SOURCE: Cargo Connection Logistics Holding, Inc.

January 08, 2008 08:30 ET

Cargo Connection Logistics Holding, Inc. Converts Short-Term Obligation to Long-Term Note

$800 Thousand Note With Emplify HR Services, Inc. Will Enhance Company Balance Sheet and Provide Additional Working Capital

INWOOD, NY--(Marketwire - January 8, 2008) - Cargo Connection Logistics Holding, Inc. (OTCBB: CRGO) (BERLIN: CD6) (FRANKFURT: CD6) (FRANKFURT: 217026) today announced it has converted an $800 thousand short-term obligation with Emplify HR Services, Inc. into a four-year secured promissory note, which is guaranteed by certain of the Company's subsidiaries. According to Company Chief Operating Officer, Scott Goodman, this move will not only enhance Cargo's balance sheet but will free up additional working capital.

"We continue to take steps to improve the Company's financial condition," said Goodman. "Less than 40 days ago we replaced a factoring facility that was in place for our primary operating subsidiary with a new factoring agreement with Wells Fargo Business Credit. That agreement not only increased our factoring capacity but provided more favorable terms, including a lower cost of funds.

"This Note is another step the Company is taking to reposition its obligations and enhance its balance sheet allowing the Company to operate and expand its operations in this upcoming year."

Emplify is a privately held company based in Plantation, FL engaged in providing consulting, staffing, process outsourcing, and marketing services to a variety of vertical markets. Cargo has utilized the firm for its staffing services.

About Cargo Connection Logistics Holding, Inc.

The Company, through its subsidiaries Cargo Connection Logistics Corp. and Cargo Connection Logistics - International, Inc., is a leader in world trade logistics. The Company headquarters is in Inwood, NY, and it also has offices in Atlanta, GA; Charlotte, NC; Chicago, IL; Columbus, OH; Miami, FL; New York, NY; Pittsburgh, PA.; and San Jose, CA. Headquartered adjacent to JFK International Airport, the Company is a transportation logistics provider for shipments imported into and exported out of the United States, with service areas throughout the United States and North America. The Company currently provides a comprehensive variety of transportation and warehouse capacity services to shippers throughout the nation. It also operates a bonded General Order warehouse in New York and Container Freight Station operations, which are specifically designed to handle internationally arriving freight for major retail suppliers through its facilities in Florida, Georgia, Illinois, New York and Ohio.

Cargo Connection Logistics' website is www.cargocon.com.

Future-Looking Statements Safe Harbor

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain of the statements contained herein, which are not historical facts, are forward-looking statements with respect to events, the occurrence of which involve risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the Company is detailed from time to time in the Company's reports filed with the Securities and Exchange Commission, including, without limitation:

--  the Company's ability to increase its revenues, including by obtaining
    contacts with foreign shippers and by acquisition of competing businesses
    such as Fleet Global Services, Inc.;
--  the Company's financial condition, including its ability to continue
    as a going concern;
--  the Company's ability to operate in compliance with the terms of its
    financing facilities (particularly the financial covenants);
--  the Company's ability to maintain adequate liquidity and produce
    sufficient cash flow to meet the Company's capital expenditure plans;
--  the number and magnitude of customers;
--  changes in, or the failure to comply with, government and regulatory
    policies;
--  the Company's ability to obtain regulatory approvals and to maintain
    approvals previously granted;
--  uncertainty relating to economic conditions generally and particularly
    affecting the markets in which the Company operates;
--  the effect of the Company being in default on its indebtedness;
--  the Company's ability to raise additional capital, including to the
    extent necessary to consummate its acquisition of Fleet Global Services,
    Inc.;
--  the Company's reliance on key personnel and independent agents;
--  the Company's vulnerability to economic and industry conditions;
--  changes in the Company's business strategy, development plans or cost
    savings plans;
--  the Company's ability to complete acquisitions or divestitures and to
    integrate any business or operation acquired;
--  the Company's ability to enter into strategic alliances or other
    business relationships;
--  the Company's ability to overcome significant operating losses;
--  the frequency and severity of accidents, particularly involving the
    Company's trucking operations;
--  the Company's ability to reduce costs;
--  technological developments and changes in the industry;
--  the Company's ability to develop products and services and to
    penetrate existing and new markets; and
--  changes in the competitive environment in which the Company operates.
    

Contact Information

  • Contact:
    Peter Nasca
    Peter Nasca Associates, Inc.
    954-473-0677 Ft. Lauderdale
    312-527-1044 Chicago