<SUBMISSION>
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<TYPE>4
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<PERIOD>20060703
<FILING-DATE>20060724
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<ISSUER>
<COMPANY-DATA>
<CONFORMED-NAME>VELOCITY EXPRESS CORP
<CIK>0001002902
<ASSIGNED-SIC>4513
<IRS-NUMBER>870355929
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0629
</COMPANY-DATA>
<BUSINESS-ADDRESS>
<STREET1>ONE MORNINGSIDE DRIVE NORTH
<STREET2>BUILDING B SUITE 300
<CITY>WESTPORT
<STATE>X1
<ZIP>06880
<PHONE>203-349-4160
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>ONE MORNINGSIDE DRIVE NORTH
<STREET2>BUILDING B SUITE 300
<CITY>WESTPORT
<STATE>X1
<ZIP>06880
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<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>UNITED SHIPPING & TECHNOLOGY INC
<DATE-CHANGED>19990512
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>U SHIP INC
<DATE-CHANGED>19960313
</FORMER-COMPANY>
</ISSUER>
<REPORTING-OWNER>
<OWNER-DATA>
<CONFORMED-NAME>THLI CONIVESTMENT PARTNERS LLC
<CIK>0001268263
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
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<FILING-VALUES>
<FORM-TYPE>4
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<FILM-NUMBER>06975772
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<MAIL-ADDRESS>
<STREET1>200 MADISON AVENUE
<STREET2>SUITE 1900
<CITY>NEW YORK
<STATE>NY
<ZIP>10016
</MAIL-ADDRESS>
</REPORTING-OWNER>
<REPORTING-OWNER>
<OWNER-DATA>
<CONFORMED-NAME>TH LEE PUTNAM PARALLEL VENTURES LP
<CIK>0001268260
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
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<FILING-VALUES>
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<MAIL-ADDRESS>
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<STREET2>SUITE 1900
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<REPORTING-OWNER>
<OWNER-DATA>
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<MAIL-ADDRESS>
<STREET1>200 MADISON AVENUE
<STREET2>SUITE 1900
<CITY>NEW YORK
<STATE>NY
<ZIP>10016
</MAIL-ADDRESS>
</REPORTING-OWNER>
<REPORTING-OWNER>
<OWNER-DATA>
<CONFORMED-NAME>TH LEE PUTNAM FUND ADVISORS LLC
<CIK>0001268258
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
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<MAIL-ADDRESS>
<STREET1>200 MADISON AVENUE
<STREET2>SUITE 1900
<CITY>NEW YORK
<STATE>NY
<ZIP>10016
</MAIL-ADDRESS>
</REPORTING-OWNER>
<REPORTING-OWNER>
<OWNER-DATA>
<CONFORMED-NAME>TH LEE PUTNAM INTERNET PARTNERS LP
<CIK>0001103414
<STATE-OF-INCORPORATION>DE
</OWNER-DATA>
<FILING-VALUES>
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<BUSINESS-ADDRESS>
<STREET1>200 MADISON AVE
<STREET2>SUITE 2225
<CITY>NEW YORK
<STATE>NY
<ZIP>10015
<PHONE>2129518600
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>200 MADISON AVE
<STREET2>STE 2225
<CITY>NEW YORK
<STATE>NY
<ZIP>10015
</MAIL-ADDRESS>
</REPORTING-OWNER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd125076.xml
<DESCRIPTION>FORM 4
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2006-07-03</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001002902</issuerCik>
        <issuerName>VELOCITY EXPRESS CORP</issuerName>
        <issuerTradingSymbol>VEXP</issuerTradingSymbol>
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    <reportingOwner>
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            <rptOwnerCik>0001103414</rptOwnerCik>
            <rptOwnerName>TH LEE PUTNAM INTERNET PARTNERS LP</rptOwnerName>
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        <reportingOwnerAddress>
            <rptOwnerStreet1>200 MADISON AVENUE, SUITE 1900</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10016</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
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    <reportingOwner>
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            <rptOwnerCik>0001268258</rptOwnerCik>
            <rptOwnerName>TH LEE PUTNAM FUND ADVISORS LLC</rptOwnerName>
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        <reportingOwnerAddress>
            <rptOwnerStreet1>200 MADISON AVENUE, SUITE 1900</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10016</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
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    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001268259</rptOwnerCik>
            <rptOwnerName>TH LEE PUTNAM FUND ADVISORS LP</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>200 MADISON AVENUE, SUITE 1900</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10016</rptOwnerZipCode>
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    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001268260</rptOwnerCik>
            <rptOwnerName>TH LEE PUTNAM PARALLEL VENTURES LP</rptOwnerName>
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        <reportingOwnerAddress>
            <rptOwnerStreet1>200 MADISON AVENUE, SUITE 1900</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10016</rptOwnerZipCode>
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    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001268263</rptOwnerCik>
            <rptOwnerName>THLI CONIVESTMENT PARTNERS LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>200 MADISON AVENUE, SUITE 1900</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10016</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
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            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Series Q Convertible Preferred Stock</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>1.1</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2006-07-03</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>C</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
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            <transactionAmounts>
                <transactionShares>
                    <value>1218822</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F6"/>
            </exerciseDate>
            <expirationDate>
                <footnoteId id="F7"/>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>0</value>
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                    <value>11072727</value>
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            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
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        </derivativeTransaction>
        <derivativeTransaction>
            <securityTitle>
                <value>Warrant to Purchase Common Stock</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>0.1</value>
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            <transactionDate>
                <value>2006-07-03</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>X</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
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            <transactionAmounts>
                <transactionShares>
                    <value>13000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F6"/>
            </exerciseDate>
            <expirationDate>
                <value>2010-01-03</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>797500</value>
                    <footnoteId id="F5"/>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>797500</value>
                    <footnoteId id="F2"/>
                    <footnoteId id="F3"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F2">(continued from footnote (1)) TH Lee Putnam Ventures, L.P. (f/k/a TH Lee.Putnam Internet Partners, L.P.), a Delaware limited partnership (the &quot;Fund&quot;), TH Lee Putnam Parallel Ventures, L.P., (f/k/a TH Lee.Putnam Internet Parallel Partners, L.P.), a Delaware limited partnership, (the &quot;Non-U.S. Fund&quot;), THLi Co Investment Partners, LLC, a Delaware limited liability corporation (the &quot;Coinvestor&quot;), TH Lee Putnam Fund Advisors, L.P. a Delaware limited partnership (the &quot;Fund Advisor&quot;), TH Lee Putnam Fund Advisors, LLC, a Delaware limited liability company (the &quot;Fund Advisor GP&quot;), TH Lee Putnam Capital, L.P., a Delaware limited partnership, and Thomas H. Lee. (continued in footnote (3))</footnote>
        <footnote id="F3">(continued from footnote (2)) The Fund Advisor is the general partner of the U.S. Fund, the Non-U.S. Fund, and the Coinvestor. The Fund Advisor GP is the general partner of the Fund Advisor. The Fund, the Non-U.S. Fund, and the Coinvestor directly hold the securities reported on Form 4. Each of the Fund the Non-U.S. Fund and the Coinvestor disclaim beneficial ownership as defined under Rule 16a-1(a)(2) under the Exchange Act, of the securities reported on this Form 4 except to the extent of their pecuniary interest therein.</footnote>
        <footnote id="F5">The transaction is not an exercise or a conversion of derivative security.</footnote>
        <footnote id="F6">The date of exercise shall be immediately upon approval of shareholders authorizing an increase in the number of shares</footnote>
        <footnote id="F7">None</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ See Attached Exhibit 99.1</signatureName>
        <signatureDate>2006-07-17</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.
<SEQUENCE>2
<FILENAME>rrd109482_122931.htm
<DESCRIPTION>POWER OF ATTORNEY
<TEXT>
<HTML>
<HEAD>
<TITLE>
rrd109482_122931.html
</TITLE>
</HEAD>
<BODY>
<PRE>
                                                                    EXHIBIT 99.1

