Third Quarter Highlights:
    *  Revenues up 50%
    *  Operating income increases by 33%
    *  Net income growth exceeds 30% for tenth consecutive quarter; increases
       by 38%
    *  Two acquisitions completed and integrated

                                       Quarter Ended                   %
    Financial & Operating Data      6/30/98         6/30/97        Change
    Revenues (000's)               $107,050         $71,301           50%
    Operating Income (000's)         $8,472          $6,352           33%
    Net Income (000's)               $5,645          $4,104           38%
    Basic Earnings Per Share          $0.30           $0.23           30%
    Diluted Earnings Per Share        $0.29           $0.22           32%

    Operating Data
    Freight Forwarding Shipments    270,955         183,085           48%
    Average Weight (lbs.) Per
      Shipment                          634             598            6%
    Freight Forwarding Terminals         66              57           16%
    Local Delivery Locations             58              43           35%

    "We are very pleased with our results for the third quarter.  Both
operating income and net income increased greater than 33 percent during the
third quarter compared to last year.  These results reflect the strong
internal growth rate of the Company's North American operations, combined with
the new international growth opportunities resulting from the April 1998
completion and integration of the Latin America and United Kingdom
acquisitions," said James R. Crane, Chairman and Chief Executive Officer.

    HOUSTON, July 28 /PRNewswire/ -- Eagle USA Airfreight, Inc. (Nasdaq: EUSA)
today announced increased revenues and earnings for the third quarter ended
June 30, 1998.  Revenues for the third quarter increased 50 percent to
$107.1 million from $71.3 million in the same period of fiscal 1997.  Net
income for the quarter totaled $5.6 million, a 38 percent increase over
$4.1 million in the third quarter of fiscal 1997.  Basic earnings per share of
$0.30 increased 30 percent from $0.23 in the same period of fiscal 1997.
Diluted earnings per share of $0.29 increased 32 percent from $0.22 in the
same period of fiscal 1997.  Same terminal revenue growth was 26 percent
during the third quarter.
    Revenues for the nine months ended June 30, 1998 increased 47 percent to
$295.2 million from $200.4 million in the same period of fiscal 1997.  Net
income totaled $15.5 million, a 34 percent increase over $11.6 million in the
nine months of fiscal 1997.  Basic earnings per share of $0.83 increased
28 percent from $0.65 in the same period of fiscal 1997.  Diluted earnings per
share of $0.80 increased 29 percent from $0.62 in the same period of fiscal
1997.  Cash flows from operating activities for the nine months ended June 30,
1998 were $19.2 million compared to $1.5 million in the same period of fiscal
1997.
    "We are very pleased with our results for the third quarter.  Both
operating income and net income increased greater than 33 percent during the
third quarter compared to last year.  These results reflect the strong
internal growth rate of the Company's North American operations, combined with
the new international growth opportunities resulting from the April 1998
completion and integration of the Latin America and United Kingdom
acquisitions," said James R. Crane, Chairman and Chief Executive Officer.
    Crane also noted that continued strong growth in international sales is
helping fuel overall results.  The weight of international shipments is
typically 2-3 times that of domestic shipments, and as a result, generate
greater revenue per shipment.  International sales, which accounted for
14 percent of total revenues for the quarter, increased 150 percent in the
third quarter of fiscal 1998 over the same period in fiscal 1997.  The April
1998 acquisitions of S. Boardman and Eagle Companies added approximately
$7.3 million in international revenue during the third quarter.
    Excluding the effects of the two April 1998 acquisitions, gross profit and
operating income as a percentage of revenues totaled 44.4 percent and
8.4 percent respectively during the quarter.  Overall gross profit and
operating income as a percentage of revenues with the two acquisitions totaled
43.6 percent and 7.9 percent respectively for the quarter.
    The Company continues to evaluate acquisition candidates as it pursues its
global growth plans.
    Continued strong marketing efforts yielded new business for the Company
during the third quarter.  Eagle USA signed a three-year contract with Dayton
Hudson Corporation and is handling its expedited heavy-weight traffic from its
major retail suppliers to its distribution centers throughout the United
States.  The Company also secured new business as an approved heavy-weight
carrier for Harley-Davidson Motor Company, World Color Press and Hershey Foods
Corporation.
    During July 1998, the Company opened North American terminals in Norfolk,
Va., and Jackson, Miss.  Management expects to open between 4 to 5 additional
North American terminals during the fourth quarter of fiscal 1998.  The
Company also expects to expand its terminal base in London with a new facility
opening at the Gatwick airport in September 1998.
    "Looking forward, we are optimistic for a strong finish to fiscal 1998,"
continued Crane.  "Our operating model is as sound as ever, and we continue to
make the investments necessary to accommodate our strong growth and to
position Eagle USA for continued growth in 1999 and beyond."
    Eagle USA Airfreight's dedication to providing superior flexibility and
fewer shipping restrictions on a price competitive basis has made it a leading
provider of airfreight forwarding and other transportation and logistics
services.  Its network of 68 terminals features state-of-the-art information
systems to maximize cargo management efficiency and customer satisfaction.
The Company's shares are traded on the Nasdaq National Market under the symbol
"EUSA."
    The statements in this press release regarding strong finish for fiscal
1998, the plans for new terminals, results and expansion plans, future growth,
global growth plans, future business, operations or results and any other
statements which are not historical facts are forward looking statements.
Such statements involve risks and uncertainties, including, but not limited
to, competition, general economic conditions, ability to manage and continue
growth, risks of international operations and other factors detailed in the
Company's filings with the Securities and Exchange Commission.  Should one or
more of these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual outcomes may vary materially from those
indicated.


