US 1 Industries Announces Favorable Litigation Settlement and Comments on Impact of Hurricane Katrina and SOX Deferral

GARY, Ind.--Sept. 20, 2005--US 1 Industries, Inc. (OTCBB:USOO) announced today that one of its subsidiaries, Cam Transport, has settled the previously reported $1.7 million jury verdict entered against it in a personal injury case entitled Bennnett vs. Ridgeway and Cam Transport pending in Allendale County, South Carolina. Under the terms of the settlement, Cam's insurer, American Inter Fidelity Exchange, will make a payment to the plaintiff and Cam will not be required to make any payment. The Company reserved $1.7 million with respect to the verdict in its financial statements for the year ended December 31, 2004. The Company will reverse that reserve in the third quarter ending September 30, 2005.

The Company also commented on the impact of Hurricane Katrina. One of the Company's subsidiaries had an office in Gulfport, MS that was destroyed. The Company has not yet fully assessed the impact of insurance on this loss, but in the event that it is uninsured expects that the loss would generally be not more than $50,000. The Company's shipments to and from the area also have been impacted, and the Company estimates that the likely impact on net income will be in the range of $15,000 to $30,000 per month until business is restored fully. Since most of the Company's customers in the region are large, national companies, the Company does not expect any significant accounts receivable write-downs. Commenting on the hurricane, Michael Kibler stated, "By far the most important aspect of the hurricane is how it impacted our employees and others who lived in the region. We are most thankful that all of our employees and their families are safe."

The Company reiterated its support for the deferral currently under consideration at the Securities & Exchange Commission with respect to the application of internal control documentation and testing requirements to small businesses. The Company estimates that application of the internal control documentation and testing requirements to it will require it to ultimately expend more than $500,000 in implementation costs to reach compliance with SOX regulations. For a company with a market capitalization of less than $14 million, a public float of less than $10 million, and net income of approximately $500,000 (for the most recent quarter), the benefits that might be obtained from those costs simply are not justified. The Company encourages the Commission to defer implementation for at least one year and to consider whether the requirements ever should apply to very small public companies at all.