SOURCE: Cargo Connection Logistics Holding, Inc.

March 06, 2008 08:30 ET

Cargo Connection Logistics Holding, Inc. Renegotiates Georgia Facility Lease

Company Negotiates Extension to Existing Lease -- Agrees to New, More Favorable Lease for Atlanta Operations

INWOOD, NY--(Marketwire - March 6, 2008) - Cargo Connection Logistics Holding, Inc. (OTCBB: CRGO) (BERLIN: CD6) (FRANKFURT: CD6) (FRANKFURT: 217026) today announced that its Cargo Connection Logistics Corp. subsidiary successfully renegotiated its lease with LIT/Hodges Industrial Trust for its 27,520 sq. ft. Atlanta facility. As a result of the negotiations, the Company extended its current lease, which runs through June 30, 2008, for ten years. In addition, it has successfully lowered its monthly rental payments effective immediately.

"As part of our continuing efforts to improve the Company's financial condition, we have negotiated a very favorable agreement with LIT/Hodges Industrial and look forward to continuing our relationship with them," said Jesse Dobrinsky, CEO of Cargo Connection Logistics Holding, Inc.

"By agreeing to this ten-year lease extension, the Company is committed to the Atlanta marketplace and will continue to operate in its current facility without disruption," said Christopher Madden, Cargo Connection Logistics Corp.'s director of operations. "Our Atlanta hub has become a valuable part of our Company and we are seeking to expand operations and services offered to our customers from this facility."

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 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