CD&L Revenue Increases 12% in 1st Quarter

CD&L Revenue Increases 12% in 1st Quarter
Net Income More Than Doubles 


SOUTH HACKENSACK, N.J., May 16  /PRNewswire-FirstCall/ -- CD&L, Inc.
(AMEX:CDV), one of North America's leading providers of time critical delivery
and logistics services announced 2005 1st Quarter revenues of $52,355,000, an
increase of $5.873 million or 12% above the 1st Quarter in 2004.  Net income
for the Quarter grew to $428,000, or $.05 per basic common share compared to
net income for the same period in 2004 of $169,000 or $.02 per basic common
share.

The Company's gross margin improved by 1.2% to 19.7% of revenue during the
first three months of 2005, compared to the 18.5% in the first three months of
2004.  Total SG&A expenses increased slightly to 17% of revenue vs. 16.2% in
the same period last year.  The higher SG&A costs were due primarily to
additional staffing required to support the Company's continuing increased
revenue base.

Earnings before interest, depreciation, amortization and taxes ("EBITDA")
reached $1,428,000 in the first quarter 2005 compared to $1,062,000 in the same
period of 2004, representing an improvement of 34.4%.  "We are very pleased
with the company's performance during the 1st Quarter of this year with both
our revenue growth and earnings improvement," said Russell Reardon, the
company's CFO.  Mr. Reardon added, "Our positive trends from 2004 continued
into the 1st Quarter of 2005."

CD&L, Inc. operates 94 facilities in 20 states, including operations at 27
customer owned facilities, providing last mile delivery solutions to various
industries. The Company has approximately 1,500 employees and utilizes
approximately 2,800 independent contractors to provide time-sensitive delivery
services to thousands of customers across the country.

Certain statements in this news release may be "forward-looking statements"
within the meaning of Section 27A of the Securities and Exchange Act of 1933.
These forward-looking statements include comments on the Company's improved
operating performance, business development program, and increased revenues and
earnings. Statements regarding future developments are based upon current
expectations and involve certain risks and uncertainties that could cause
actual results and developments to differ materially from the forward-looking
statements. Potential risks include the risk that the Company's operating
performance will not improve, or that its business development program will be
unsuccessful, or that revenues or earnings will decrease as well as other risks
specified in the Company's SEC filings.

                       CD&L, INC. AND SUBSIDIARIES
             CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  (In thousands, except per share data)
                               (Unaudited)

                                                  For the Three Months Ended
                                                             March 31,
                                                       2005           2004

  Revenue                                            $52,355        $46,482

  Cost of revenue                                     42,046         37,884

  Gross profit                                        10,309          8,598

  Costs and Expenses:

  Selling, general, and administrative expenses        8,880          7,535
  Depreciation and amortization                          274            221
  Other income, net                                       (1)           (11)
  Interest expense                                       391            571

   Total Costs and Expenses                            9,544          8,316

  Income before provision for income taxes               765            282

  Provision for income taxes                             337            113

   Net income                                           $428           $169

  Net income per share:
   Basic                                                $.05           $.02
   Diluted                                              $.03           $.02

  Basic weighted average common shares outstanding     9,356          7,659

  Diluted weighted average common shares outstanding  20,253          8,238


                       CD&L, INC. AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                 (In thousands, except share information)

                                                   March 31,   December 31,
                                                     2005          2004
                                                  (Unaudited)    (Note 1)

                                ASSETS

  CURRENT ASSETS:
   Cash and cash equivalents                        $1,548           $617
   Accounts receivable, net                         21,054         21,548
   Prepaid expenses and other current assets         4,606          4,854
    Total current assets                            27,208         27,019

  EQUIPMENT AND LEASEHOLD IMPROVEMENTS, net          1,523          1,627
  GOODWILL, net                                     11,531         11,531
  INTANGIBLE ASSETS AND DEFERRED FINANCING COSTS,
   net                                               1,629          1,737
  OTHER ASSETS                                       1,072            828
    Total assets                                   $42,963        $42,742

  LIABILITIES AND STOCKHOLDERS' EQUITY

  CURRENT LIABILITIES:
   Short-term borrowings                            $2,497         $4,809
   Current maturities of long-term debt                496            487
   Accounts payable, accrued liabilities and bank
    overdrafts                                      15,796         13,660
    Total current liabilities                       18,789         18,956

  LONG-TERM DEBT, net of current maturities          9,685          9,812
  OTHER LONG-TERM LIABILITIES                        1,457          1,370
    Total liabilities                               29,931         30,138

  COMMITMENTS AND CONTINGENCIES

  STOCKHOLDERS' EQUITY:
   Preferred stock, $.001 par value; 2,000,000 shares
    authorized; no shares issued and outstanding     4,000          4,000
   Common stock, $.001 par value; 30,000,000 shares
    authorized; 9,385,678 shares issued at
    March 31, 2005 and December 31, 2004                 9              9
   Additional paid-in capital                       14,320         14,320
   Treasury stock, 29,367 shares at cost              (162)          (162)
   Accumulated deficit                              (5,135)        (5,563)
    Total stockholders' equity                      13,032         12,604
    Total liabilities and stockholders' equity     $42,963        $42,742


DATASOURCE: CD&L, Inc.



CONTACT:  Russell Reardon, CFO of CD&L, Inc., [phone]

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