Stonepath Group Announces Senior Management Changes

Stonepath Group (ticker: STG, exchange: American Stock Exchange) News Release – 18-Oct-2004

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Stonepath Group Announces Senior Management Changes; Jason Totah Becomes Chief Executive Officer; Bob Arovas Named President; Dennis Pelino Continues as Chairman

PHILADELPHIA–(BUSINESS WIRE)–Oct. 18, 2004–Stonepath Group (AMEX: STG), the global logistics services organization, today announced several senior management changes including the appointment of Jason Totah as Chief Executive Officer of Stonepath Group and the appointment of logistics industry veteran Bob Arovas as President, a newly created position. Dennis Pelino will continue in his role as Chairman of the Board. The changes reflect Stonepath's commitment to integrating the company's business units into one company under one executive management team and one brand.

Previously, Mr. Totah was CEO of Stonepath's international operations and recently assumed the title of CEO at Domestic Services. Mr. Totah joined Global Transportation Services (acquired by Stonepath in April of 2002) in 1990. He has broad operating experience in domestic and international transportation and logistics and held several senior positions in sales and operations while at Global. Prior to Stonepath, he worked in international logistics for Amoco Petroleum.

Mr. Arovas will play a key role on the Stonepath executive team and will leverage the operating, finance, accounting and integration experience he gained while leading large, diverse global logistics businesses. Mr. Arovas is an industry veteran with 20 years of experience and most recently served as President and CEO of GeoLogistics, one of the largest, non-asset based global logistics providers. Prior to GeoLogistics, he served as CFO of BAX Global and Fritz Companies.

Dennis Pelino, Chairman of the Board, in announcing the organizational changes, stated, "The financial performance of our domestic organization calls for change in our management structure, changes that will set Stonepath on the right track for future growth, stability and profitability. Stonepath is a growing business with a bright future. We are closing business every day, developing new lines of business, entering new industry verticals, strengthening our operations, streamlining our management reporting structure and implementing changes that will result in Stonepath being a better and stronger company."

Pelino continued: "Jason Totah is a proven leader and a consummate "hands on" executive who understands how to build and operate a profitable, global logistics enterprise. With Jason as CEO, we are putting our logistics operations under one proven executive who will oversee the functional and operational integration of the divisions. He will also focus on strategic issues to ensure continued growth, maximize shareholder value and insure that we are properly enhancing our client relationships."

Pelino continued: "I am thrilled about Bob Arovas joining the Stonepath organization. Bob brings tremendous industry experience and knowledge and he will provide Stonepath with a unique set of skills developed as a senior logistics executive who has worn many hats in the executive ranks of large public and private firms. He will complement the strength of our existing senior management team."

Pelino closed, "With this executive team in place and the changes we are making across the organization to solidify our operating platform, we are becoming a stronger, and more competitive business – confident in our future and more determined than ever to meet and surpass our goals."

About Stonepath Group (AMEX:STG)

Stonepath Group (www.stonepath.com) is a global logistics services organization that offers a full-range of time-definite transportation and distribution solutions to a wide range of global and local businesses. For more information about Stonepath Group and Stonepath Logistics, please contact John Brine at (212) 254-8280.

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 the restatement of our financial statements for past periods, as well as regarding future results, levels of activity, events, trends or plans. We have based these forward-looking statements on our current expectations and projections about the outcome of our continuing analysis with respect to the restatement of our financial statements, as well as about such future results, levels of activity, events, trends or plans. 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, events, trends or plans to be materially different from any future results, levels of activity, events, trends or plans expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "guidance," "may," "will," "should," "could," "would," "expect," "plan," "anticipate," "believe," "estimate," "continue," or the negative of such terms or other similar expressions. While it is impossible to identify all of the factors that may cause our actual results, levels of activity, events, trends or plans to differ materially from those set forth in such forward-looking statements, such factors include the inherent risks associated with: (i) the need to determine the precise amount of our under accrual for the costs of purchased transportation, (ii) the impact that such under accrual will have on our historical financial condition and results of operations, (iii) the continued willingness of our lender to cooperate with us and to grant any waivers required under our credit facility, (iv) our ability to recover from the former shareholders of our Domestic Services unit the amount of any excess earn-out payments made to them, and (v) other factors which are or may be identified from time to time in our Securities and Exchange Commission filings and other public announcements. There can be no assurance that these and other factors will not affect the accuracy of such forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date made. We undertake no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of unanticipated events.

CONTACT: Stonepath Group
John Brine, 212-254-8280

SOURCE: Stonepath Group

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Stonepath Group's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.