Greystone Logistics Reports Unaudited Results for Quarter and Fiscal Year Ending May 31, 2008

Greystone Logistics, Inc. (OTCBB: GLGI) announced today unaudited results for the quarter and fiscal year ending May 31, 2008. Operating profit for the 4th quarter was $626,493 with a net income before preferred dividends of $384,450. Net income available to common shareholders after preferred dividends was $279,416 or $0.01 per share.

Net income was $560,306 for the fiscal year ending May 31, 2008 compared to ($3,175,524) for fiscal year 2007 for an increase of $3,735,830. The increase is primarily attributable to the 48x40 molds put into service in the last month of the corporate 4th quarter 2007. The net profit to common shareholders for the year ended May 31, 2008 was $560,306 or $0.02 per share.

Greystone's EBITDA (earnings before interest (including preferred dividends), income taxes, depreciation and amortization) for the year ended May 31, 2008 is $2,984,083 versus ($576,176) for the same period last year.

"The results of Greystone's year end reflect the hard work and dedication of our entire organization in the marketing and manufacturing of our expanded line of 100% recycled plastic shipping pallets," said Warren Kruger, CEO of Greystone Logistics. Kruger continued, "Our recycling department has been so efficient and effective that we have set up a plastic sales arm that is creating incremental revenue and profits in line with our aggressive expectations. Adding recycled resin sales to complement our recycled plastic pallet sales, strengthens our organization in our quest to provide green products and sustainable solutions."

Non-GAAP Financial Measure

This release contains disclosure of EBITDA, which is a non-GAAP financial measure within the meaning of Regulation G promulgated by the Securities and Exchange Commission. A reconciliation of EBITDA to net income (loss) available to common shareholders before income taxes, the most directly comparable GAAP financial measure, as well as additional information concerning EBITDA, are included at the end of this release.

This press release includes certain statements that may be deemed "forward-looking statements" within the meaning of the federal securities laws. All statements, other than statements of historical facts that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, including the potential sales of pallets or other possible business developments, are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, including the ability of the company to continue as a going concern. Actual results may vary materially from the forward-looking statements. For a list of certain material risks relating to Greystone and its products, see Greystone's Form 10-KSB for the period ended May 31, 2008.

                                               Year Ended May 31,
                                          ------------    ------------
                                              2008            2007
                                          ------------    ------------
Sales                                     $ 21,081,114    $ 12,454,293

Gross Profit (Loss)                          3,813,561         866,236

Operating Profit (Loss)                      2,130,252        (962,159)

Net Profit (Loss)                            1,068,997      (2,599,976)

Preferred Dividends                           (508,690)       (575,548)

Net Profit (Loss) to Common Shareholders       560,306      (3,175,524)

Per Share of Common Stock                         0.02           (0.12)

Average Shares of Common Outstanding                        24,727,867
 Supplemental Statistical Information

Net Profit (Loss) to Common Shareholders  $    560,306    $ (3,175,524)
Add Back:
   Interest expense, including preferred
    dividends                                1,616,821       1,761,089
   Provision for income taxes                        -               -
   Depreciation and amortization               806,956         847,259

EBITDA (A)                                $  2,984,083    $   (567,176)


           Condensed Consolidated Statements of Operations

                                           Three Months Ended May 31,
                                          ------------    ------------
                                              2008            2007
                                          ------------    ------------
Sales                                     $  4,810,411    $  3,898,034

Gross Profit (Loss)                          1,125,201         641,629

Operating Profit (Loss)                        626,493         280,068

Net Profit (Loss)                              384,450          96,791

Preferred Dividends                           (105,034)       (146,507)

Net Profit (Loss) to Common Shareholders       279,416         (49,716)

Per Share of Common Stock                         0.01           (0.00)

Average Shares of Common Outstanding        26,061,201      24,061,201

                Supplemental Statistical Information

Net Profit (Loss) to Common Shareholders  $    279,416    $    (49,716)
Add Back:
   Interest expense, including preferred
    dividends                                  283,376         379,027
   Provision for income taxes                        -               -
   Depreciation and amortization               205,069         218,748
                                          ------------    ------------
EBITDA (A)                                $    767,861    $    548,059