KHK Kitty Hawk

Kitty Hawk, Inc. (AMEX:KHK), the premier provider of mission-critical, heavy weight transportation services in North America, announced today that it has selected Softair AG's CARGOSPOT software platform for the automation of its Cargo operations throughout its air and ground networks. Kitty Hawk will deploy CARGOSPOT across its expedited air and ground freight network operations. The CARGOSPOT products will automate processes throughout Kitty Hawk's operations and provide the Company with a powerful tool in support of seamless collaboration with different business partners in the global supply chain. The communication-centric, web-based platform will provide Kitty Hawk and its customers with instant global shipment visibility, tracing and tracking as well as wide-ranging, industry-compliant message support capabilities, including interfaces to Cargo Imp, SITA, SMS, e-mail, Cargo2000 and many customer-proprietary systems. In addition, the new operations software has been designed in a fully integrated and user-friendly manner allowing an easy roll-out, fast adoption and on-going integration of new technologies. "This software implementation is another proof point that Kitty Hawk is committed to the highest level of service in the industry," said Robert W. Zoller, Kitty Hawk President and CEO. "CARGOSPOT will enhance our ability to provide uniform quality and service standards throughout our growing global network of customers, which include freight forwarders, integrated carriers, logistics companies, domestic and international airlines." Dr. Gabriel Weisskopf, CEO of Softair AG said, "Kitty Hawk continues to invest in both its air and ground operations and the installation of CARGOSPOT will establish a modular platform that allows a phased and cost-effective migration away from legacy systems. The installation will be particularly unique because it will immediately bring one common, scalable and proven technology to a broad span of business activities - air, ground, central and regional hub operations as well as a wide range of other communications, management and control functions. It is an important milestone for SoftAir AG." About Kitty Hawk, Inc. www.kittyhawkcompanies.com As a recognized leader in customer service, Kitty Hawk is the premier provider of guaranteed, mission-critical, scheduled overnight air and beginning October 31, 2005 of scheduled time-definite coast-to-coast expedited ground freight transportation to major business centers and surrounding communities throughout North America, including, Alaska, Hawaii, Vancouver and Toronto, Canada, and San Juan, Puerto Rico. With more than 30 years experience in the aviation and air freight industries, Kitty Hawk, including its recent acquisition of the assets of Air Container Transport, plays a key connecting role in the global supply chain. Kitty Hawk serves the logistics needs of more than 700 freight forwarders, integrated carriers, logistics companies and major airlines with its extensive integrated air and ground network, fleet of Boeing 737-300SF and 727-200 cargo aircraft, a 239,000 square-foot cargo warehouse, US Customs clearance and sort facility at its Fort Wayne, Indiana hub and five additional regional air and ground hub facilities. In 2005, Kitty Hawk became the North American launch customer for the fuel-efficient and environmentally-friendly Boeing 737-300SF aircraft. In late 2005, Kitty Hawk launched a coast-to-coast expedited ground network, including six regional hubs, serving major business centers, international freight gateways and surrounding communities throughout North America. In June, 2006, Kitty Hawk, Inc.'s operating subsidiary, Kitty Hawk Ground, Inc., acquired the majority of the assets of Air Container Transport, the premier airport-to-airport expedited freight network on the West Coast. Kitty Hawk's air and ground cargo networks, award-winning, guaranteed overnight time-definite air service and dedicated coast-to-coast ground operation are ideal for mission-critical, heavy-weight shipments (over 150 lbs) or special goods with unique dimensions, high security, high value, perishable, animal and other important shipments. About Softair AG www.cargospot.com Since its inception in 1985 Swiss-based Softair AG, has been dedicated to the development and marketing of standard software applications for the air cargo industry. Its products, such as Cargosys, Cargo One, Handling Top and Cargospot have been licensed to over 100 Airlines, General Sales Agents, Handling Agents, Forwarders and CASS Systems in 75 markets on 5 continents. Statement under the Private Securities Litigation Reform Act This report may contain forward-looking statements that are intended to be subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements relate to future events or future financial and operating performance and involve known and unknown risks and uncertainties that may cause actual results or performance to be materially different from those indicated by any forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "forecast," "may," "will," "could," "should," "expect," "intends," "plan," "believe," "potential" or other similar words indicating future events or contingencies. Some of the things that could cause actual results to differ from expectations are: economic conditions; the impact of high fuel prices; our inability to successfully implement and operate our expanded ground network; our failure to close the acquisition of the operating assets of Air Container Transport; our inability to successfully operate and integrate the Air Container Transport operations; failure of key suppliers and vendors to perform; our inability to attract sufficient customers at economical prices for our expanded ground network; unforeseen increases in liquidity and working capital requirements related to our expanded ground network; potential competitive responses from other operators of coast-to-coast less than truckload networks; the continued impact of terrorist attacks, global instability and potential U.S. military involvement; the Company's significant lease obligations and indebtedness; the competitive environment and other trends in the Company's industry; changes in laws and regulations; changes in the Company's operating costs including fuel; changes in the Company's business plans; interest rates and the availability of financing; liability and other claims asserted against the Company; labor disputes; the Company's ability to attract and retain qualified personnel; inflation; and costs. For a discussion of these and other risk factors, see Item 7 of the Company's Annual Report on Form 10-K for the year ended December 31, 2005. All of the forward-looking statements are qualified in their entirety by reference to the risk factors discussed therein. These risk factors may not be exhaustive. The Company operates in a continually changing business environment, and new risk factors emerge from time to time. Management cannot predict such new risk factors, nor can it assess the impact, if any, of such new risk factors on the Company's business or events described in any forward-looking statements. The Company disclaims any obligation to publicly update or revise any forward-looking statements after the date of this report to conform them to actual results.