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Janel World Trade Announces New $3.5M Credit Line Facility

05 Aug, 2010 @ 07:00 am EDT
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JAMAICA, NY -- (Marketwire) -- 08/05/10 -- Janel World Trade, Ltd. (OTCBB: JLWT), a full-service global provider of integrated transportation, logistics and environmental services, today announced that the Company has entered into a $3.5M revolving line of credit agreement with Community National Bank (CNB) providing the Company with increased financial flexibility and capacity for future growth and profitability.

The new credit facility (CNB Facility) replaces the term loan with JPMorgan Chase Bank, N.A. (Chase) and eliminates the required monthly installments under the term loan. In addition, the Company can borrow the lesser of $3.5M or 80% of the company's aggregate outstanding eligible accounts receivable which were not available with Chase. On August 3, 2010, the Company used $951,355 of the CNB facility to pay off the term loan with Chase and after that there was approximately $2,493,000 available for borrowing under the CNB Facility. The CNB Facility bears an interest rate of prime plus 1% with a minimum rate of 5% which is 1.25% less than the current rate with Chase.

The CNB Facility is for a one year term and is guaranteed by the company, its subsidiaries and James N. Jannello, the Company's Executive Vice President and Chief Executive Officer.

Philip Dubato, Executive Vice President of Finance for Janel said, "This new credit facility provides us with the additional borrowing capacity we need and is the first step toward further growth and expansion of our core business and support's our corporate objective of becoming a rapidly growing, highly competitive and profitable global company."

Regarding the announcement, James N. Jannello, the Company's Executive Vice President and Chief Executive Officer said, "This new credit line will certainly enhance our flexibility and provide additional support as we continue to expand in the global logistics market place that is forecast to reach $1,046 Billion* by 2012."

* http://www.prlog.org/10353214-global-logistics-market-forecast-to-reach-10406-billion-by-2012-says-new-report.html

To be included in Janel's database for Corporate Press Release and industry updates, investors are invited to send their e-mail address to: IRInfo@janelgroup.net.

About Janel World Trade, Ltd.

Janel World Trade, Ltd. is a global provider of integrated logistics and environmental services, including domestic and international freight forwarding via multi-modal carriers, leading-edge, end-to-end, supply-chain technology, customs brokerage, warehousing and distribution, and other transportation-related services. With offices throughout the U.S. (New York, Chicago, Los Angeles, and Atlanta), the Far East (Hong Kong, Shanghai, and Shenzhen) and Central America (El Salvador, Honduras and Guatemala) , the Company provides the comprehensive logistics services and technology necessary to handle its customers' shipping needs throughout the world. Cargo can be transported via air, sea or land, and Janel's national network of locations can manage the shipment and/or receipt of cargo into or out of any location in the United States. Janel is registered as an Ocean Transportation Intermediary and licensed as a FMC Licensed Freight Forwarder by the Federal Maritime Commission. The Company also provides a comprehensive menu of global environmental remediation services through its Special Projects Division, headquartered in Champaign, IL. This Division is currently working on environmental projects in Central America, Russia and China.

Janel World Trade, Ltd.'s headquarters is located in Jamaica, New York, adjacent to the JFK International Airport, and its common stock is listed on the OTC Bulletin Board under the symbol "JLWT". Additional information on the Company is available on its website at http://www.janelgroup.net

About Community National Bank

Community National Bank is a Long Island based independent commercial bank and operates seven locations in Nassau and Suffolk counties. We offer a full range of modern financial services, backed by state-of-the-art technology. In addition to commercial loans, commercial mortgages, small business loans and lines of credit, residential mortgages, CNB also provides a complete selection of traditional personal and commercial deposit products such as no fee individual and business checking accounts, IRA accounts and statement savings.

Forward-Looking Statements

This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "intend," "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, the Company's dependence upon conditions in the air, ocean and land-based freight forwarding industry, the size and resources of many competitors, the need for the Company to effectively integrate acquired businesses and to successfully deliver its primary services, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission, including its most recent Form 8-K, Form 10-Q and Form 10-K filings. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

Contact:
Investor Relations
Janel World Trade
(404) 261-1196
IR_Janelgroup.net

For more information, go to www.marketwire.com
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