Janel World Trade Reports Record Revenues

Janel World Trade, Ltd., a full-service global provider of integrated transportation logistics services, reported record revenue of $82,745,383, up 10% or $7,797,941, as compared to fiscal 2007 revenue of $74,947,442.

Net revenue (revenue minus forwarding expenses) also reached a record of $9,786,142, up 20% from the prior year's level of $8,172,364. [Forwarding expense primarily comprises fees paid by Janel directly to cargo carriers to handle and transport its actual freight shipments on behalf of its customers between initial and final terminal points.]

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Janel World Trade, Ltd., a full-service global provider of integrated transportation logistics services, reported record revenue of $82,745,383, up 10% or $7,797,941, as compared to fiscal 2007 revenue of $74,947,442.

Net revenue (revenue minus forwarding expenses) also reached a record of $9,786,142, up 20% from the prior year's level of $8,172,364. [Forwarding expense primarily comprises fees paid by Janel directly to cargo carriers to handle and transport its actual freight shipments on behalf of its customers between initial and final terminal points.]

The strong revenue gain was the result of increased shipping activity throughout the year and across essentially all of the principal industry sectors served by the company, with particularly strong margins on customer shipments related to food and promotional materials. The revenue gain also reflects approximately 2-1/2 months of additional business stemming from the company's acquisition of the Ferrara International Logistics (Ferrara) business in mid-July 2008.

"We are very pleased with the growth of our revenue, especially during these economic times," stated James N. Jannello, CEO. "We attribute this gain to the expanded services offered through our recent acquisitions of Order Logistics Inc. (OLI) and Ferrara, as well as to our efforts to expand our customer base and improve our margins. Our logistics net revenue increased by 14% to another record, benefiting from the greater volume of freight we have handled as well as an increase in the average logistics margin earned on those shipments to 11.31% in fiscal 2008, up 41 basis points from the 10.90% margin achieved in fiscal 2007. As a result, our logistics operating income jumped 31% year over year.

"We are benefiting from the addition of OLI's web-based supply chain technology solution Solve (IT)2, which allows us to provide our customers with comprehensive end-to-end visibility and collaboration in planning, executing, managing and tracking shipments, financial settlement, procurement and quality control activities on a worldwide basis. At the same time, Ferrara is enhancing our entry and logistical capabilities in food transportation in new markets such as Italy, Vietnam, Brazil and India, among others. We expect to see these advantages continue to enhance our company's growth."

"However," Jannello continued, "it is important to recognize the substance of the lawsuit we filed in February 2008 against World Logistics Services, Inc., from which the OLI business was acquired in October 2007, alleging their misrepresentation of material facts, which have subsequently impaired OLI's revenue stream and earnings potential compared to the original projections on which the acquisition was predicated.

"We have reported increased SG&A expenses, non-cash charges of $702,846 and a non-cash impairment loss of $1,812,750, all primarily associated with our ownership of OLI. In contrast, on a non-GAAP basis, adjusting EBITDA and excluding the OLI-related impairment and operating losses, Janel would have registered FY 2008 income of $954,369 from its transportation logistics operations. This compares to a non-GAAP EBITDA calculation for fiscal year 2007 of $706,594, a year-over-year increase of $247,775 or 35%."

Jannello added, "We are confident in the strength of our legal position and anticipate a positive outcome in that regard. Going forward, regardless of the resolution of the case, our ongoing amortization expense in fiscal 2009 will be significantly reduced from the fiscal 2008 level as a result of the impairment charge we have already taken. In addition, we have implemented a stringent monthly operating expense budget on OLI as we monitor the situation and take action to strengthen their ongoing performance. We are optimistic that OLI will fulfill the original premise of our acquisition, presenting exciting new opportunities for our company and becoming a viable contributor and valuable asset to Janel's profitability as we go forward."

Jannello concluded, "Despite the economic challenges facing all businesses in the year ahead, we are confident about our company's prospects. We fully expect that our GAAP earnings will rebound in FY 2009 and that we will report a return to our long-term trend of positive growth.

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