Stonepath Group and Czech Republic-Based Wakestone Logistics to Enter Joint Venture

Firms to Capitalize on Strong Demand for Logistics Services in Eastern Europe 


SEATTLE, March 6  /PRNewswire-FirstCall/ -- Stonepath Group (AMEX:STG), the global logistics services organization, today announced continued strengthening of its global network in key logistics markets, agreeing to enter into a joint venture with Czech Republic-based transportation firm Wakestone Logistics.  The joint venture will market a full range of transportation services to multinational companies increasingly utilizing Eastern Europe as an integral part of their global distribution strategies.

The joint venture will be based in the Czech Republic and structured to serve the key tradelanes of Asia, North America and Europe and will provide a full range of flexible tailored transportation and distribution solutions to the automotive, technology, retail, and consumer sectors.

Dennis L. Pelino, Chairman of Stonepath Group, remarked, "With this joint venture in place, Stonepath will have access to resources, capabilities, and depth to take advantage of significant opportunities in this highly strategic region.  The collaboration considerably increases the volume we are handling in the region."

Pelino added, "We are joining up with a deeply experienced management team, who have established and run very successful Eastern European logistics operations for global third-party logistics (3PL) providers in the past."

Mr. Jara Schoen, Managing Director of Wakestone Logistics, commented, "We're very pleased to join forces with Stonepath in the Czech Republic and we expect that our collaboration has the potential to add 3,000 TEUs to STG's international network annually. Corporations continue to expand their global reach for sourcing, manufacturing, and distributing their products, and innovative 3PL's like Stonepath are wise to position themselves to take advantage of these opportunities.  We look forward to working with Stonepath and to becoming a leading player in the region."

About Wakestone Logistics

Wakestone, (http://www.wakestone.cz/), based in Prague with two affiliates in the Czech Republic, provides a range of transportation and logistics services to major international and local companies, including air and ocean frieght forwarding, surface, multi-modal transport, and contract logistics and projects.

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 a strategic acquisition program and strong organic growth, the Company has expanded rapidly, establishing a network of owned operations throughout North America, the Asia Pacific region and Latin America. 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 the restatement of our financial statements for past periods, as well as regarding future results, levels of activity, events, trends or plans. We have based these forward-looking statements on our current expectations and projections about the outcome of our continuing analysis with respect to the restatement of our financial statements, as well as 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 revenues consistent with recent results, (ii) our dependence on certain large customers, (iii) our dependence upon certain key personnel, (iv) competition in the freight forwarding, logistics and supply chain management industry, (v) the impact of current and future laws affecting the Company's operations, (vi) adverse changes in general economic conditions as well as economic conditions affecting the specific industries and customers we serve, (vii) regional disruptions in transportation, and (viii) other factors which are or may be identified from time to time in our Securities and Exchange Commission filings and other public announcements, including our most recent Annual Report on Form 10-K  for the year ended December 31, 2004.  There can be no assurance that these and other factors will not affect the accuracy of such forward-looking statements. 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. 

DATASOURCE: Stonepath Group



CONTACT:  John Brine, Stonepath Group, [phone]



Web site:  http://www.stonepath.com/

http://www.wakestone.cz/ 

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