                          EAGLE USA AIRFREIGHT, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                   (in thousands, except per share amounts)
                                 (unaudited)
                                  Three Months                Nine Months
                                 Ended June 30,            Ended June 30,
                              1998          1997         1998          1997

    Revenues              $107,050       $71,301     $295,239      $200,376
    Cost of transportation  60,343        39,981      164,525       112,858
                            46,707        31,320      130,714        87,518

    Personnel costs         24,135        16,911       69,071        46,084
    Other selling, general
      and admin. costs      14,100         8,057       37,758        23,859
    Operating income         8,472         6,352       23,885        17,575
    Interest and other
      income                   486           374        1,259         1,348
    Income before provision for
      income taxes           8,958         6,726       25,144        18,923
    Provision for income
      taxes                  3,313         2,622        9,620         7,357
    Net income              $5,645        $4,104      $15,524       $11,566

    Basic earnings per
      share                  $0.30         $0.23        $0.83         $0.65
    Diluted earnings per
      share                  $0.29         $0.22        $0.80         $0.62
    Basic weighted average
      common shares
      outstanding           19,008        17,906       18,617        17,716
    Diluted weighted average
      common shares
      outstanding           19,674        18,673       19,322        18,614


                          EAGLE USA AIRFREIGHT, INC.
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                (in thousands)


                                 June 30,             September 30,
                                   1998                    1997
                               (unaudited)               (audited)

    ASSETS
    Current assets:
    Cash, cash equivalents and
      short-term investments      $47,956                 $27,786
    Accounts receivable, net       57,239                  54,662
    Prepaid expenses
      and other                     4,837                   4,557
      Total current assets        110,032                  87,005
    Property and equipment, net    20,167                  14,090
    Other assets                   10,104                   5,776

      Total assets               $140,303                $106,871

    LIABILITIES AND SHAREHOLDERS' EQUITY

    Current liabilities:
    Accounts payable and accrued
      transportation              $16,278                 $13,819
    Other current liabilities      10,907                  12,548
      Total current liabilities    27,185                  26,367

    Long-term indebtedness             --                      --

    Shareholders' equity          113,118                  80,504

      Total liabilities and
        shareholders' equity     $140,303                $106,871

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