Air Transport Group Holdings Announces Entry into a Definitive Agreement of Air Transport Group General Aviation Acquisition

Air Transport Group General Aviation, is in the business of leasing single-engine and light twin-engine aircraft to aviation schools and corporate operators. ATGGA continues to increase its client base, and hence, its asset base, through aggressive marketing in the general aviation industry. Currently, there are a growing number of accredited collegiate aviation programs worldwide; whose curriculum includes the operation, engineering, research, manufacturing, marketing, and management of modern aircraft. (http://www.bestaviation.net/flight_school)

Air Transport Group Holdings' Chairman and CEO Arnold Leonora stated, "We are very excited about the future of ATGGA, as the need for aviation professionals increase globally, so does the requirement for equipment by accredited aviation colleges. These schools not only train commercial and corporate pilots but the aviation professionals that support them; consequently additional equipment enables ATGGA to increase its annual growth rate."

Air Transport Group General Aviation posted revenues of $7.2 million last year and are expected to exceed $8 million in revenues for 2008. ATGGA is profitable, and this acquisition will be immediately accretive to the earnings of ATG Holdings. In terms of asset values, ATGGA has assets in excess of $4 million and based on Air Transport Group Holdings (OTCBB:AITG) recent closing stock price, this transaction will increase assets of ATGGA by approximately $1 million.

Mr. Jamail Larkins, President of ATGGA added, "General aviation schools have definitely benefited from employment re-tooling and re-training underway in America. This transaction represents an investment in the future of the aviation business worldwide."

Mr. Larkins is an active member of the general aviation community, serving as a special consultant to the United States Federal Aviation Administration, and a member of the Experimental Aircraft Association. He is a licensed commercial pilot and he remains on the forefront of aviation growth both in the private and commercial sectors. Mr. Larkins has appeared on many national broadcasts promoting aviation to youth and minorities, including Late Night with David Letterman.

About Air Transport Group Holdings: ATG Holdings is a holding company structured to acquire majority-equity interests of businesses in the aviation, travel, and leisure-time industries. By acquiring small to mid-size companies ATG Holdings has the opportunity to consolidate overhead expenses, negotiate preferred rates with vendors and increase its asset base. For more information on ATG Holdings, visit www.FLYAITG.com.

ATG Holdings seeks further acquisitions in aviation, travel and leisure-time industries. Additional business combinations will be announced in the first quarter of 2009. Recognizing undervalued companies in the worldwide marketplace and bringing them under ATG Holdings' corporate umbrella allows "Holdings" to create a network of small to midsize companies in the airline industry that will have (i) common product / service branding; (ii) centralized operational management; and (iii) vendor accounts. These benefits combine to decrease consolidated expenses while at the same time increasing revenues of the individual companies.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("the Exchange Act"), and as such, may involve risks and uncertainties. Forward-looking statements which are based upon certain assumptions and describe future plans, strategies and expectations, are generally identifiable by the use of words as "believe," "expect," "intend," "anticipate," "project," or other similar expressions. These forward-looking statements relate to, among other things, future performance, and perceived opportunities in the market and statements regarding the Company's mission and vision. The Company's actual results, performance and achievements may differ materially from the results, performance, and achievements expressed or implied in such forward-looking statements.

SOURCE: Air Transport Group Holdings

Air Transport Group Holdings Arnold Leonora, 404-671-9253 info@flyaitg.com