ChampionLyte Holdings, Inc. Signs Definitive Agreement To Acquire Two New York-Based Transportation/Logistics Companies; Company to Sell Beverage Assets - Will Become Pure-Play Logistics Company.

MIAMI -- ChampionLyte Holdings, Inc. (OTCBB:CPLY) today announced that it has signed a definitive agreement for the acquisition of Cargo Connection Logistics Corp. and Mid-Coast Management, Inc., two privately-held, New York-based transportation/logistics companies. The combined entities had 2004 revenues of $18 million and are currently on a run-rate of more than $20 million for 2005.

Pursuant to the all stock transaction, which was unanimously approved by both boards, Cargo Connection Logistics Corp. and Mid-Coast Management became wholly owned subsidiaries of ChampionLyte, which will change its name to reflect its new operations. As part of the agreement, an institutional investor has raised $1 million dollars for the Company. The funds will be used for working capital for Cargo Connection Logistics Corp. and to liquidate part of ChampionLyte Holdings current outstanding debt. Miami-based Knightsbridge Capital acted as exclusive financial advisor to ChampionLyte Holdings.

"For the past two years we have committed significant resources including several million dollars to resurrect a beverage company that was on the brink of collapse," said David Goldberg, president of ChampionLyte Holdings, Inc. "Despite all of these efforts and what we still firmly believe is an excellent product, we could not make the inroads necessary to be a viable player in the beverage industry. As a result, we recently engaged Knightsbridge Capital to explore several strategic merger options that would have a positive impact on the valuation of our company. Our board believes that the acquisition of Cargo Connection and Mid-Coast provides us with an outstanding opportunity to provide real value for our shareholders in a mature, multi-billion dollar industry with a company that has a seasoned management team with ambitious, yet pragmatic, growth plans."

Cargo Connection and Mid-Coast, which are based in Inwood, N.Y., have offices in Atlanta, Charlotte, Chicago, Columbus, Miami, New York, and Pittsburgh. The companies provide a comprehensive variety of transportation and warehouse capacity services to shippers throughout the nation. Currently the two companies have a total of 87 full-time employees. Cargo Connection was originally developed as an agency for industry leader, Landstar System Inc. (NASDAQ:LSTR).

"Even though we've experienced double digit growth over the past two years there are still many opportunities to expand the size and scope of our business and become a significant player in the more than $200 billion domestic transportation/logistics industry," said Jesse Dobrinsky, president of Cargo Connection Logistics Corp. "As part of a public entity with access to substantial capital we believe we will be able to accelerate our efforts to grow both organically and through targeted acquisitions."

Goldberg said that ChampionLyte is actively pursuing the sale of the primary assets of ChampionLyte Beverages, Inc. which manufactures and markets ChampionLyte(R), the first completely sugar-free entry in the isotonic sports drink market.

"ChampionLyte(R), the only sports drink with no sugar, calories, sorbitol, saccharin, aspartame, caffeine or carbonation is a wonderful product," said Goldberg. "We're confident an experienced beverage marketer with established distribution channels that is willing to commit the necessary resources can capture a segment of this multi-billion dollar market."

About Cargo Connection Logistics Corp/Mid-Coast Management

Cargo Connection Logistics Corp. is a leader in world trade logistics. Headquartered adjacent to JFK International Airport, the company is a transportation logistics provider for shipments importing into and exporting out of the United States, especially through Chicago, Illinois, JFK, New York, Miami, Florida or Atlanta, Georgia with service areas throughout the Unites States and North America. Mid-Coast Management is a container freight station specifically designed to handle internationally arriving freight for Mast Industries, the major supplier to Limited Brands, one of the world's largest multi-brand specialty retailers, as well as many other significant fashion brands. Since its inception, Mid-Coast Management, Inc. has developed relationships with many other retailers and works with Freight Forwarders from around the world.

Additional information about Cargo Connection can be obtained at its website http://www.cargocon.com

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain of the statements contained herein, which are not historical facts, are forward-looking statements with respect to events, the occurrence of which involve risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the Company is detailed from time to time in the Company's reports filed with the Securities and Exchange Commission.