Janel World Trade Reports Fiscal 2009 Third Quarter Results

JAMAICA, N.Y.--(Business Wire)--
Janel World Trade, Ltd. (OTCBB:JLWT), a full-service global provider of
integrated transportation logistics services, today announced financial results
for its fiscal year third quarter and nine months ended June 30, 2009.

Third Quarter Results

For its fiscal 2009 third quarter, Janel reported total Company revenue of
$15,524,769, down 22% year-over-year from $19,962,837. By segment, the latest
quarter consisted of transportation logistics revenue of $15,515,608 and
computer software revenue of $9,161. Janel`s revenue was primarily affected by a
significant reduction during the period in freight rates charged by air and
ocean carriers, which the Company marks up and then passes through to its
customers. To a lesser extent, Janel customers also continued to reflect a
reduction in their own commercial shipping activities as a result of the ongoing
recession in the U.S. economy during the April-to-June period.

Reflecting the lower rates charged by air and ocean freight carriers, the
Company`s forwarding expenses in the fiscal 2009 third quarter fell by
$3,999,051, or 23%, to $13,614,681 from $17,613,732 in the fiscal 2008 quarter.
Also affecting revenue and forwarding expenses, customers continued to reduce
their expenses by switching from the use of higher-cost airfreight to the
lower-cost alternative of ocean freight. Nonetheless, third quarter forwarding
expense as a percentage of transportation logistics revenue improved by 77 basis
points from 88.52% to 87.75% year-over-year, increasing the Company`s net
revenue and operating margins in the latest period.

In response to the recession-related business slowdown it has experienced in
recent quarters, in February 2009 the Company implemented an expense austerity
program, which has been ongoing since. Primarily as a result of this stringent
cost-cutting effort, selling, general and administrative (SG&A) expenses for the
fiscal 2009 third quarter fell by $477,449, or 20%, from the prior-year period.
The net effect of the declines in forwarding expenses and SG&A was positive on
Janel`s margin, helping the Company reduce its operating loss by more than half,
to $(81,857) in the fiscal 2009 third quarter from $(192,647) in 2008. Likewise,
the Company`s 2009 third quarter net loss improved to $(105,847), or $(0.006)
per fully diluted share, as compared to its year-earlier reported net loss of
$(153,829), or $(0.009).

Nine-Month Results

For the nine months ended June 30, 2009, the Company reported total revenue of
$53,942,670, down $(4,369,474) as compared to the prior-year period`s total
revenue of $58,312,144. Mainly reflecting the third quarter results, the
principal reason for the decrease in fiscal 2009 nine-month revenue was the
reduced air and ocean carrier freight rates from April to June, then passed
through by Janel to its customers. The revenue shortfall as well as and the
continuing effect of intangible asset amortization and interest expense were the
principal factors behind Janel`s nine-month reported net losses of $(506,072),
or $(0.028) per fully diluted share, in 2009 and $(294,600), or $(0.018), in
2008.

Review and Outlook

James N. Jannello, the Company`s executive vice president and chief executive
officer, stated, "Janel`s results, and in particular our lower revenue, in this
year`s fiscal third quarter were due to an almost perfect storm of
recession-based industry factors. First, less business activity during the
recession has reduced the overall demand for freight transportation, which has,
in turn, accelerated the downward pressure on air and ocean carrier rates. In
some cases freight rates have fallen by more than 35% from year-ago levels. And
because our logistics billings are based directly on our mark-up of the rates we
pay carriers, the lower freight rates are immediately reflected in our gross and
net revenue. Second, our customers, like shippers across most industries, have
reacted to their own business economic pressures by seeking, where feasible, to
cut their operating expenses. For less time-sensitive shipments, this has meant
switching from higher-cost air to lower-cost ocean transportation alternatives,
again reducing Janel revenue. And, third, while the recession-related drop-off
has mostly stabilized, our customers are, in aggregate, still shipping less
product than they were last year. Thus, all of these factors - reduced freight
rates, the mix switch to more ocean freight, and decreased shipment volumes -
have resulted in the lower year-over-year (and lower 2009 third versus second
quarter) revenue we have reported."

"However, during the third quarter, there were also several positive factors
which helped mitigate the effect on earnings from the lower revenue stream.
While we have passed-through the savings in carrier rates to our customers, we
have also successfully maintained most of our dollar margins. Thus, our
profitability on each forwarding dollar we received from our customers improved
77 basis points year-over-year, and when applied against our $15.5 million
revenue base, this increased the Company`s third quarter operating earnings by
$120,000. In addition, as a result of the $1.8 million impairment charge taken
by the Company in last year`s fourth quarter, the quarterly charges for the
amortization of intangible assets throughout 2009 have been reduced, falling by
more than $72,000 in the fiscal 2009 third quarter. This, too, has increased our
year-over-year profitability."

