Contract Extensions

Legacy Distribution Group Inc
09 August 2006


9 August 2006

                        LEGACY DISTRIBUTION GROUP, INC.
                          ('Legacy' or 'the Company')

                         TWO MAJOR CONTRACT EXTENSIONS

Legacy Distribution Group, Inc. (AIM: LDG), one of Arizona's leading groceries
wholesalers and distributors, announces that it has won further extensions to
its contracts to supply two current customers, the QDN Corporation, a US
national wholesale distribution service provider and Albertsons Inc., one of the
largest retail food and drug chains in the world. Both contracts are significant
to the Company in terms of revenue going forward.

QDN Corporation
Legacy will now supply 75 Marriott branded hotel properties in the Western
United States with all of their retail product needs. Namely, supplying the
hotel gift shops with anything that a consumer/guest would usually purchase,
including health and beauty supplies such as aspirin, toothpaste etc.

This contract increases Legacy's mandate with QDN by over 30% and follows the
announcement, in April this year, that the Company had won its first contract
from QDN to supply candy and snacks to over 200 retail locations including
customers such as the world's largest bookseller, Barnes & Noble, Host Marriott
(airport retail) and Staples. Legacy will be one of only six distributors in the
United States supplying Marriott locations.

Albertsons Inc.
In addition to supplying cigarettes to all of Albertsons' retail locations in
the Arizona and New Mexico area, amounting to over 100 outlets in total, Legacy
will now also fulfil all of Albertsons' other tobacco needs. This will include
products such as loose tobacco, smokeless tobacco and cigars.

Albertsons is one of the largest retail food and drug chains in the world with
over 2,500 stores in 37 US states and this is the second extension of its
contract with Legacy, since its commencement in March 2006.

Commenting Frank Patton, CEO of Legacy, said: 'For organisations such as
Albertsons and QDN to have significantly extended their remits with us, so
shortly after the initial contract wins, is a strong endorsement of our ability
to fulfil the retail requirements of large high profile clients.


Not only will they be significant in terms of revenue, it shows that our
investment to improve our distribution and other logistical systems is beginning
to bear fruit. It is also a clear demonstration that we are able to deliver on
our strategy of increasing the amount of non-tobacco related goods we supply.'

For further information:

Frank Patton                            Richard Sunderland/Rachel Drysdale
CEO                                     
Legacy Distribution Group, Inc.         Tavistock Communications
+ 1 602 344 6750                        + 44 (0) 20 7920 3150


Legacy is primarily engaged in the distribution of tobacco, cigarettes, candy
and grocery products to retailers, serving approximately 1,300 customers in over
2,200 retail locations. Customers comprise almost all of the major grocery
chains in the state of Arizona as well as independent grocery stores, liquor
stores, smoke shops, convenience stores, petrol stations and licensed casinos
operated by Native American Tribes. It also serves businesses in the states of
Arizona, Nevada and New Mexico.

In 2004, the Company was acquired by new management and investors who are
implementing a multi facetted growth strategy which includes:

   • Focussing on increasing sales of non tobacco related products
   • Growing sales in convenience stores
   • Improving sales to its existing customer and channel base
   • Expanding the business through acquisition
   • Continuing to improve working capital management and reduce cost
   • Capitalising on the market conditions created by the 1998 Tobacco Master
     Settlement Agreement which has significantly reduced licensed distributors.

In the year to 31 December 2004 Legacy grew operating profit 31 per cent. to
$465,000 (2003: $355,000) on a turnover which had increased to $57.01 million
(2003: $51,453 million). The six months to 30 June 2005 already show the
benefits of the Group's shift in operations and reorganisation, with turnover
for period at $34.05 million and both operating profit and profit after tax at
$328,000 and $176,000 respectively.

Legacy floated on AIM on 16 March 2006 and is currently valued at just over £9.5
million.

About QDN Corporation

The QDN Corporation has established a network of sales distributors to provide a
wholesale distribution service throughout the United States.  It contracts with
national chain accounts and then works with regional distributors, such as
Legacy, to service the accounts on a sole supplier basis from local warehouses.
Customers benefit from their ability to receive the cost and logistical
advantages of dealing with a national distributor, while enjoying local service
and regional knowledge.

About Albertsons Inc.

Albertsons is one of the largest retail food and drug chains in the world with
over 2,500 stores in 37 US states. Legacy signed its initial contract with
Albertsons just prior to its flotation in March 2006, with supply beginning on
the 5 April 2006.



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