PITTSBURGH, June 10, 2005 (PRIMEZONE) -- XRG Inc. (OTCBB:XRGI), a provider of truckload freight and logistics services, today announced the completion of the reorganization initiated in April with the securing of additional funding. Barron Partners LP has agreed to advance XRG up to an additional $1.6 million for working capital and to satisfy outstanding financial obligations. XRG has reached definitive agreements with certain of its operating divisions and details are contained within 8K filings of XRG.
Richard S. Francis CEO of XRG Inc, said, "With this reorganization, we can continue to stabilize our core operations. This additional funding from Barron allows us to refocus on growth and strategic initiatives. We have achieved our initial goals of reducing our overhead by consolidating operations in conjunction with cost cuts and caps and through our newly redefined relationships with our terminals. The new terms we gained from the restructuring, this round of working capital and the new agreements signed with our operating divisions, have created a platform to execute our growth plan. The demand for our services remains strong and our focus is providing logistics and support for our operating divisions as they service our customers and rebuild the confidence of independent owner operators."
About XRG Inc.
XRG Inc. is a public company trading on the OTCBB under the symbol XRGI that was established in November 2000 to provide truckload freight and transportation logistics services nationally. In addition to organic growth, the company is targeting expansion through terminal agreements, brokerage agreements and acquisition of well-managed carriers. The growth plans of the company will position XRG to attract and retain drivers in the highly competitive current market. For more information about XRG Inc. visit http://www.xrginc.com or call 727-475-3060.
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