new agreements with ATSG business unit LGSTX Distribution Services, Inc., the Postal Service pays LGSTX a fixed amount, plus additional amounts based on the volume of mail handled. ATSG has managed the Indianapolis center since 2004 and the Memphis and Dallas facilities since 2006. Combined annual revenues from all three agreements are expected to be approximately $24 million, an increase of about 10 percent from last year.

Gary Stover, president of LGSTX, said, “Our 30 years of experience in managing hub operations for Airborne, Inc. and DHL have allowed us to develop excellent work processes, reporting systems and contingency planning. We are pleased to extend our business relationship with the Postal Service into 2014, and hope to find additional ways to support them in the future.”