Greystone Logistics Reports Unaudited Results for the Quarter & Nine Month Period Ending February 29, 2008

Greystone Logistics, Inc. (OTCBB: GLGI) released unaudited results for the quarter and nine months ended February 29, 2008. Sales were $5,427,428 with EBITDA for the quarter of $756,952. Operating profit for the quarter was $472,606 with a net income before preferred dividends of $212,377. Net income available to common shareholders after preferred dividends was $91,761.

Sales were $16,270,703 for the nine month period ended February 29, 2008 compared to $9,065,259 for the same period last year for an increase of 179%. The increase is primarily attributable to new customers, production of the beverage pallets for existing clients, upward price adjustments, and increases in pharmaceutical pallet sales. Greystone's EBITDA (earnings) (loss) before interest (including preferred dividends), income taxes, depreciation, and amortization for the nine month period ended February 29, 2008 was $2,203,617. The net income available to common shareholders was $280,891, or $0.01 per share, in the first nine months of the fiscal year compared to a net loss available to common shareholders of $(2,998,680), or $(0.12) per share, in the prior fiscal year.

"I am pleased to announce our third consecutive quarter of black ink. Greystone's competitively priced product line has expanded to twelve different 100% recycled plastic pallets as we continue our drive to be a significant player in providing sustainable shipping solutions for an ever increasing 'green' marketplace," said Warren Kruger, Greystone CEO. Kruger continued, "Greystone's new innovative 16 lb nestable pallet that lowers transportation costs by offering 2200 units per truckload is being well received, our beer keg pallet is being field tested, and we have produced samples of our 37x32 for delivery to potential users. Plant manager Ron Schelhaas and our team in Bettendorf continue to control recycled resin costs through a combination of educated buying, blending innovation, and pelletizing plastic waste. I anticipate our shareholders can look forward to a fourth quarter of profitability."

NON-GAAP Financial Measure

This release contains disclosure of EBITDA, which is a non-GAAP financial measure with the meaning of Regulation G promulgated by the Securities and Exchange Commission. A reconciliation of EBITDA to net income (loss) available to common shareholders before income taxes, the most directly comparable GAAP financial measure, as well as additional information concerning EBITDA, are included at the end of this release.

This press release includes certain statements that may be deemed "forward-looking statements" within the meaning of the federal securities laws. All statements, other than statements of historical facts that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, including the potential sales of pallets or other possible business developments are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, including the ability of the company to continue as a going concern. Actual results may vary materially from the forward-looking statements. For a list of certain material risks relating to Greystone and its products, see Greystone's Form 10-KSB for the period ended May 31, 2007.

                          Greystone Logistics, Inc.
                 Condensed Consolidated Statements of Operations


                                                   Nine Months Ended
                                                     February 29/28,
                                             -----------------------------
                                                 2008              2007
                                             -----------       -----------

Sales                                        $16,270,703       $ 9,065,259

Gross Profit                                   2,688,361           224,607

Operating Profit (Loss)                        1,503,760        (1,145,295)

Net Income (Loss)                                684,547        (2,569,639)

Preferred Dividends                             (403,656)         (429,041)

Net Income (Loss) to Common Shareholders         280,891        (2,998,680)

Per Share of Common Stock, Basic and Diluted        0.01             (0.12)

Average Shares of Common Outstanding Stock
   Basic                                      26,061,000        24,238,000
   Diluted                                    26,161,000        24,238,000


Supplemental Statistical Information

Net Income (Loss) to Common Shareholders     $   280,891       $(2,998,680)
Add Back:
   Interest expense, including preferred
    dividends                                  1,333,445         1,382,062
   Provision for income taxes                          -                 -
   Depreciation and amortization                 589,281           628,511
                                             -----------       -----------

EBITDA (A)                                   $ 2,203,617       $  (988,107)
                                             ===========       ===========



                                                  Three Months Ended
                                                    February 29/28,
                                             -----------------------------
                                                 2008              2007
                                             -----------       -----------
Sales                                        $ 5,427,428       $ 2,574,428

Gross Profit (Loss)                              876,849           110,512

Operating Profit (Loss)                          472,606          (355,645)

Net Income (Loss)                                212,377        (1,178,321)

Preferred Dividends                             (120,616)         (141,781)

Net Income (Loss) to Common Shareholders          91,761        (1,320,102)

Per Share of Common Stock, Basic and Diluted        0.01             (0.05)

Average Shares of Common Outstanding Stock
   Basic                                      26,061,000        24,728,000
   Diluted                                    26,167,000        24,728,000


Supplemental Statistical Information

Net Income (Loss) to Common Shareholders     $    91,761       $(1,320,102)
Add Back:
   Interest expense, including preferred
    dividends                                    423,270           489,921
   Provision for income taxes                          -                 -
   Depreciation and amortization                 241,921           208,561
                                             -----------       -----------

EBITDA (A)                                   $   756,952       $  (621,620)
                                             ===========       ===========
(A)  EBITDA represents income (loss) before income taxes plus interest,
     depreciation and amortization. The Company has included preferred
     dividends with interest expense. The EBITDA presented above while
     considered the most common definition used by investors and financial
     analysts, may not be comparable to similarly titled measures reported
     by other companies. The Company believes that EBITDA, while providing
     useful information, should not be considered in isolation or as an
     alternative to other financial measures determined under GAAP.