**Exhibit 99.1**     **For Immediate Release** Contact: John Brine    (212)254-8280**STONEPATH GROUP REPORTS Q1 2006 RESULTS****Continued Strength in Asia Fuels 15% Top Line Gain for International Division** SEATTLE, WA, May 12, 2006 — Stonepath Group (AMEX: STG), a global logistics services organization,today reported financial results for the quarter ended March 31, 2006.For the first quarter of 2006, Stonepath reported revenue of $92.2 million, an improvement of 2.4%compared to the prior year period.International revenues increased 15.5% to $66.5 million, while the Company’s Domestic segmentrevenues declined 20.8% to $25.7 million for the quarter. The Domestic segment continued to beimpacted by the difficult economic conditions in the U.S. automobile industry and reduced volumefrom a major national retail customer. The Company attributes international revenue growth tocontinued sales volume increases from its Asia-based businesses.Net revenues were $19.5 million, a $0.9 million decrease or 4.4% compared to the prior year period.The International Services segment delivered $9.9 million of net revenue in the first quarter of2006, a period over period improvement of $0.3 million or 3.7%. The Company’s Domestic Servicessegment delivered $9.6 million of net revenue in the first quarter of 2006, a decline of $1.2million or 11.2% over the same prior year period.The net revenue decreases were due to domestic volume reductions, as discussed above, that werepartially offset by margin improvements. Domestic margins improved to 37.3% of revenues in thefirst quarter compared to 33.3% for the comparable period in 2005, principally due to reductions inlower margin business. International margins decreased to 15.0% of revenues compared to 16.7% ofrevenues for the comparable period in 2005. Lower international margins were due to decreasedmargins within the Company’s China operations.Stonepath continued to see progress from its restructuring efforts, including a decrease inpersonnel costs of 6.7% due to improved productivity and reduced staffing driven by lower DomesticServices revenues. Additionally, other selling, general and administrative costs decreased 16.8%for the quarter, primarily attributable to lower facilities expenses and lower legal and accountingrelated expenses compared to first quarter of 2005.The Company reported a net loss of $3.5 million, or $(0.08) per basic and diluted share. Thiscompares to a net loss of $7.6 million, or $(0.17) per basic and diluted share for the same prioryear period.Included in the Company’s net loss for the first quarter is a $0.3 million charge relating toaccounting for derivatives contained in certain of our financing agreements and approximately $0.5million of expense relating to provisions contained in our U.S. credit facility for the payment ofliquidated damages in the event an effective registration statement is not provided to the lenderwithin specified timelines. The net loss in 2005 includes restructuring charges of $3.3 million.“Our first quarter results, generally our weakest due to seasonality, were neverthelessdisappointing,” said Dennis L. Pelino, Stonepath’s Chairman. “We are entirely focused on improvingour performance going forward and we continue to implement strategic initiatives throughout theCompany to create long-term value for our customers and shareholders.”Pelino added, “The explosive economic markets of the Asia Pacific region, specifically the PRC,offer continued growth opportunities for global logistics service providers, and we are aligningStonepath to capitalize on these trends in increased trade while working to improve our margins inour China business.”Jason Totah, Chief Executive Officer, continued, “Our focus remains on developing new customerpartnerships that will successfully leverage our strong service suite of global, integratedlogistics solutions.”**About Stonepath Group (AMEX:STG)**Stonepath (www.stonepath.com) is a global, third-party logistics organization providing a fullrange of transportation and distribution solutions to multinational and local businesses includinga diverse client mix of retail leaders, automotive and technology concerns, government agencies,and defense contractors. Through strategic acquisitions and organic growth, the Company hasexpanded rapidly, establishing a network of owned operations throughout the U.S., the Asia-Pacificregion and Latin America. For more information
 

 
about the Company, please contact John Brine at (212) 254-8280.*This Press Release includes forward-looking statements within the meaning of Section 27A of theSecurities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934, asamended, regarding future results, levels of activity, events, trends or plans. We have based theseforward-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 guaranteesand are subject to known and unknown risks, uncertainties and assumptions about us that may causeour actual results, levels of activity, events, trends or plans to be materially different from anyfuture results, levels of activity, events, trends or plans expressed or implied by suchforward-looking statements. In some cases, you can identify forward-looking statements byterminology such as “guidance,” “may,” “will,” “should,” “could,” “would,” “expect,” “plan,”“anticipate,” “believe,” “estimate,” “continue” or the negative of such terms or other similarexpressions. Although it is impossible to identify all of the factors that may cause our actualresults, levels of activity, events, trends or plans to differ materially from those set forth insuch forward-looking statements, such factors include the inherent risks associated with: (i) ourability to sustain an annual growth rate in revenue consistent with recent results, (ii) ourability to achieve our targeted operating margins, (iii) our ability to compute our restructuringefforts within the costs we now expect, (iv) our ability to realize the planned benefits from ourrestructuring efforts, (v) our dependence on certain large customers, (vi) our dependence uponcertain key personnel, (vii) an unexpected adverse result in any legal proceeding, (viii)competition in the freight forwarding, logistics and supply chain management industry, (ix) theimpact of current and future laws affecting the Company’s operations, (x) adverse changes ingeneral economic conditions as well as economic conditions affecting the specific industries andcustomers we serve, and (xi) regional disruptions in transportation. Other factors that might causeor contribute to such a discrepancy between expected and actual results include, but are notlimited to, those factors identified in our Securities and Exchange Commission filings (includingour Annual Report on Form 10-K for 2005), other public documents and recent press releases, whichcan be found on our corporate web site*, *www.stonepath.com. Readers are cautioned not to placeundue reliance on forward-looking statements, which speak only as of the date made. We undertake noobligation to publicly release the result of any revision of these forward-looking statements toreflect events or circumstances after the date they are made or to reflect the occurrence ofunanticipated events.*# # #