Wolf Haldenstein Adler Freeman and Herz LLP Commences Class Action Lawsuit on Behalf of Stonepath, Inc. Shareholders

Wolf Haldenstein Adler Freeman and Herz LLP Commences Class
Action Lawsuit on Behalf of Stonepath, Inc. Shareholders 


NEW YORK, Oct. 6  /PRNewswire/ -- Wolf Haldenstein Adler Freeman & Herz LLP
filed a class action lawsuit in the United States District Court for the
Eastern District of Pennsylvania, on behalf of all persons who purchased the
securities of Stonepath, Inc. ("Stonepath" or the "Company") (AMEX:STG) between
May 7, 2003 and September 20, 2004, inclusive, (the "Class Period") against
defendants Stonepath and certain officers and directors of the Company.

A copy of the complaint filed in this action is available from the Court, or
can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at
http://www.whafh.com/.

The complaint alleges that defendants violated the federal securities laws by
issuing materially false and misleading statements throughout the Class Period
that had the effect of artificially inflating the market price of the Company's
securities.

The complaint further alleges that the Company failed to disclose and
misrepresented that it had understated its accrued purchased transportation
liability and related costs of purchased transportation rendering the Company's
financial statements materially false and misleading because they understated
the Company's liabilities and expenses, and overstated the Company's net income
and earning before income, taxes, depreciation, and amortization ("EBITDA"). 
As a result of the above, the Company's reported financial results were in
violation of GAAP.

On September 20, 2004, the Company announced its intention to restate its
fiscal year 2003 and first and second quarter 2004 financial statements. As a
result of this news, the price of Stonepath stock dropped 46% from September
19, 2004, and closed at $0.86 per share on heavy trading volume.

If you purchased Stonepath securities during the Class Period, you may request
that the Court appoint you as lead plaintiff by November 23, 2004.  A lead
plaintiff is a representative party that acts on behalf of other class members
in directing the litigation. In order to be appointed lead plaintiff, the Court
must determine that the class member's claim is typical of the claims of other
class members, and that the class member will adequately represent the class. 
Under certain circumstances, one or more class members may together serve as
"lead plaintiff." Your ability to share in any recovery is not, however,
affected by the decision whether or not to serve as a lead plaintiff.  You may
retain Wolf Haldenstein, or other counsel of your choice, to serve as your
counsel in this action.

Wolf Haldenstein has extensive experience in the prosecution of securities
class actions and derivative litigation in state and federal trial and
appellate courts across the country.  The firm has approximately 60 attorneys
in various practice areas; and offices in Chicago, New York City, San Diego,
and West Palm Beach.  The reputation and expertise of this firm in shareholder
and other class litigation has been repeatedly recognized by the courts, which
have appointed it to major positions in complex securities multi-district and
consolidated litigation.

If you wish to discuss this action or have any questions, please contact Wolf
Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York
10016, by telephone at [phone] (Fred Taylor Isquith, Esq., Gustavo
Bruckner, Esq., or Derek Behnke), via e-mail at  or visit our website at
http://www.whafh.com/. All e-mail correspondence should make reference to
Stonepath. 

DATASOURCE: Wolf Haldenstein Adler Freeman & Herz LLP



CONTACT:  Fred Taylor Isquith, Esq., Gustavo Bruckner, Esq., or Derek

Behnke, all of Wolf Haldenstein Adler Freeman & Herz LLP, 1-800-575-0735



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

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