Exhibit 99.1
At EMAK Worldwide, Inc.:
Media and investor inquiries:
SVP and Chief Financial Officer
(323) 932-4324
For Immediate Release
EMAK Worldwide to Request Hearing Regarding Nasdaq Staff Determination Letter
LOS ANGELES, Feb. 29, 2008 – EMAK Worldwide, Inc. (Nasdaq: EMAK), a leading marketing services firm, today announced that on February 25, 2008 the Company received a Nasdaq Staff Determination Letter indicating that the Company fails to comply with the stockholders’ equity requirement of Marketplace Rule 4310(c)(3), and that its securities are, therefore, subject to delisting from The Nasdaq Capital Market. The Company will request a hearing before a Nasdaq Listing Qualifications Panel to review the Staff Determination. There can be no assurance that the Panel will grant the Company’s request for continued listing.
The Company continues to negotiate with the holder of its preferred stock with respect to a restructuring that would result in book value being reclassified as permanent equity on the Company’s balance sheet in order to satisfy continued listing requirements.
In the event that the Company’s Common Stock was delisted from the Nasdaq Capital Market, the Company expects that its Common Stock would be eligible for quotation on the Nasdaq Over-the-Counter Bulletin Board without interruption or delay.
About EMAK Worldwide, Inc.
EMAK Worldwide, Inc. is the parent company of a family of marketing services agencies including Equity Marketing, Logistix, Mega and Upshot. Its agencies are experts in “consumer activation” by offering strategy-based marketing programs that directly impact consumer behavior. The agencies provide strategic planning and research, consumer insight development, entertainment marketing, design and manufacturing of custom promotional products, kids marketing, event marketing, shopper marketing and environmental branding. The Company’s blue-chip clients include Burger King Corporation, Frito-Lay, Kellogg, Kohl’s, Kraft, Macy’s, Miller Brewing Company and Procter & Gamble, among others. Headquartered in Los Angeles, EMAK has offices in Chicago, Amsterdam, Frankfurt, London, Paris and Hong Kong. More information about EMAK Worldwide is available on the Company’s web site at www.emak.com.
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EMAK Worldwide, Inc.
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Certain expectations and projections regarding the future performance of EMAK Worldwide, Inc. discussed in this news release are forward-looking and are made under the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These expectations and projections are based on currently available competitive, financial and economic data along with the Company’s operating plans and are subject to future events and uncertainties. Management cautions the reader that the following factors, among others, could cause the Company’s actual consolidated results of operations and financial position in 2008 and thereafter to differ significantly from those expressed in forward-looking statements: the Company’s dependence on a single customer; the significant quarter-to-quarter variability in the Company’s revenues and net income; the Company’s dependence on the popularity of licensed entertainment properties and the ability to license, develop and market new products; the Company’s dependence on foreign manufacturers; the Company’s need for additional working capital; the negative results of litigation, governmental proceedings or environmental matters; and the potential negative impact of past or future acquisitions. The Company undertakes no obligation to publicly release the results of any revisions to forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The risks highlighted herein should not be assumed to be the only items that could affect the future performance of the Company.
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