ABX Air 767 Freighter Makes First Revenue Flight

Freighter Conversion Joint Effort of Israel Aircraft Industries and ABX Air

WILMINGTON, OH- August 17, 2004 - Sporting a new look for ABX Air, the first Boeing 767-200 to be converted from a traditional passenger aircraft to a special freighter configuration made its first revenue flight from ABX Air headquarters in Wilmington, Ohio, to Fort Lauderdale, Fla.

The first 767-200 to complete the special freighter
conversion lands in Wilmington, Ohio, at ABX Air, Inc.

"Our customers and our employees are very excited about this aircraft," said Joe Hete, President and CEO of ABX Air. "It is the first of our 767s to have the traditional cargo door and ABX Air is the launch customer for this 767-200SF conversion."

The 767 is also the first in the fleet painted in the ABX Air livery.

As part of a bi-lateral agreement between the United States and Israel, Israel Air Industries (IAI) received joint approval from both the Civil Aviation Authority of Israel (CAAI) and from the FAA for the Supplemental Type Certificates (STCs) for the first-ever conversion of a Boeing 767-200 aircraft from a passenger configuration to a freighter with a cargo door.

According to Mary Arabi, Manager of Structures Engineering at ABX: "This project was the first validation program for the FAA under the new bi-lateral agreement with the CAAI. As such, both authorities reviewed many certification details and worked closely to resolve issues. The excellent teamwork between IAI and ABX on this very challenging project has produced a quality product that will satisfy our operational needs for the 767 freighter aircraft with a large cargo door."

Aircraft N797AX was the prototype for the design, engineering, development and production of the B767-200SF Special Freighter STC. This was the first of several aircraft industry-wide to have this after-market cargo door conversion. ABX Air will receive one 767 with this conversion in the fourth quarter of 2004 and one in the first quarter of 2005. Other airlines will be using this technology as well.

Taxiing in for the first time at ABX Air's headquarters in
Wilmington, Ohio, the first Boeing 767 to undergo the
B767-200SF conversion went into revenue service on
Tuesday, Aug. 17, 2004.

"The SF conversion accomplished at IAI was supported by engineering and parts production from the U.S., Israel, and China," said Jack Brewer, ABX Air Manager of Maintenance Contracts for 767 Aircraft. "When this collaborative effort came together at IAI, the workmanship during production resulted in an aircraft that returned from its maiden check flight with only minor issues. In all we are very happy with the quality of this product just out of modification at IAI."

"This high-quality, world-class first FAA-certified converted Boeing 767-200 to special freighter configuration sets the industry standard and is an example of an international integrated effort led and successfully accomplished by BEDEK Aviation Group of Israel Aircraft Industries," said David Arzi, IAI Corporate Vice President and General Manager of BEDEK Aviation.

The aircraft is now in regular service with the 24 other 767s, 74 DC-9s and 18 DC-8s operated by ABX Air.

ABX Air is a cargo airline with a fleet of 116 aircraft that operates out of Wilmington, Ohio, and 11 hubs throughout the United States. In addition to providing airlift capacity and sort facility staffing to DHL, ABX Air provides charter and maintenance services to a diverse group of customers. With over 7,000 employees, ABX is the largest employer in a several county area in southwestern Ohio.

Israel Aircraft Industries is the largest company in the aerospace industry in Israel, with approximately $23 billion in sales per year and 15,000 employees. Its BEDEK Aviation group is a full service provider for aircraft maintenance upgrading, modifications and is one of the worldwide leaders in cargo conversion programs. Among its customers are leading cargo operators and passenger airlines, lessors and original equipment manufacturers. Currently IAI's BEDEK Aviation Group has developed and holds various STCs for cargo conversions of Boeing 747-100/200, 737-300, 737-300 QC and 767-200 aircraft. Recently it launched its own 747-400 cargo conversion program and together with Boeing and ST Aero developed the STC for a 757-200, 15-pallet cargo conversion for various customers worldwide.

For more information, contact ABX Air

Except for historical information contained herein, the matters discussed in this release contain forward-looking statements that involve risks and uncertainties. ABX Air's actual results may differ materially from the results discussed in the forward-looking statements. There are a number of important factors that could cause our actual results to differ materially from those indicated by such forward-looking statements. These factors are contained from time to time in ABX Air's filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended 2003, and our Quarterly Report on Form 10-Q for the periods ended March 31st and June 30th, 2004. Readers should carefully review this release and should not place undue reliance on our forward-looking statements. These forward-looking statements were based on information, plans and estimates as of the date of this release. We undertake no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.