Stonepath Logistics Joint Venture To Provide Expedited Services For Top Automotive Players

PHILADELPHIA--Aug. 4, 2003--Stonepath Logistics, a global logistics services provider, today announced that its joint venture, MagRabbit-UAFS, LLC, a minority business enterprise, has secured and signed master freight agreements through National Logistics Management, Inc. (NLMI) with Ford Motor Company, DaimlerChrysler/Menlo Logistics, and General Motors North America/Vector SCM.

MagRabbit-UAFS, LLC is a joint venture created via the Austin, Texas-based minority-owned third-party logistics business MagRabbit, Inc. and UAFS, Stonepath's Detroit-based automotive division. The joint venture will provide the big three auto makers with premium freight services through NLMI as well as additional expedited logistics solutions.

Dennis L. Pelino, Chairman and CEO of Stonepath Group remarked, "We're very pleased with the success we're having with our joint venture. Minority-owned enterprises face numerous challenges and I am confident that our partnership is helping them to gain access to a much larger business base. Many corporations, such as our automotive clients, are working diligently to increase their business relationships with first-class diversity suppliers and by joining forces, Stonepath and MagRabbit have an opportunity to be enormously productive."

Tommy Hodinh, Chairman and CEO of MagRabbit, stated, "Through our partnership with Stonepath and UAFS, we are in a much better position to win global projects that were previously out of our reach. With Stonepath's global network and breadth of service offerings, MagRabbit is in a very competitive position."

Stonepath's joint venture with MagRabbit was recently certified by the Central and South Texas Minority Business Council, an affiliate of the National Minority Development Council (NMSDC). The certification is a major step forward for the partnership, enabling Stonepath Logistics' operating divisions, and MagRabbit, to co-market a full range of domestic and international customized logistics services. Headquartered in New York City, the NMSDC is a nationwide non-profit organization devoted to assisting corporations and minority suppliers do business together.

About MagRabbit, Inc.

MagRabbit, Inc. (http://www.magrabbit.com) is a third-party logistics (3PL) provider that specializes in value added logistics management, fulfillment and transportation services. MagRabbit has received numerous accolades for its excellence including the "2001 Minority Supplier of the Year" Award from the National Minority Supplier Development Council, the SBA's (Small Business Administration) "2002 Administrator's Award for Excellence," and Dell Computer Corporation's 2001 "Diverse Supplier of the Year" Award.

National Logistics Management, Inc.

National Logistics Management, Inc. (NLMI) is a third party logistics provider that offers web based support for expedited air and ground shipments.

About Stonepath (AMEX:STG)

Stonepath Logistics (www.stonepath.com) is a global logistics services organization that integrates established logistics companies with innovative technologies. Through its subsidiaries, Stonepath offers a full range of time-definite transportation and distribution solutions. Stonepath's Detroit-based automotive division provides a full-range of time-definite logistics services for the automotive industry. For more information about Stonepath, please contact John Brine, 212-254-8280.