SOURCE: Power2Ship, Inc.

September 19, 2006 09:15 ET

Power2Ship Reaches Agreement With Cornell Capital Partners

BOCA RATON, FL -- (MARKET WIRE) -- September 19, 2006 -- Power2Ship, Inc. (OTCBB: PWRI), the provider of a web-based, patent-pending, software application for the freight transportation industry, reached an agreement with Cornell Capital Partners, LP and its affiliate Montgomery Equity Partners, Ltd. (together "Cornell"), to amend certain provisions in its outstanding debentures held by Cornell. Cornell has agreed to forego exercising its rights of conversion under the debentures until November 1, 2006, for which the Company re-paid $100,000 of the balance due on the debentures, and to forego exercising its rights of conversion from November 1 until January 1, 2007 upon the Company re-paying an additional $100,000 of the balance due on the debentures on November 1, 2006. In addition, the Company agreed to amend the conversion price of $350,000 of its debentures held by Cornell from approximately $0.27 per share to the lesser of i) $0.456 per share or ii) 100% of the average of the three lowest closing bid prices for our common stock, as quoted by Bloomberg, LP, for the 30 trading days immediately preceding any conversion date.

About Power2Ship, Inc.

Power2Ship (P2S) created the MobileMarket™, a web-based application that specializes in the collection and processing of real-time transportation information using proprietary, event-driven software that optimizes the utilization of transportation assets and provides exception-based information to trading partners. P2S' services are offered to the supply chain management industry including manufacturers and distributors of goods as well as service providers that transport goods. In addition, P2S has two wholly owned subsidiaries, Commodity Express Transportation, which operates a fleet of tractors and trailers, a freight brokerage and a warehouse operation, and Power2Ship Intermodal, which is a non-asset based drayage company that arranges the transportation of freight containers arriving at various ports and rail terminals. P2S also is seeking to incorporate the P2S MobileMarket™ into solutions that address global transportation security issues by collaborating with various technology and defense companies. Finally, P2S continues to pursue merger, acquisition, and joint venture opportunities with strategic third party providers in the supply chain arena.

This press release includes certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, statements regarding our current business plans, strategies and objectives that involve risks and uncertainties that could cause actual results to differ materially from anticipated results. The forward-looking statements are based on our current expectations and what we believe are reasonable assumptions; however, our actual performance, results and achievements could differ materially from those expressed in, or implied by, these forward-looking statements. Factors, within and beyond our control, that could cause or contribute to such differences include, among others, the following: we have a history of losses and an accumulated deficit, expect losses to continue for the foreseeable future and will need to raise additional working capital in order to implement our business model and sustain our operations; the loss of one or more of our major customers could materially and adversely effect our future revenue and business operations; as well as those factors discussed under "Risk Factors" in our prospectus filed on May 15, 2006 and various disclosures in other reports filed from time to time with the United States Securities and Exchange Commission.

Contact Information

  • For further information about Power2Ship contact
    Richard Hersh
    Chairman & CEO
    (866) 998-7557
    (561) 998-7557
    email: rhersh@power2ship.com