Jannello continued, "Lastly as to cost savings, as we have discussed in our
previous earnings releases, during the past year the Company has moved
vigorously to reduce its ongoing operating expenses related to both SG&A and to
its 2007 acquisition of Order Logistics, Inc. (OLI). As part of our stringent
austerity program, we have reduced headcount by 11 individuals versus 2008
levels, and, since February, we have also trimmed the workweek for many staff
positions to four days. We believe these and the other across-the-board
cost-cutting actions we have taken allowed us to significantly reduce the SG&A
we have incurred this year. After reporting back-to-back SG&A reductions
totaling $60,000 in this year`s first and second quarters, we slashed an
additional $477,000, or 20%, in savings versus the prior year from the 2009
fiscal third quarter alone. Our goal is to continue to reduce SG&A spending for
the next one to two quarters by an average of at least $100,000 per month from
last year`s levels. Each overhead dollar thus saved, of course, drops straight
to the Company`s pretax earnings."

"Even with the more-than-22% decline in gross revenue, our increased margins and
cost cuts allowed the Company to report a third quarter 2009 operating loss that
was $111,000 better than a year earlier. Similarly, at the bottom line, the net
loss to shareholders improved by $48,000, or 30%, from the 2008 results. Yet,
notwithstanding these year-to-year improvements, our quarterly and nine-month
numbers continued to be negatively affected to a significant extent by OLI
results. As we have discussed as well in our prior earnings reports and filings,
OLI has remained a significant, although declining reason for the losses we have
sustained throughout this year, as we continue to not only take all feasible
steps to contain the problem, but also to decide definitively on the business`s
viability going forward. However, until this situation is finally resolved, we
continue to believe that the EBITDA calculations offer the best measures of both
Janel`s immediate financial results as well as the long-term strength of our
ongoing logistics business. The table we have additionally provided adds back
interest, taxes, depreciation and amortization as well as the OLI-related
operating losses to both periods. From this non-GAAP perspective, the Company`s
2009 third quarter and nine-month adjusted EBITDA would have been $213,168 and
$301,757, respectively."

"As we look ahead, we see signs of a developing economic recovery taking us out
of the current recession, and we expect this turnaround to take a firmer hold as
we look toward the remaining quarter of this fiscal year and into 2010. We are
confident that this slow, but steady rise in general business activity in the
U.S. and worldwide will translate positively into an increasing volume of
shipments transacted on behalf of our customers, into a strengthening of the
lower freight carrier rates that have temporarily stalled our revenue growth,
and into higher operating margins, which we will bring to our bottom line. While
we are awaiting this accompanying resurgence in the transportation logistics
business, we are also moving rapidly ahead with the activities of Janel`s
Environmental Projects Division (EPD) begun earlier this year. At the behest of
The World Bank, the Janel Environmental Consortium, which we have played an
instrumental role in forming, presented a pilot proposal to the local Chinese
Finance Bureau to help clean up a polluted lake in Wuxi, Jiangsu, China.
Subsequently, Janel and the Consortium have received a second Sponsor Letter
from the Wuxi Water Resources Bureau. Such an endorsement is a prerequisite to
being awarded the funding and grants necessary to moving the lake project
forward. Also, in late July, we retained a major public affairs company to
assist and advise our efforts in this venture, and through them we have already
held several successful meetings with members of the New York Congressional
delegation to encourage U.S. government support for this undertaking. We believe
that the EPD business we are developing has the potential to generate meaningful
peripheral revenue for Janel as it cements a foothold into the Chinese
environmental market."

Jannello concluded, "In light of our third quarter results, we have reevaluated
our revenue projection for the rest of this year. As discussed in our current
10-Q filing, we are looking for both more positive seasonality and economic
factors to help us achieve fourth quarter revenue approximately 5-15% higher
than our just-reported third quarter level. As a result, we now expect to report
2009 full-year revenue of $70-$72 million."

About Order Logistics, Inc.

Order Logistics, Inc., a wholly owned subsidiary of Janel World Trade, Ltd. that
is based in Champaign, Illinois, provides solutions that allow companies to more
effectively discover, manage, and execute global supply chain strategies. The
Order Logistics team, technology, strategies, solutions and dedicated
transportation resources allow organizations to access world-class visibility,
information and controls without disrupting existing plans, processes,
partnerships and information systems. By leveraging technology, business
solutions, operational expertise and a centralized capacity network of
transportation providers to take advantage of logistical opportunities, Order
Logistics provides end-to-end solutions to its customers. This allows each
customer to better control its unique distribution network and utilize existing
information systems to their full capacity. For additional information, visit
www.orderlogistics.com.

About Janel World Trade, Ltd.

Janel World Trade, Ltd. is a global provider of integrated logistics services,
including domestic and international freight forwarding via multi-modal
carriers, customs brokerage, warehousing and distribution, and other
transportation-related services. With offices throughout the U.S. (New York,
Chicago, Los Angeles, and Atlanta) and the Far East (Hong Kong, Shanghai, and
Shenzhen), the Company provides the comprehensive services 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 NVOCC (non-vessel operating common carrier) by the Federal Maritime
Commission. 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 www.janelgroup.net.

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.

