Velocity Express Announces $30 Million Service Agreement with Leading USA Retailer

Business Wire,  June 25, 2008  

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WESTPORT, Conn. -- Velocity Express Corporation (NASDAQ:VEXP), the leading provider of time definite delivery and logistics solutions in the United States, announced today that they have 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.

Stage Stores, Inc., based in Houston, Texas, brings nationally recognized brand name apparel and accessories, cosmetics and footwear to small and midsize towns throughout the United States. From more than 715 stores, the company operates under the "Bealls," "Palais Royal" and "Stage" name throughout the South Central and Southwestern states and under the "Peebles" name throughout the New England, Mid Atlantic, Southeastern and Midwestern states.

Gough Grubbs, SVP Distribution and Logistics for Stage Stores, commented, "We are very excited about our new partnership with Velocity Express. We believe that Velocity's extensive network across our regions, strength of their retail management team, and their retail IT platform make them an excellent long term partner."

Vincent Wasik, CEO of Velocity Express, stated, "We have worked very hard over the last few years to build the infrastructure, management team and IT systems that support the increasing demands of the top retailers in the United States. Our new agreement with Stage is confirmation that the top retailers recognize the value that Velocity brings to this business segment. Stage operates one of the most efficient supply chain networks in the United States, and we are very proud to be associated with Stage."

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 that provides customers with the reliability and information they need to manage their transportation and logistic systems. Velocity uses a proprietary package tracking system that enables customers to review the status of any package via a flexible web reporting system.

Forward-Looking Statements

Certain statements in this press release may constitute "forward-looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and the Company's future performance that are not historical facts are forward looking statements within the meaning of these laws. These forward-looking statements include the fact that a multi-year contract valued in excess of $30 million has been awarded and the fact that the Company's retail IT platform makes it an excellent long-term partner. Forward-looking statements are affected by known and unknown risks that may cause the actual results of the Company to differ materially from any future results expressed or implied by such forward-looking statements. Many of these risks are beyond the ability of the Company to control or predict. Such risks include, but are not limited to, the following: the risk that the multi-year contract may be terminated prior to its scheduled expiration and the risk that the Company's retail IT platform may fail to satisfy retail customer requirements; and the other risks identified in the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended June 30, 2007 and its Quarterly Report on Form 10-Q for the quarter ended March 29, 2008, as well as in the other documents that the Company files from time to time with the Securities and Exchange Commission. Management believes that the forward-looking statements contained in this release are reasonable; however, undue reliance should not be placed on any forward-looking statements contained herein, which are based on current expectations. Further, forward-looking statements speak only as of the date they are made, and management undertakes no obligation to publicly update any of them in light of new information or future events.

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