Exhibit 99.1
FOR IMMEDIATE RELEASE
COMPUTER HORIZONS ANNOUNCES INITIAL
LIQUIDATING DISTRIBUTION
MOUNTAIN LAKES, NJ, March 5, 2007 - Computer Horizons Corp. (Nasdaq:CHRZ), today
announced that its Board of Directors has declared an initial liquidating
distribution of $4.00 per share to its common shareholders. The distribution
will be payable March 27, 2007 to shareholders of record as of the close of
business on March 16, 2007. The initial liquidating distribution announced today
is the first of what is expected to be a series of liquidating distributions
pursuant to the plan of liquidation and dissolution approved by the company's
shareholders on February 14, 2007.
The liquidating distribution announced today represents a partial
distribution to shareholders of the proceeds received by the company from the
sale of its RGII Technologies subsidiary and substantially all of the non-cash
assets of its Chimes, Inc. subsidiary and its Commercial division. "We expect to
make additional liquidating distributions as the company's remaining contingent
liabilities and post-closing obligations are discharged," said Dennis Conroy,
President and CEO of the company. Other factors that will affect the amount and
timing of additional liquidating distributions include the payment or provision
for the payment of debts, expenses, taxes and other liabilities of the company
and the timing and cost of liquidating and winding up the company's business
affairs.
For tax purposes, the distribution announced today is a "liquidating
distribution". Each liquidating distribution should be allocated proportionately
to each share of stock owned by a shareholder. A shareholder's gain or loss will
be computed on a "per share" basis so that gain or loss is calculated separately
for blocks of stock acquired at different dates and different prices. Gain will
be recognized in any taxable year in connection with a liquidating distribution
only to the extent that the aggregate value of all liquidating distributions
received by a shareholder with respect to a share exceeds such shareholder's tax
basis for that share. If the amount of the distributions is less than the
shareholder's basis in his or her shares of common stock, the shareholder will
generally recognize a loss only in the year the final distribution is received
by the shareholder (or by a liquidating trust on behalf of the shareholder). We
recommend that shareholders consult their own tax advisors regarding the tax
consequences to them of the liquidation and dissolution.
We will, at the close of each taxable year, provide shareholders and the
IRS with a statement of the amount of cash and our best estimates of the fair
market value of any property distributed to the shareholders (or transferred to
a liquidating trust) during that year as determined by us, at such time and in
such manner as required by the Treasury Regulations.
Statements made in this news release regarding the payment of additional
liquidating distributions are forward-looking statements. Such forward-looking
statements are subject to a number of risks and uncertainties, and there can be
no assurance that the expectations reflected in those statements will be
realized or achieved. Such risks and uncertainties include, without limitation,
possible contingent liabilities and post-closing indemnification and other
obligations arising from the sale of the company's businesses; and risks
associated with the liquidation and dissolution of the company, including,
without limitation, settlement of the company's liabilities and obligations,
costs incurred in connection with the carrying out of the plan of liquidation
and dissolution, the amount of income earned on the company's cash and cash
equivalents and short-term investments during the liquidation period, and the
actual timing of liquidating distributions.
You should also read the risk factors that are discussed in the company's
periodic reports filed with the Securities and Exchange Commission, including
the risk factors contained in the company's Form 10-K for the year ended
December 31, 2005. You should be aware that the risk factors contained in the
Form 10-K may not be exhaustive. Therefore, we recommend that you read the
information in that Form 10-K together with the other reports and documents that
we file with the SEC from time to time, including our Forms 10-Q and 8-K, which
may supplement, modify, supersede or update those risk factors. The company
assumes no obligation to update the forward-looking statements included in this
press release.
Corporate Contact: David Reingold
Investor Relations, Marketing
Computer Horizons Corp.
(973) 299-4105
dreingold@computerhorizons.com
