Stonepath Group Completes New $25 Million Financing; New Financing Positions Company for Future Growth

Stonepath Group (AMEX: STG), a global logistics services
organization, today announced that it has completed a new domestic
credit facility with Laurus Master Fund, Ltd ("Laurus").
   The new $25 million secured domestic revolving credit facility
includes a $10 million note convertible into Stonepath's common stock
at a price of $1.08 per share, and a revolving note, which is not
convertible into any securities. In the event the convertible note,
and any subsequent convertible note, has been fully converted during
the three year period of the credit facility, a new $10 million note
will be issued which is convertible into Stonepath's common stock at a
price of 115% of the average market price of Stonepath's common stock
for the ten trading days prior to the issuance of such note.
   Additionally, Stonepath issued Laurus a warrant to purchase up to
2.5 million shares of the Company's common stock for a period of five
years, at an exercise price which varies with the number of shares
purchased under the Warrant, for prices ranging from $1.13 to $7.52.
   Dennis Pelino, Stonepath's Chairman, remarked, "This financing
agreement provides Stonepath with the financial flexibility to support
our ongoing expansion and future growth. With our restructuring
initiatives complete and financial performance improving, Stonepath is
well positioned to achieve our long-term objective of becoming a
leading logistics and supply chain provider with the ability to
capitalize on global market opportunities."
   Proceeds from the financing agreement will be used to prepay
Stonepath's prior credit facility with an affiliate of Patriarch
Partners, LLC and will be used in the future for general corporate
purposes.
   Further details on the financing agreements are available in the
Company's Form 8-K, filed with the Securities and Exchange Commission
on September 7, 2005.
   Laurus Master Fund, Ltd. is a private equity fund that specializes
in providing financing to emerging small and mid capitalization
companies.

   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. Through an aggressive
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.
Stonepath provides a full-range of time-definite transportation and
distribution solutions to a diverse client mix of retail leaders,
automotive and technology concerns, government agencies, and defense
contractors. For more information about the Company, please contact
John Brine at [phone].

   This Press Release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended,
regarding future results, levels of activity, events, trends or plans.
We have based these forward-looking statements on our current
expectations and projections about such future results, levels of
activity, events, trends or plans. These forward-looking statements
are not guarantees and are subject to known and unknown risks,
uncertainties and assumptions about us that may cause our actual
results, levels of activity, events, trends or plans to be materially
different from any future results, levels of activity, events, trends
or plans expressed or implied by such forward-looking statements. In
some cases, you can identify forward-looking statements by terminology
such as "guidance," "may," "will," "should," "could," "would,"
"expect," "plan," "anticipate," "believe," "estimate," "continue" or
the negative of such terms or other similar expressions. While it is
impossible to identify all of the factors that may cause our actual
results, levels of activity, events, trends or plans to differ
materially from those set forth in such forward-looking statements,
such factors include the inherent risks associated with: (i) our
ability to sustain an annual growth rate in revenue consistent with
recent results, (ii) our ability to achieve our targeted operating
margins, (iii) our ability to compute our restructuring efforts within
the costs we now expect, (iv) our ability to realize the planned
benefits from our restructuring efforts, (v) our dependence on certain
large customers, (vi) our dependence upon certain key personnel, (vii)
an unexpected adverse result in any legal proceeding, (viii)
competition in the freight forwarding, logistics and supply chain
management industry, (ix) the impact of current and future laws
affecting the Company's operations, (x) adverse changes in general
economic conditions as well as economic conditions affecting the
specific industries and customers we serve, and (xi) regional
disruptions in transportation. Other factors that might cause or
contribute to such a discrepancy between expected and actual results
include, but are not limited to, those factors identified in our
Securities and Exchange Commission filings (including our Annual
Report on Form 10-K for 2004), other public documents and recent press
releases, which can be found on our corporate web site,
www.stonepath.com. Readers are cautioned not to place undue reliance
on forward-looking statements, which speak only as of the date made.
We undertake no obligation to publicly release the result of any
revision of these forward-looking statements to reflect events or
circumstances after the date they are made or to reflect the
occurrence of unanticipated events.