SOURCE: Cargo Connection Logistics Holding, Inc.

January 16, 2008 12:01 ET

Cargo Connection Logistics Holding, Inc. Eliminates More Than $1 Million in Liabilities

Company Renegotiates Chicago Lease

INWOOD, NY--(Marketwire - January 16, 2008) - Cargo Connection Logistics Holding, Inc. (OTCBB: CRGO) (BERLIN: CD6) (FRANKFURT: CD6) (FRANKFURT: 217026) today announced its subsidiary, Cargo Connection Logistics - International, Inc. has terminated its lease in Chicago with Underwing International for its 92,000 sq. ft. Chicago facility and leased the facility directly from the owner. As a result, the Company has eliminated more than $1 million in current liabilities. Cargo Connection Logistics Holding, Inc. guaranteed the obligations of Cargo Connection Logistics - International, Inc. under the new lease, and certain additional credit enhancement was provided.

"As part of our continuing efforts to improve the Company's financial condition and position, we have negotiated a favorable agreement with all parties involved in the old lease," said Cargo Connection Logistics Holding, Inc. CEO, Jesse Dobrinsky. "In connection with Cargo Connection Logistics - International agreeing to a new ten-year lease, the landlord has forgiven more than $1 million in liabilities. This new lease allows the Company to continue to operate in its current facility without disruption, while also allowing us to unwind a previous related party transaction with Underwing International, LLC."

"The management of MP Cargo has witnessed firsthand the positive developments in our Chicago hub, which has become an increasingly valuable part of our business," said Dobrinsky. "In the last year alone, we have entered into agreements relating to our Chicago facility with Rexam Beverage Can Company, a subsidiary of Rexam PLC, to provide just-in-time inventory and warehouse services, and also with AIT Worldwide Logistics to assist with hub operations for its domestic ground network."

London-based Rexam PLC is one of the world's leading consumer packing groups and the world's leading manufacturer of beverage cans. AIT Worldwide Logistics is one of the top 25 freight forwarders in the United States.

Last week, Cargo announced it had converted an $800,000 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. The Company said this move will both enhance its balance sheet and free up additional working capital.

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; and Pittsburgh, PA. 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

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
--  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,
--  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