SOURCE: Greystone Logistics, Inc.

January 14, 2008 11:53 ET

Greystone Logistics Reports Unaudited Results for the Quarter & Six Month Period Ending November 30, 2007

TULSA, OK--(Marketwire - January 14, 2008) - Greystone Logistics, Inc. (OTCBB: GLGI) released unaudited results for the quarter and six months ended November 30, 2007. Sales were $5,246,063 with EBITDA for the quarter of $734,464. Operating profit for the quarter was $572,633 with a net income before preferred dividends of $279,566. Net income available to common shareholders after preferred dividends was $157,458.

Sales were $10,843,275 for the six months ending November 30, 2007 compared to $6,490,831 for the same period last year for an increase of 67%. The increase is primarily attributable to new customers, production of the beverage pallets for existing clients, upward price adjustments, and increases in pharmaceutical pallet sales. Greystone's EBITDA (earnings) (loss) before interest (including preferred dividends), income taxes, depreciation, and amortization for the six months ended November 30, 2007 was $1,425,962. After deducting preferred dividends, the net income available to common shareholders was $189,130, or $0.01 per share, in the first six months of the fiscal year compared to a net loss available to common shareholders of $(1,678,578), or $(0.07) per share, in the prior fiscal year.

"Greystone's sales, earnings, and EBITDA continued to grow in the company's second quarter as we managed the business towards our business plan targets. Volume in the pharmaceutical sector and particularly with Canadian generic drug giant Apotex showed strong increases. Beverage pallet sales continue to be strong and our sales team is leveraging our time tested, world class pallet designs and relationships with current customers into new opportunities in the US, Canada, and Australia," stated Warren Kruger, Greystone CEO. Kruger continued, "Our operations group is aggressively managing costs and finding methods, sources, and opportunities to maintain resin price stability and in some cases, lower our single biggest product cost-recycled plastic."

NON-GAAP Financial Measure

This release contains disclosure of EBITDA, which is a non-GAAP financial measure with the meaning of Regulation G promulgated by the Securities and Exchange Commission. A reconciliation of EBITDA to net income (loss) available to common shareholders before income taxes, the most directly comparable GAAP financial measure, as well as additional information concerning EBITDA, are included at the end of this release.

This press release includes certain statements that may be deemed "forward-looking statements" within the meaning of the federal securities laws. All statements, other than statements of historical facts that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, including the potential sales of pallets or other possible business developments are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, including the ability of the company to continue as a going concern. Actual results may vary materially from the forward-looking statements. For a list of certain material risks relating to Greystone and its products, see Greystone's Form 10-KSB for the period ended November 30, 2007.

                          Greystone Logistics, Inc.
                 Condensed Consolidated Statements of Operations


                                                   Six Months Ended
                                                      November 30,
                                             -----------------------------
                                                 2007              2006
                                             -----------       -----------

Sales                                        $10,843,275       $ 6,490,831

Gross Profit                                   1,811,512           114,095

Operating Profit (Loss)                        1,031,154          (788,650)

Net Income (Loss)                                472,170        (1,391,318)

Preferred Dividends                             (283,040)         (287,260)

Net Income (Loss) to Common Shareholders         189,130        (1,678,578)

Per Share of Common Stock,
  Basic and Diluted                                 0.01             (0.07)

Average Shares of Common Outstanding
   Basic                                      26,061,000        24,061,000
   Diluted                                    26,155,000        24,061,000


Supplemental Statistical Information

Net Income (Loss) to Common Shareholders     $   189,130       $(1,678,578)
Add Back:
   Interest expense, including preferred
    dividends                                    910,175           892,141
   Provision for income taxes                          -                 -
   Depreciation and amortization                 326,657           419,950
                                             -----------       -----------

EBITDA (A)                                   $ 1,425,962       $  (366,487)
                                             ===========       ===========



                                                  Three Months Ended
                                                      November 30,
                                             -----------------------------
                                                 2007              2006
                                             -----------       -----------
Sales                                        $ 5,246,064       $ 2,609,697

Gross Profit (Loss)                              940,784          (266,107)

Operating Profit (Loss)                          572,633          (714,872)

Net Income (Loss)                                295,566          (989,940)

Preferred Dividends                             (138,108)         (143,356)

Net Income (Loss) to Common Shareholders         157,458        (1,133,296)

Per Share of Common Stock,
  Basic and Diluted                                 0.01             (0.05)

Average Shares of Common Outstanding
   Basic                                      26,061,000        24,061,000
   Diluted                                    26,110,000        24,061,000


Supplemental Statistical Information

Net Income (Loss) to Common Shareholders     $   157,458       $(1,133,296)
Add Back:
   Interest expense, including preferred
    dividends                                    431,175           418,448
   Provision for income taxes                          -                 -
   Depreciation and amortization                 146,868           228,364
                                              ----------       -----------

EBITDA (A)                                   $   735,501       $  (486,484)
                                             ===========       ===========

(A)  EBITDA represents income (loss) before income taxes plus interest,
     depreciation and amortization. The Company has included preferred
     dividends with interest expense. The EBITDA presented above while
     considered the most common definition used by investors and financial
     analysts, may not be comparable to similarly titled measures reported
     by other companies. The Company believes that EBITDA, while providing
     useful information, should not be considered in isolation or as an
     alternative to other financial measures determined under GAAP.

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