08/30/2005

A. Contributions to pension plans have become very difficult to plan and budget around. As the market and interest rates go up and down, companies are responsible for certain contributions to the pension plan by law. Similar to ABX, companies throughout the nation are struggling to make these huge and unpredictable contributions. We can still contribute to employees’ retirement through the 401(k) Plan, only in a more predictable way.

A. Yes, existing employees will continue to accrue benefits under the Retirement Income Plan (RIP). These changes, effective for employees hired after September 1, 2005, do not affect your current retirement benefits.

A. No, the change doesn’t apply to current participants. One of our goals was to make this change with the least amount of disruption possible – we’ve all experienced so much change in the last few years. We’ll continue to examine our benefit program to be sure it’s accomplishing what we intend – to provide a financially sound vehicle that gives employees the opportunity to accumulate retirement savings.

A. No your pension benefit cannot be converted to the new 401(k). The Retirement Income Plan (RIP) and 401(k) Plan are different plans with different IRS rules governing them.

A. Yes, you may take advantage of the Fidelity Freedom Funds. These funds are helpful if you don’t feel you have the knowledge and/or time to select your own investment funds. It’s like having your own professional investment manager. You select a fund based on your retirement age and leave it up to the manager to diversify your money. The professional investment manager will gradually invest more conservatively as you approach your retirement date.

A. The stock will be purchased at market rates on the NASDAQ exchange from other investors selling the stock. The Company is not selling the stock to you.

A. Our program was placed out to bid with several administrators and National Bank & Trust offered the best deal. Under the old program the purchase was free; however, the administrator charged a higher commission on the sale of the stock making up for the cost of the "free" purchase. The new program has a much lower overall cost for most employees.

A. More information about the program will be shared with employees in October.

A. ABX Air management makes no recommendation regarding the purchase or sale of Company stock. All investments carry risk and employees should carefully weigh the risk before making any investments.

Employee Assistance Program (EAP)

Q. What type of services does the EAP offer?

A. The Employee Assistance Program (EAP) can help employees and their covered family members with confidential, personal assistance for a wide range of concerns including:

A. The counselor will be located at the Healthcare Center. After the effective date, appointments can be made by contacting the Healthcare Center directly. The exact hours have yet to be worked out, but the counselor is expected to be here twice a week to see employees or family members. The hours will be announced once the schedule is finalized. Also, EAP services can be accessed at anytime (24/7) by calling (800) 788-5614.

Part-time Benefits

Q. Why is the company changing the part-time waiting period from 120 days to 90 days?

A. The change was made to better attract and retain employees and to keep our benefits competitive with other employers.

Q. I’m a new part-time employee with less than 120 days of service. When will my benefits become effective?

A. For part-time employees with less than 120 days of service, benefits will be effective on the later of September 1, 2005, or after completing 90 days of service.

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Revised: August 30, 2005.