JANEL WORLD TRADE LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

JUNE 30, 2009 SEPTEMBER 30, 2008

(Unaudited)
(Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,576,775 $ 2,428,098
Accounts receivable, net of allowance for doubtful
accounts of $130,877 at June 30, 2009 and
$129,953 at September 30, 2008 4,516,880 6,102,205
Marketable securities 45,512 52,044
Loans receivable - officers 148,150 142,574
- other 19,704 25,632
Prepaid expenses and sundry current assets 39,778 228,664
Tax refund receivable 83,000 83,000
TOTAL CURRENT ASSETS 6,429,799 9,062,217

PROPERTY AND EQUIPMENT, NET 214,098 303,855

OTHER ASSETS:
Intangible assets, net 3,031,551 3,300,119
Security deposits 50,938 50,801
Deferred income taxes 1,024,000 754,000
TOTAL OTHER ASSETS 4,106,489 4,104,920

TOTAL ASSETS $ 10,750,386 $ 13,470,992

LIABILITIES AND STOCKHOLDERS` EQUITY
CURRENT LIABILITIES:
Convertible promissory notes $ 400,000 $ 400,000
Note payable - bank 126,000 750,000
- other 125,000 125,000
Accounts payable - trade 2,641,394 3,902,719
- related party 44,648 143,422
Accrued expenses and taxes payable 360,424 303,659
Current portion of long-term debt 812,163 786,308
TOTAL CURRENT LIABILITIES 4,509,629 6,411,108

OTHER LIABILITIES:
Long-term debt 1,823,740 2,110,237
Deferred compensation 78,568 78,568
TOTAL OTHER LIABILITIES 1,902,308 2,188,805

STOCKHOLDERS` EQUITY 4,338,449 4,871,079

TOTAL LIABILITIES AND STOCKHOLDERS` EQUITY $ 10,750,386 $ 13,470,992

See notes to financial statements

JANEL WORLD TRADE LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

NINE MONTHS ENDED JUNE 30, THREE MONTHS ENDED JUNE 30,
2009 2008 2009 2008
REVENUES $ 53,942,670 $ 58,312,144 $ 15,524,769 $ 19,962,837

COSTS AND EXPENSES:
Forwarding expenses 47,703,356 51,097,175 13,614,681 17,613,732
Selling, general and administrative 6,509,575 7,046,743 1,902,489 2,379,938
Amortization of intangible assets 268,518 485,439 89,456 161,814
TOTAL COSTS AND EXPENSES 54,481,449 58,629,357 15,606,626 20,155,484

LOSS FROM OPERATIONS (538,779) (317,213) (81,857) (192,647)

OTHER ITEMS:
Interest and dividend income 13,571 38,066 2,191 9,151
Interest expense (165,864) (87,437) (56,181) (24,317)
TOTAL OTHER ITEMS (152,293) (49,371) (53,990) (15,166)

LOSS BEFORE INCOME TAXES (691,072) (366,584) (135,847) (207,813)
Income taxes (credits) (185,000) (71,984) (30,000) (53,984)
NET LOSS (506,072) (294,600) (105,847) (153,829)

Preferred stock dividends 11,250 11,250 3,750 3,750

NET LOSS AVAILABLE TO COMMON STOCKHOLDERS $ (517,322) $ (305,850) $ (109,597) $ (157,579)

OTHER COMPREHENSIVE INCOME NET OF TAX:
Unrealized gain(loss) from available for sale securities $ (6,785) $ (15,012) $ 6,990 $ 138
Basic earnings (loss) per share $ (.029) $ (.018) $ (.006) $ (.009)
Fully diluted earnings (loss) per share $ ( .028) $ (.018) $ ( .006) $ (.009)
Weighted number of shares outstanding 17,512,581 16,906,000 17,511,485 16,906,000
Fully diluted weighted number of shares outstanding 17,912,581 17,306,000 17,911,485 17,306,000

See notes to financial statements

JANEL WORLD TRADE, LTD. AND SUBSIDIARIES

RECONCILIATION OF EBITDA AND OLI-RELATED OPERATING
LOSS/(INCOME) WITH GAAP

NINE MONTHS ENDED JUNE 30, THREE MONTHS ENDED JUNE 30,
2009 2008 2009 2008

NET LOSS PER FINANCIAL STATEMENT (506,072) (294,600) (105,847) (153,829)

INTEREST EXPENSE 165,864 87,437 56,181 24,317

INCOME TAX CREDIT (185,000) (71,984) (30,000) (53,984)

DEPRECIATION EXPENSE 102,043 97,696 34,421 34,039

AMORTIZATION EXPENSE 303,663 485,439 101,171 161,814

EBITDA (Earnings before interest, taxes, depreciation (119,502) 303,988 55,926 12,357
and amortization)

OLI OPERATING LOSS 421,259 246,311 157,242 138,767

Earnings before interest, taxes, depreciation
amortization and OLI operating loss/(income) 301,757 550,299 213,168 151,124

Janel World Trade, Ltd.
Jay Jacobson, 914-722-2737
Financial Relations

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