Thursday, June 28, 2007 --   Atlas Air Worldwide Holdings, Inc. (AAWW) (Nasdaq: AAWW), a leading provider of global air cargo services, today announced that its subsidiary, scheduled-service operator Polar Air Cargo Worldwide, Inc. (Polar), closed on a strategic transaction with DHL Express that includes the acquisition of an equity stake in Polar for $150 million in cash and a landmark 20-year commercial arrangement, with opportunities for AAWW companies to provide additional service and for future growth.

The agreement provides the AAWW companies with a valuable, long-term customer and potential revenue stream in excess of $3.5 billion over the full term of the agreement. The commercial arrangement includes blocked-space and related flight-service support agreements, and will ensure DHL Express has access to aircraft capacity in key global markets.

With the transaction in place, DHL Express acquired a 49 percent equity interest, including a 25 percent voting stake, in AAWW's subsidiary, Polar. Of the $150 million cash payment, $75 million was paid upon closing, with another $75 million to be paid in two installments, subject to acceleration should the blocked-space agreement commence prior to Oct. 31, 2008.

Under the agreements, DHL Express will gain access to capacity on six Boeing 747-400 freighters and one 747-200 freighter operated by Polar. DHL Express will also have access to additional capacity through wet-leasing of aircraft from AAWW's subsidiary, Atlas Air, Inc.

“We are pleased to close on this significant transaction,” said William J. Flynn, President and Chief Executive Officer of AAWW. “We welcome DHL Express as an anchor customer for Polar and the opportunity to be a sizeable supplier of air cargo capacity to a dominant player in the express business. At the same time, we look forward to building on this relationship to meet the demands for future growth on some of the world's most important trade routes.”

“Completing this partnership with Polar Air Cargo is a strategic thrust instrumental in positioning DHL as the global express and logistics provider of choice,” added John Mullen, Global CEO of DHL Express. “It shows that recognizing and responding to the needs of customers are a reiterative process for DHL - we understand the importance of broadening the scope of our service offerings to stay ahead of the curve in view of the increasing demand for cargo routes between Asia-Pacific and the U.S.”

Atlas Air Worldwide Holdings is ready to respond to the needs of DHL Express, Flynn said.

“Over the past few months, we have planned for the scheduling and staffing to accommodate the high-quality, high-reliability service required in the express business. At the same time, we will continue to serve our freight-forwarder customers with convenient schedules on existing routes. In fact, this agreement will add revenue and load certainty to Polar's existing network and enhance an already strong presence in key markets.”

About Atlas Air Worldwide Holdings, Inc.

AAWW is the parent company of Atlas Air, Inc. (Atlas) and Polar, which together operate the world's largest fleet of Boeing 747 freighter aircraft.

AAWW, through its principal subsidiaries Atlas Air and Polar, offers scheduled air cargo service, cargo charters, military charters, and ACMI aircraft leasing in which customers receive a dedicated aircraft, crew, maintenance and insurance on a long-term lease basis.

AAWW's press releases, SEC filings and other information can be accessed through the Company's home page, www.atlasair.com.

This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect AAWW's current views with respect to certain current and future events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainti