Contract Win

Legacy Distribution Group Inc
03 April 2006


Embargoed until 0700, 3 April 2006


                         Legacy Distribution Group Inc.


             NEW CONTRACT WON WITH LEADING US DISTRIBUTION NETWORK

        -Commencement of contract with one of world's largest retailers-


Legacy Distribution Inc. ('Legacy' or the 'the Company') (AIM: LDG), which
floated on AIM earlier this month and is one of Arizona's leading groceries
wholesalers and distributors, announces that today it has signed an exclusive
contract with the QDN Corporation, a US national wholesale distribution service
provider which supplies retailers across the United States, to serve as the sole
supplier to 200 new retail locations.


QDN Corporation
Legacy will now supply customers such as the world's largest bookseller, Barnes
& Noble, Host Marriott (through which Legacy will supply one of the largest
airport retail businesses in the US, as well as several major concessionaires at
national parks in the Southwest of the US) and Staples across the Arizona,
Nevada, New Mexico and California (bordering Arizona) market areas. The majority
of the products Legacy will supply will be candy and snacks, underlining the
Company's strategy of growing its non-tobacco related sales.


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


Albertsons
The Company also announces that on 5 April 2006, further to the contract win
announced at the time of its flotation, Legacy will begin to supply cigarettes
exclusively to all of Albertsons' convenience stores and its OSCO drug stores in
the Arizona and New Mexico area; amounting to over 150 outlets in total.


Albertsons is one of the largest retail food and drug chains in the world with
over 2,500 stores in 37 US states and the contract was signed just prior to the
Company's flotation.


Commenting Frank Patton, chief executive, said: 'These contracts are an
important step for Legacy. They validate our strategy of improving our
distribution and other logistical systems with a view to taking on larger and
more high profile contracts, whilst at the same time delivering an improved and
more flexible service to our smaller customers. These deals are also significant
for the Company in terms of revenue and it is great to be able to announce a new
contract win so soon after our AIM flotation.'


Jack M. Berdy, Chief Operating Officer of QDN, added: 'We at QDN are excited at
the decision of Legacy-Best to become part of the QDN network.  We believe that
as market leaders in the Southwest Legacy-Best will allow QDN to better meet the
need of our customers in their markets.  We look forward to significant business
opportunities together.'


For further information:
Frank Patton, CEO, Legacy Distribution Inc.:        [phone]

Richard Sunderland/Rachel Drysdale, 
Tavistock Communications Limited:                     020 7920 3150



Notes to editors:

About Legacy

Legacy, founded in 1955, has a track record of over 20 years of profitability
and in August 2004 was acquired by the current new management team and investor
group. They recognised a significant opportunity to both increase the Group's
market presence and improve revenues and earnings by introducing a sophisticated
and scaleable management system. These offer a more diverse product range and
flexible delivery system, which has enabled the Company to take on larger
instructions, such as the new contracts detailed above.


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
Nevada and New Mexico.


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


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.


Legacy floated on AIM on 16 March 2006 and is currently valued at just over £10
million.



                      This information is provided by RNS
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