WLG Inc. Reports Increase in First Quarter 2008 Revenues of $54 Million -- Up 84%...

WLG Inc. Reports Increase in First Quarter 2008 Revenues of $54 Million -- Up
84% Over Prior Year Revenues of $29 Million

CHICAGO, May 19 /Xinhua-PRNewswire-FirstCall/ -- WLG Inc. ("WLG")
(OTC Bulletin Board: WLGI), a global provider of integrated transport and
logistics services, is pleased to report its financial results for the three
months ended March 31, 2008.
Financial Overview -- Revenues reach $54 million in Quarter 1 - 2008
WLG reported increases in revenues of $24.8 million and gross profit of
$2.0 million for the first quarter of 2008, over the same period in 2007.
Revenues for the first quarter of 2008 were $54.1 million, compared to $29.3
million last year. Gross profit increased by 42% to $6.7 million from $4.7
million in 2007. Net income before taxes is $87,000 for the first quarter of
2008, compared to $238,000 in 2007. The drop in net income before taxes of
$151,000 is mostly attributable to higher non-cash charges and interest
expense in the first quarter of 2008 over the same period in 2007, which,
together, combined for an increase of approximately $196,000.
Non-cash charges for depreciation and amortization in the first quarter of
2008 rose by $76,000 to $318,000 from $242,000 over the same period last year.
Net interest expense increased by $120,000 in the first quarter of 2008,
compared to the first quarter of 2007. Substantially all of the increase in
non-cash charges and interest expense is attributable to an acquisition
completed by WLG in July 2007.
WLG's assets at March 31, 2008, were $41.5 million, compared to $25.4
million as of March 31, 2007, for an increase of $16.1 million, while total
liabilities increased by $10.3 million.
Management Review and Outlook
Mr. Christopher Wood, WLG's Chief Executive Officer commented, "I am
pleased to report that revenues, gross profit and operating income are all up
in the first quarter of 2008, compared to last year. Looking back for a
moment, I would like to note that WLG completed the acquisition of World
Commerce Services, LLC, ("WCS") in July 2007. This was a major acquisition
for us, and we are continuing to integrate WCS into our US operations, a
process we started in 2007. WCS is a full-service logistics company with
customers that specialize in importing goods from Asia. Prior to completing
the acquisition, we believed WCS would provide us with a number of synergies,
including eliminating costs, consolidating some of our US operations, using
WCS's office network in the US and expanding services to both our customers
and those of WCS. As we go forward and realize the benefits of these changes,
we expect to see a very positive effect on our profitability. I would also
like to point out that our operations in the UK were negatively impacted by
additional one-time costs and lost gross profit of approximately $222,000 in
the first quarter of 2008, caused by the bankruptcy of a large customer and
the one-time charges of moving to a new office and warehouse facility. Even
with these events, we believe that our first quarter results are very
positive, particularly in the face of the news of a slowing US economy.
As just noted, we are alert to the unfolding economic issues that may
affect our industry, and we intend to monitor these closely over the coming
months. However, we are pleased with our performance in the first quarter of
2008, and we are committed to increasing our revenues and profits for the
remainder of 2008."
About WLG Inc.
WLG Inc. is an international, non-asset based, third-party logistics and
freight transportation provider, offering a broad array of logistics and
related services through its regional and international operations. With more
than three decades of experience in international transportation, WLG has
established itself as a leading provider of traditional freight forwarding and
freight management services to customers throughout the world. Additional
information is available at http://www.wlglogistics.com .
Forward-Looking Statements
The statements contained in this release that are not historical facts are
forward-looking statements (as such term is defined in the Private Securities
Litigation Act of 1995). Actual results may differ materially from those
anticipated or implied in the forward-looking statements. These forward-
looking statements involve risks and uncertainties, including competitive
factors and pricing and supply pressures, WLG's dependence upon conditions in
the air, ocean and land-based freight forwarding industry, the size and
resources of many of WLG's competitors, and the need for WLG to effectively
integrate acquired businesses and to successfully deliver its primary
services. Additional information with respect to these and other factors that
could materially affect WLG are included in WLG's filings with the Securities
and Exchange Commission, including its most recent Form 10-K and Form 10-Q
filings.
Reconciliation of Non.GAAP Measures
WLG believes that net income applicable to common stock is the financial
measure calculated and presented in accordance with generally accepted
accounting principles (''GAAP'') that is most directly comparable to EBITDA.
Moreover, the presentation of EBITDA is relevant and useful because we believe
that EBITDA is the most frequently used measurement by the logistics industry,
financial analysts and others in the financial community to evaluate our
operating performance, as well as that of our competitors.
The following table reconciles WLG's EBITDA with net income applicable to
common stock as derived from WLG's unaudited financial statements for the
three months ended March 31, 2007 and 2008:

WLG Inc.

Reconciliation of Non-GAAP Measures
For the three months ended March 31 2007 2008
$('000) $('000)

Net income (loss) applicable
to common stock 128 (16)
Add back:

Dividends on preferred stock 22 22
Income taxes 88 81
Interest expense 118 244
Interest income (9) (15)
Depreciation and amortization 242 318
Total add backs 461 650

EBITDA $589 $634

Contact:
Chris Wood
chrisw@hk.wlglogistics.com

Remo Picchietti
remo.picchietti@us.wlglogistics.com
+1-224-653-2800

SOURCE WLG Inc.

Chris Wood, chrisw@hk.wlglogistics.com, or Remo Picchietti, +1-224-653-2800,
remo.picchietti@us.wlglogistics.com, both of WLG