Stonepath Announces Class Action Lawsuit Dismissed; Derivative Class Action Appealed

Stonepath Group (AMEX: STG), a global logistics services
organization, today announced the dismissal of the consolidated class
action complaint In re Stonepath Group, Inc. Securities Litigation.
   The complaint alleged claims for securities fraud under the
Securities Exchange Act of 1934. It was filed earlier this year in the
United States District Court for the Eastern District of Pennsylvania
after the consolidation of eight separate actions that were filed last
fall shortly after Stonepath announced that it would restate its
financial statements for prior periods. The order dismissing the
complaint provides the plaintiff with the opportunity to file an
amended complaint.
   In other legal developments, the plaintiff in Ronald Jeffrey Neer
v. Dennis L. Pelino, et al., a derivative lawsuit filed on October 12,
2004 in the United States District Court in Philadelphia against
certain of the Company's present and former directors and officers,
has filed a notice of appeal with respect to the September 27, 2005
decision of the Court dismissing that action for lack of subject
matter jurisdiction.

   About Stonepath Group (AMEX:STG)

   Stonepath (www.stonepath.com) is a global, third-party logistics
organization providing a full range of transportation and distribution
solutions to multinational and local businesses including a diverse
client mix of retail leaders, automotive and technology concerns,
government agencies, and defense contractors. Through a strategic
acquisition strategy and strong organic growth, the Company has
expanded rapidly, establishing a network of owned operations
throughout the U.S., the Asia-Pacific region and Latin America. For
more information about the Company, please contact John Brine at (212)
254-8280.