VEXPQ.PK Sector: Services --- Industry: Air Delivery & Freight Services

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WESTPORT, Conn., Jun 25, 2008 (BUSINESS WIRE) -- Velocity Express Corporation (VEXP, Trade) announced that, because the Company's common stock price closed below $1.00 for thirty consecutive business days, it received a notice on June 19, 2008 from the NASDAQ Stock Market that it is not in compliance with Marketplace Rule 4310(c)(4) regarding the minimum bid requirement for the continued listing of its common stock on the Nasdaq Capital Market.

The Company will have 180 calendar days until December 16, 2008 to regain compliance with the minimum bid requirement which will require that the bid price of the Company's common stock closes at $1.00 per share or more for a minimum of 10 consecutive business days. If the Company is unable to demonstrate bid price compliance by December 16, 2008 but is found to meet all other initial listing requirements for the NASDAQ Capital Market, it may receive an additional 180-day compliance period. If the Company does not meet compliance requirements within the second 180-day period, NASDAQ will notify the Company that its common stock will be delisted. At that time, the Company may appeal the decision to a NASDAQ Listing Qualifications Panel.

In the meantime, Velocity stock will continue to trade on the same NASDAQ Capital Market as it trades today. Some websites and media that publish stock prices may add a suffix to the VEXP stock symbol but these designations have no effect on the trading of the stock.

The Company is actively evaluating and pursuing several options to enable it to maintain its listing with NASDAQ. In particular, Velocity Express Chairman and CEO, Vincent Wasik stated, "We are on track to meet our guidance for positive EBITDA in the June quarter and we are excited by the growth opportunities we see in our sales pipeline for retail store replenishment and healthcare products delivery. Likewise, the successful restructuring in May of our Senior Secured Notes Due 2010 shows the confidence of our lenders in the Company's future success."

SOURCE: Velocity Express Corporation


Velocity Express Corporation 
Edward W. (Ted) Stone, 203-349-4199 
[email protected] 
or 
Institutional Marketing Services (IMS) 
John G. Nesbett, 203-972-9200 
[email protected] 

Copyright Business Wire 2008

[setravis]

Shares of Velocity Express Gain Over 200% on $30M Multiyear Contract...

Wednesday's session was a bit mum while many awaited the
Fed's decision on interest rates. Most felt that the Fed needed
to raise the rates to stay ahead of the inflation curve but knew
they wouldn't. With that in mind, that same group was more
concerned with the rhetoric and the Fed's outlook going forward.
They were pleased with the talk at first. "Downside growth risks have
diminished somewhat and upsides risks to inflation expectations have risen"
were the magic words that investors wanted to hear. Defending the dollar and controlling
inflation would seem to be on the Fed's agenda going forward. But they also added into that
rhetoric that "The committee expects inflation to moderate later this year". With somewhat
contradictory statements, many felt the Fed could be just jawboning to buy some time. Even
so, following the news, the Dow jumped over 50 points before beginning an afternoon consolidation
on fears that the Fed may not actually follow through on its stance.
One name in the small cap space also reported offsetting news to investors. Velocity Express
Corporation (VEXP) is engaged time-definite nationwide delivery networks, providing
a national footprint for customers desiring same day service throughout the United States.
The Company's services are supported by a customer-focused technology infrastructure that
provides customers with the reliability and information they need to manage their transportation
and logistics systems. Velocity uses a proprietary package tracking system that enables
customers to review the status of any package via a flexible web reporting system.
Before the bell, the Company announced that its Nasdaq listing was in jeopardy following its
common stock trading below $1.00 for 30 consecutive business days. The Company will have
180 calendar days until December 16, 2008 to regain compliance with the minimum bid requirement
which will require that the bid price of the Company's common stock close at $1.00
per share or more for a minimum of 10 consecutive business days.
The Company's CEO did note that they were on track to meet guidance for positive EBITDA
in the June quarter and were excited about the sales pipeline.
Thirty minutes after announcing the Nasdaq delisting notice and the comments from the CEO,
the Company reported that it had been awarded a multi-year contract valued in excess of $30
million to service Stage Stores, Inc's, Peebles brand stores throughout the Midwest, Northeast
and Southeast. Velocity will be providing a total transportation solution which will include
daily store replenishment and vendor inbound transportation services to 310 Peebles stores.
Following the news, shares exploded over the $1.00 threshold and gained over 214% on the
day to close at $1.10. Over 1 million shares traded. With the positive news, shares would
need to hold that 1.00 level to keep their Nasdaq listing and with so many entering the name
evident by the volume and the limited number outstanding (2.83 million), the name is certainly
one to follow. Investors would be wise to watch.

[setravis]

Changed Ticker Symbol
VEXP is no longer valid. It has changed to VEXPQ.PK

The ugly chart...