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                                                                 Exhibit 10.1
FOR IMMEDIATE RELEASE
FEBRUARY 3, 1998



                      AASCHE TRANSPORTATION SERVICES, INC.
                            COMPLETES ACQUISITION OF
                  THE MUNICIPAL SOLID WASTE TRANSPORT DIVISION
                          OF JACK GRAY TRANSPORT, INC.


SHANNON, IL - FEBRUARY 3, 1998 - AASCHE TRANSPORTATION SERVICES, INC.
(NASDAQ/NNM:ASHE) announced today the completion of the acquisition of the
municipal solid waste transport division of Jack Gray Transport, Inc. (the
"Waste Transport Business") for $30 million in cash. The Waste Transport
Business will be operated through Specialty Transportation Services, Inc.
("STS"), a newly formed subsidiary of Aasche, headquartered in Portage, Indiana.
STS transports municipal solid and special waste under contracts ranging from
five to twenty years with municipalities and large national waste service
companies, including Waste Management, Browning-Ferris and Republic Waste
Industries. Financing for the acquisition was provided through a senior credit
facility by Mellon Bank, N.A. and through subordinated debt and equity financing
by American Capital Strategies, Ltd., a specialty finance company based in
Bethesda, Maryland, which also holds a 10% ownership interest in STS.

Revenues for the twelve months ended December 31, 1997 and the year ended
December 31, 1996 for the Waste Transport Business were approximately
$34,593,000 and $30,616,000, respectively.

Under exclusive waste transfer contracts, STS transports solid and special waste
from transfer stations to landfill sites owned by either the municipality or a
waste services company. STS services these waste contracts from terminals in the
following metropolitan areas: Portland, Oregon; Long, Island, New York; Los
Angeles, California; Phoenix, Arizona; Nashville, Tennessee; Seattle,
Washington; Greensboro, North Carolina; and Spartanburg, South Carolina. One of
STS' principal contracts is a 20 year contract averaging approximately $10
million per year with a tri-county governmental agency in Portland, Oregon,
known as the Metro Sanitary District, to haul virtually all of the county's
waste.

STS is managed by a seasoned group of executives and terminal managers led by
Gary I. Goldberg. Mr. Goldberg has entered into a five year employment agreement
to serve as the President of STS and will continue as a member of Aasche's Board
of Directors. In addition, he is expected to be elected shortly as Vice
President of Aasche. Mr. Goldberg organized the waste transport division of Jack
Gray Transport fifteen years ago and served as its executive vice president
prior to joining STS.

STS will be operated as a stand-alone business unit separate from Aasche's
existing temperature-controlled operations with separate tractors, trailers,
drivers and operations personnel.


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                                                                    Exhibit 10.1


According to Mr. Goldberg, "As the only national for-hire carrier of municipal
solid waste, we believe that STS is well positioned to take advantage of the
significant growth opportunities in the municipal waste industry which are being
experienced due to the accelerated outsourcing of transportation by the large
waste companies. Based on our strong customer relationships with the major waste
companies, we expect to capture a large share of the newly outsourced business."

"This acquisition adds diversity to our existing operations as well as a
significant increase in our overall revenue base," commented Larry L. Asche,
Chairman and Chief Executive Officer of Aasche.

"As a direct subsidiary of Aasche, STS expects to generate operating synergies,
including enhanced purchasing capabilities to reduce costs, increased management
depth and strengthened administrative and accounting related functions" added
Leon M. Monachos, Aasche's CFO.

Aasche, through its operating subsidiaries, Asche Transfer, Inc. and AG
Carriers, Inc., is a leading provider of temperature-controlled, time sensitive
transportation of frozen foods, juice concentrates, perishable commodities,
household and retail commodities, and tropical foliage. Its shares trade on the
NASDAQ National Market under the symbol ASHE.

This release contains forward-looking statements relating to future financial
results or business expectations. Business plans may change as circumstances
warrant. Actual results may differ materially as a result of factors over which
the company has no control. Such factors include, but are not limited to:
general economic conditions, availability of drivers, labor costs, interest
rates, competition and governmental regulations. These risk factors and
additional information are included in the company's reports on file with the
Securities and Exchange Commission.

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