STG Stonepath Grp.

SEATTLE, April 19 /PRNewswire-FirstCall/ -- Stonepath Group (AMEX:STG), Stonepath Group, Inc. today announced it has yet to file its Annual Report on Form 10-K for the fiscal year ended December 31, 2006 because its current financial condition has not allowed for the engagement of its auditors to perform an audit on its 2006 financial statements. Stonepath's current directors and management continue to evaluate strategic alternatives for the Company, including further restructuring of its obligations, sales of key businesses and working with its primary lender in the U.S., Mass Financial Corp., to provide liquidity support to the Company during this evaluation period. Because these evaluation efforts are ongoing, management presently cannot predict whether or not a Form 10-K will be filed, or if filed when that filing would occur. In light of the possibility that material adjustments to the Company's financial statements could occur as result of an audit of Stonepath's financial statements, current directors and management are not able to present reliable unaudited financial information that would be an appropriate basis for investment decisions. Due to the Company's inability to provide further guidance regarding the above matters, the American Stock Exchange has suspended trading in the Company's securities. About Stonepath Group Stonepath Group is a global, third-party logistics organization providing a full range of transportation and distribution solutions to multinational and local businesses including a diverse client mix of retail leaders, automotive and technology concerns, government agencies, and defense contractors. 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 results, levels of activity, events, trends or plans. We have based these forward- looking statements on our current expectations and projections 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. Although it is impossible to identify all of the other 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) our ability to sustain an annual growth rate in revenue consistent with recent results, (ii) our ability to achieve our targeted operating margins, (iii) our ability to compute our restructuring efforts within the costs we now expect, (iv) our ability to realize the planned benefits from our restructuring efforts, (v) our dependence on certain large customers, (vi) our dependence upon certain key personnel, (vii) an unexpected adverse result in any legal proceeding, (viii) competition in the freight forwarding, logistics and supply chain management industry, (ix) the impact of current and future laws affecting the Company's operations, (x) adverse changes in general economic conditions as well as economic conditions affecting the specific industries and customers we serve, and (xi) regional disruptions in transportation. Other factors that might cause or contribute to such a discrepancy between expected and actual results include, but are not limited to, those factors identified in our Securities and Exchange Commission filings (including our Annual Report on Form 10-K for 2005), other public documents and recent press releases, which can be found on our corporate web site, http://www.stonepath.com/. 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. For further information contact: DATASOURCE: Stonepath Group CONTACT: Stonepath Group, +1-206-336-5400, Web site: http://www.stonepath.com/

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