SIGNATURES OF THE REPORTING PERSONS
Date:
TH LEE PUTNAM VENTURES, L.P.

By: TH Lee Putnam Fund Advisors, L.P.,
    its general partner

By: TH Lee Putnam Fund Advisors, LLC,
    its general partner

By: /s/ James Brown
    -----------------------------
    Name: James Brown
    Title:  Managing Director

TH LEE PUTNAM PARALLEL VENTURES, L.P.

By: TH Lee Putnam Fund Advisors, L.P.,
    its general partner

By: TH Lee Putnam Fund Advisors, LLC,
    its general partner

By: /s/ James Brown
    ----------------------------
    Name: James Brown
    Title:  Managing Director

TH LEE PUTNAM FUND ADVISORS, L.P.

By: TH Lee Putnam Fund Advisors, LLC,
    its general partner

By: /s/ James Brown
    -----------------------------
    Name: James Brown
    Title:  Managing Director

TH LEE PUTNAM FUND ADVISORS, LLC

By: /s/ James Brown
    -----------------------------
    Name: James Brown
    Title:  Managing Director

THLi COINVESTMENT PARTNERS, LLC

By: TH Lee Putnam Fund Advisors, L.P.,
    its general partner

By: TH Lee Putnam Fund Advisors, LLC,
    its general partner

By: /s/ James Brown
    -----------------------------
    Name: James Brown
    Title:  Managing Director

THOMAS H. LEE

By: /s/ Thomas H. Lee
    -----------------------------

</PRE>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
</SUBMISSION>
