Velocity Systems Announces Management Appointments

WESTPORT, Conn.--(BUSINESS WIRE)--Velocity Systems Franchising Corporation (VSFC) a subsidiary of Velocity Express Corporation (NASDAQ:VEXP), the nation's largest provider of time definite regional delivery solutions, announced the appointment of key personnel to manage the Company’s licensing subsidiary and projected target markets for the franchise offerings.

“We expect to have our initial target markets under franchise agreements by our target date. These markets include Columbus, OH, Pensacola, FL, Memphis, TN, St. Louis, MO and Kansas City, MO”

Drew Kronick, President of VSFC, announced the appointment of Stuart Hyden as the Senior Vice President of Franchise Operations. “Stuart came to Velocity through the merger with CD&L, Inc in 2006 where he served as the company’s Vice President of Sales and Marketing, as well as Executive Vice President of CD&L Logistics, a division which he launched and managed during his tenure with CD&L. I am pleased to have Stuart as part of our team.”

Mr. Hyden commented, “I believe we have created a unique offering within our industry that combines the flexibility and autonomy of a traditional agency relationship with the benefits of a structured franchising environment. The enthusiasm and excitement expressed by potential licensees to our offering is directly attributable to this distinctive approach to franchising.” Mr. Hyden then announced the appointment of Carlos Delgado as Vice President of Franchise Operations and Brett Causin as Director of Compliance and Implementation. Both Mr. Delgado and Mr. Causin previously were with CD&L, where they worked with Mr. Hyden in the company’s logistics division and served in operational roles.

Mr. Kronick also outlined the company’s objective to have franchisees established in five (5) important markets by October 1, 2007. “We expect to have our initial target markets under franchise agreements by our target date. These markets include Columbus, OH, Pensacola, FL, Memphis, TN, St. Louis, MO and Kansas City, MO,” he said.

About Velocity Express

Velocity Express has one of the largest 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, providing customers with the reliability and information they need to manage their transportation and logistics systems, including a proprietary package tracking system that enables customers to view the status of any package via a flexible web reporting system.

Certain statements in this release may be “forward-looking statements” within the meaning of Section 27A of the Securities and Exchange Act of 1933, such as the ability of the Company to develop franchise agreements with local and regional delivery companies in the target markets. Statements regarding future developments are based on current expectations and involve certain risks and uncertainties that could cause actual results and developments to differ materially from the forward-looking statements. Such risks include the risks that the Company will be unable to expand its delivery network by signing five new franchisees in the target markets by October 1, 2007 and other risks and uncertainties which are more fully described in the company’s Uniform Franchise Offering Circular and the Company’s filings with the SEC.