SOURCE: Cargo Connection Logistics Holding, Inc.

December 04, 2007 08:30 ET

Cargo Connection Logistics Holding, Inc. Announces Steps to Improve Operations and Facilitate Growth

INWOOD, NY--(Marketwire - December 4, 2007) - Cargo Connection Logistics Holding, Inc. (OTCBB: CRGO) (BERLIN: CD6) (FRANKFURT: CD6) (FRANKFURT: 217026) today provided an update on several areas of great interest relating to the Company, its operations and its anticipated future growth.

Jesse Dobrinsky, the Chairman and CEO of the Company, stated that:

"In our continuing efforts to increase the value of the Company to our stockholders, we have taken several recent steps that have improved the Company's financial condition, operations and prospects, including:

--  We have replaced the factoring facility that was in place for our
    Cargo Connection Logistics Corp. subsidiary, our primary operating
    subsidiary.  We have entered into a new factoring agreement with Wells
    Fargo Business Credit, which increases our factoring capacity and provides
    more favorable terms, including a lower cost of funds.
--  In addition, we have jettisoned certain portions of our business that
    were not profitable and have replaced them with business that provides a
    positive return for the Company.  Through this process we are also reducing
    our dependence on some of our larger customers, making us less vulnerable
    to the impact of any major customer on our revenues and earnings.
--  We have amicably resolved a dispute with the landlord of our Miami
    facility.
--  We continue to pursue our proposed acquisition of Fleet Global
    Services, Inc.  We recently loaned Fleet Global $300,000 and we received
    from it a one-year promissory note bearing an annual interest rate of 11
    percent.  We expect that amount of the note would be applied toward the
    cash portion of the purchase price of Fleet. We are continuing to attempt
    to raise sufficient capital to fund this acquisition.
--  Once the Fleet Global acquisition is complete, ITG, which is a joint
    venture that the Company had set up for exactly Fleet Global's kind of
    agent operation, will finally have the opportunity to get off the ground.
    We expect that it will get a major boost from Fleet Global's existing
    operations.
--  We have made many sacrifices at the corporate and operational level,
    including payroll reductions and executive salary deferrals.
--  In light of disappointing results in our international division, we
    have furloughed several personnel.  While we still believe that our
    international division has great promise, we intend to continue to approach
    growth in this area of our business cautiously. In the meantime, we have
    directed our focus to growth in domestic sales.
--  We have made concerted efforts to evaluate each aspect of our business
    and in the process we have reduced costs in areas that have not been
    producing sufficient revenue or operating profitability. We continue to
    constantly evaluate each aspect of the Company with respect to its
    performance and sustainability.
--  We have increased head count in our Chicago facility to accommodate
    the new business operations there that began operating in mid 3rd quarter
    2007.
--  We continue to develop and demonstrate a prototype of our new Rad-
    rope™ product to both government and private enterprise potential
    customers, and believe that we have received a great deal of interest in
    this product.  The developer of this technology continues to support the
    device and is assisting in the changes that have been requested by
    potential customers.
--  All executive officers and directors have refrained from selling any
    shares of Company stock
    

Mr. Dobrinsky continued: "In light of all the progress we have made, as described above, we are confident that we are on the right track and that we will succeed. We are continuing to explore new sources of financing, which we expect would be critical to our performance, including allowing us to complete our proposed acquisition of Fleet Global, which we believe in itself would dramatically improve the Company's revenue base, results of operations and financial condition."

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