Target Logistics, Inc. Achieves Record Earnings and Revenue Growth for FY 2006; Revenue up $22 Million; Net Income up 73%

Target Logistics, Inc. (AMEX: TLG), a domestic and
international freight forwarder and logistics provider, today
announced a net income for the fourth quarter ended June 30, 2006 of
$642,564 or $.03 per diluted share ($0.03 per basic share), an
increase of 27% compared to $505,280 or $.02 per diluted share ($.03
per basic share) reported in the fourth quarter ended June 30, 2005.
Fourth quarter revenue was $40.4 million, an increase of 10.0% from
the $36.7 million reported in the comparable 2005 period.
   For the fiscal year ended June 30, 2006, net income increased 73%
to $2.7 million, or $.13 per diluted share ($0.15 per basic share),
compared to $1.56 million or $.07 per diluted share ($0.08 per basic
share) for the fiscal year ended June 30, 2005. Annual revenue
increased 16% to $160 million from the $138 million reported in the
comparable 2005 period.
   "Our continued success provides testimony to the strength of our
non-asset based business model," said Stuart Hettleman, chairman and
chief executive officer. "We met our yearly forecasts, and believe the
momentum we have seen in both top and bottom line performance can
continue in FY 2007 and beyond. This is our fifteenth consecutive
profitable quarter, and our fifth consecutive year of operating income
increases for Target."
   Subsequent to the end of the year, the company announced the
acquisition of certain assets of Discovery Air Cargo, Inc., a freight
forwarder providing a full range of services to the New York City and
Long Island area. The acquisition is expected to add $7 million in
annual revenues in FY 2007.
   "We are very excited about the increase in our acquisition
pipeline and its potential impact on our future growth. The Discovery
acquisition reflects an important element of our growth strategy: to
increase freight volume in cities where Target already has a presence
which enables us to negotiate more favorable rates from our
transportation providers," concluded Mr. Hettleman.
   The company noted that FY 2006 marks the 4th consecutive year that
SG&A has decreased as a percentage of revenue. On an annual basis,
SG&A as a percentage of revenue decreased from 30.1% in 2005 to 28.4%
in 2006.
   "The increase in Q4 revenue of 10% was achieved solely through
organic growth," said Phil Dubato, chief financial officer. "Operating
and net income increases were solid, despite a comparison with Q4
2005, when we experienced an inordinate demand for value added and
special services which command a premium."
   Target Logistics will hold a conference call at 4:00 PM. ET on
Wednesday, September 6, 2006. Interested parties are invited to listen
to the call live, over the Internet at www.targetlogistics.com. The
live call may also be accessed at
http://phx.corporate-ir.net/playerlink.zhtml?c=62341&s=wm&e=1377712.
The call will also be available by dialing [phone], or for
international callers, [phone] and by using the confirmation
code 17101884. A replay of the teleconference will be available until
October 6, 2006 at www.targetlogistics.com. A replay will also be
available by dialing [phone] (domestic) or 617 801 6888
(international) and by using confirmation code 88546544.

   Target Logistics, Inc. provides domestic and international time
definite freight forwarding and logistics services through its wholly
owned subsidiary, Target Logistic Services, Inc. Target has a network
of offices in 34 cities throughout the United States and a worldwide
agent network with coverage in over 70 countries. Its freight
forwarding services include arranging for the total transport of
customers' freight, including providing door to door service,
distributions and reverse logistics.

   Statements contained in this press release that are not historical
facts are forward-looking statements as that term is defined in the
Private Securities Litigation Reform Act of 1995. Although Target
Logistics believes that the expectations reflected in such
forward-looking statements are reasonable, the forward-looking
statements are subject to risks and uncertainties that could cause
actual results to differ materially from those projections.

-0-
*T
                        Target Logistics, Inc.
                 Consolidated Statements of Operations

                    Three months ended         Twelve months ended
                         June 30,                   June 30,
                 ------------------------- ---------------------------
                    2006         2005          2006          2005
                 ------------ ------------ ------------- -------------
                                             (audited)     (audited)

Operating
 revenues        $40,404,501  $36,738,180  $160,368,570  $138,392,375
Cost of
 transportation   27,901,554   24,688,659   110,098,043    93,913,264
                 ------------ ------------ ------------- -------------
 Gross profit     12,502,947   12,049,521    50,270,527    44,479,111


Selling, general
 and
 administrative
 expenses
 ("SG&A"):
Target
 subsidiary
 (exclusive
 forwarder
 commissions)      3,781,547    3,956,818    15,874,335    15,920,706
SG&A - Target
 subsidiary        7,144,869    6,693,550    27,620,391    24,002,255
SG&A - Corporate     386,452      274,628     1,384,180     1,102,018
Depreciation and
 amortization        169,586      264,503       616,310       600,155
                 ------------ ------------ ------------- -------------
 Selling,
  general and
  administrative
  expenses        11,482,454   11,189,499    45,495,216    41,625,134

Operating income   1,020,493      860,022     4,775,311     2,853,977

Other income
 (expense):
 Interest
  (expense)           (7,997)     (21,910)     (126,516)      (85,717)

Income before
 taxes             1,012,496      838,112     4,648,795     2,768,260
 Provision for
  income taxes       369,932      332,832     1,943,197     1,207,122
                 ------------ ------------ ------------- -------------
Net income          $642,564     $505,280    $2,705,598    $1,561,138
                 ------------ ------------ ------------- -------------

Net Income per
 share
 attributable to
 common
 shareholders:
 Basic                 $0.03        $0.03         $0.15         $0.08
                 ------------ ------------ ------------- -------------
 Diluted               $0.03        $0.02         $0.13         $0.07
                 ------------ ------------ ------------- -------------

Weighted average
 shares
 outstanding:
 Basic            17,886,735   15,834,778    16,223,353    15,830,915
                 ------------ ------------ ------------- -------------
 Diluted          21,490,385   21,490,100    21,490,369    21,489,990
                 ------------ ------------ ------------- -------------



                Target Logistics, Inc. and Subsidiaries
                      Selected Balance Sheet Data

                                    June 30,            June 30,
                                      2006                2005
                               ------------------- -------------------
                                   (unaudited)          (audited)

Cash and Cash Equivalents         $     7,015,018     $     6,525,577

Total Current Assets              $    29,797,740     $    28,789,386

Total Assets                      $    45,250,881     $    42,599,718

Current Liabilities               $    23,014,672     $    23,062,048

Long Term Liabilities             $       555,199     $       377,911

Working Capital                   $     6,783,068     $     5,727,338

Shareholders' Equity              $    21,681,010     $    19,159,759

Credit Line Availability          $    11,274,357     $    10,256,965

*T