17/05/05 Greystone Logistics, Inc. Announces Renewal of Order with Long-Standing Customer

TULSA, Okla.--(BUSINESS WIRE)--May 16, 2005--Greystone Logistics, Inc. (OTCBB:GLGI) announced today the renewal of a long-standing purchase order with one of its largest customers. Warren Kruger (President and CEO) stated that he was pleased with the order of 526,000 beverage pallets during the next twelve months. Kruger said, "This order builds upon a six-year relationship with one of our best customers, which ordered almost 400,000 pallets from us during the last twelve months. The purchase order also allows for certain manufacturing costs to be passed through to the customer, which should improve the operating results for the Company."

About Greystone Logistics, Inc.

Greystone is a plastic pallet manufacturer that utilizes patented proprietary technologies and designs to produce high quality, recycled plastic pallets. Greystone serves the beverage, pharmaceutical and other industries.

Forward-Looking Statements

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 Greystone expects, believes or anticipates will or may occur in the future, including the potential sales of pallets, the improvement of operating results or other possible business developments, are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties. The forward-looking statements above could be affected by any of the following factors: Greystone's prospects could be affected by changes in availability of raw materials, competition, rapid technological change and new legislation regarding environmental matters; Greystone may not be able to secure additional financing necessary to sustain and grow its operations; and a material portion of Greystone's business is and will be dependent upon a few large customers and there is no assurance that Greystone will be able to retain such customers. These risks and other risks that could affect Greystone's business are more fully described in its reports filed with the Securities and Exchange Commission, including Greystone's Form 10-KSB for the fiscal year ended May 31, 2004. Actual results may vary materially from the forward-looking statements. Greystone undertakes no duty to update any of the forward-looking statements in this release.