Raising the Benefits Bar at Velocity Express.

Logistics Provider to Deliver Paid Medical to Full-Time Staff

WESTPORT, Conn. -- Velocity Express Corporation (NASDAQ: VEXP), the largest time definite logistics company in North America and the nation's largest provider of regional delivery solutions, announced that as of January 2007, employees will be receiving a special delivery of their own. Thanks to a new comprehensive benefits program the company announced that all full-time employees will be on the receiving end of company-funded medical coverage.

The program, as described by Velocity Express EVP of Workforce Resources Kay Durbin, defies the current corporate trend toward increasingly self-funded healthcare. As Durbin explains, "Our management understands that in a service industry like ours, human resources are the resources that matter most. Finding cost-effective ways to maximize the coverage we offer is not just a benefit to our employees. It's a benefit to our business."

The program, according to Durbin, includes three tiers. A jointly funded major medical plan will be offered to salaried employees, the sector with the highest historical enrollment in company health plans. An alternate fully company-paid plan which includes dental, preventive care and treatment for minor illnesses and injuries, will be offered to hourly corporate administration and field operations staff. And a third fully company-paid plan will be offered, providing preventative care and minor illness and injury coverage for hourly warehouse employees, traditionally the lightest users of company benefits.

Velocity Express Corporation

Velocity Express is the largest time definite logistics company in North America, with more than $440 million in annual revenues and 5,500 independent contractor drivers, operating from 150 locations in leading markets across the United States and Canada. The Company's services are supported by a customer-focused technology infrastructure, providing customers with the reliability and information they need to manage their transportation and logistics systems, including a proprietary package tracking system that enables customers to view the status of any package via a flexible web reporting system. Visit www.velocityexpress.com for more information or call 888-VEXPNOW (888-839-7669).

Certain statements in this release may be "forward-looking statements" within the meaning of Section 27A of the Securities and Exchange Act of 1933, such as the ability of the Company to expand its strategic alliances with financial institutions. Statements regarding future developments are based on current expectations and involve certain risks and uncertainties that could cause actual results and developments to differ materially from the forward-looking statements. Such risks include the risks attendant on offering any new service, developing and introducing new technology, and other risks and uncertainties which are more fully described in the company's filings with the SEC, including the risk factors in its Form 10-K/A for the fiscal year ended July 1,2006.