Radiant Logistics Launches Automotive Services Division

Auto Industry Veteran Rick Manner to Lead Integration of Assets to be Purchased From Mass Financial in Connection With Former Automotive Operations of Stonepath Group

BELLEVUE, Wash., May 23 /PRNewswire-FirstCall/ -- Radiant Logistics, Inc. (BULLETIN BOARD: RLGT) , a domestic and international freight forwarding and logistics services company, today announced the launch of a new logistics services offering focused on the automotive industry. The new group will operate as a division within Radiant Logistics Global Services, Inc. ("RLGS") with offices in Detroit and Milwaukee and leverage the extensive global network and minority business platform available through Radiant Logistics and its affiliates.

In connection with the launch of its automotive services division, RLGS has entered into an agreement with Mass Financial Corp. ("Mass") to acquire certain assets formerly used in the operation of the automotive division of the Stonepath Group (the "Purchased Assets"). In its capacity as a senior secured creditor, Mass has agreed to sell RLGS the Purchased Assets in connection with a foreclosure and disposition process that began on April 17, 2007. The transaction is valued at up to $2.75 million, consisting of a $100,000 deposit, $150,000 to be paid at closing and an additional $2.5 million payable in future periods based on the financial performance of the new division. Closing of the transaction is expected to occur within the next 90-120 days and is subject to a number of conditions to closing. During the interim period pending the closing, RLGS has agreed to operate the Purchased Assets within its Automotive Services Division.

According to Bohn Crain, Chairman and CEO of Radiant, "Acquiring these assets represents a unique opportunity for us as we launch a new service offering focused on the automotive vertical. Based upon (1) our familiarity with the industry and its business requirements, (2) the expansive network available to us through Airgroup and (3) our ability to service this business through our affiliated minority business enterprise, we feel we are well positioned to create some real value for customers. It is now up to us to win the business in the automotive space. Our new team in Detroit is battle- hardened, relentless in their approach to customer service and looking forward to the challenges ahead."

About Radiant Logistics (BULLETIN BOARD: RLGT)

Radiant Logistics (http://www.radiant-logistics.com/) is executing a strategy to build a global transportation and supply chain management company through organic growth and the strategic acquisition of regional best-of-breed non-asset based transportation and logistics providers to offer its customers domestic and international freight forwarding and an expanding array of value added supply chain management services, including asset recovery and reverse logistics, order fulfillment, inventory management and warehousing.

This press release includes 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, regarding future operating performance, events, trends and plans. We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are not guarantees and are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Important factors relating to the proposed transaction covered by this release that could cause our actual results to differ from our expectations, include but are not limited to our ability to complete the pending transaction as contemplated, with the recognition that closing is subject to a number of conditions, including securing certain bankruptcy court approvals, certain of which may be beyond our control. Furthermore, we are not in a position to estimate the revenue or profitability that we can generate from the acquired asset base because, among other things, the nature of the foreclosure process. Other important factors that could cause our actual results to differ from our expectations, include but are not limited to those risk factors disclosed in our Transition Report on Form 10-K for the year ended June 30, 2006 and other filings with Securities and Exchange Commission and other public documents and press releases which can be found on our web-site (http://www.radiant-logistics.com/). Readers are cautioned not to place undue reliance on our forward-looking statements, as they speak only as of the date made. Such statements are not guarantees of future performance or events and we undertake no obligation to disclose any revision to these forward-looking statement to reflect events or circumstances occurring after the date hereof.

Source: Radiant Logistics, Inc. ‹ previous  •  1137 of 12885  •  next ›