Exhibit 99.1
News Release
Comtrex Systems Corporation
102 Executive Drive, Suite 1
Moorestown, NJ 08057-4224
Contact: Jeffrey C. Rice, President and CEO of Comtrex Systems Corporation
1-856-778-0090, or jeffrice@comtrex.com
Comtrex Reports Nasdaq Delisting Action
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MOORESTOWN, NJ, May 30, 2002 -- Comtrex Systems Corporation (Nasdaq: COMX) today
reported receipt of a Nasdaq Staff Determination letter on May 23, 2002,
notifying the Company that it fails to comply with Marketplace Rule 4310(c)(7),
the requirement to maintain a minimum market value of publicly held shares of
$1,000,000. As a result, the Company's common stock will be delisted from the
Nasdaq SmallCap Market at the opening of business on May 31, 2002.
Jeffrey C. Rice, Comtrex President and CEO, stated "While the total
number of outstanding shares of Comtrex common stock is 1,417,120, only
approximately 804,000 shares are considered by Nasdaq as being publicly held.
The Board of Directors of the Company has determined that, since the common
stock of the Company has failed to satisfy not only Marketplace Rule 4310(c)(7),
but also failed to regain compliance with such requirement during a subsequent
ninety (90) calendar day period under Marketplace Rule 4310(c)(8)(B), there is
insufficient basis to support a successful appeal of the Nasdaq Staff delisting
determination. We remain extremely confident in the future business prospects
for the Company, particularly in light of the forthcoming release of our next
generation Windows point-of-sale product series, designed to work in conjunction
with our Odyssey BackOffice Suite. We are anxious to begin the implementation of
our sales and marketing plans for these world-class products."
The Company also announced that it will seek to continue trading in its
common stock in over-the-counter markets. The Company's common stock will,
however, then be subject to the risk that it could become characterized as a
low-priced or "penny stock," which characterization could have a material
adverse effect on the market liquidity and price of the Company's common stock.
However, no assurances can be given that the Company's common stock will be
traded on any other exchange or in any other market at any time in the future.
If the Company's common stock does not trade on any exchange or in any other
market in the future, then stockholders of the Company may lose all or a portion
of their investment in the Company.
Comtrex Systems Corporation is a software developer, systems integrator
and designer of point-of-sale (POS) electronic information systems for the
restaurant and quickservice food industry. Company information can be obtained
through the worldwide web by visiting http://www.comtrex.com.
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements. The statements in this news release that
relate to future financial results, future plans by the Company, customer
contracts or financial performance by the Company are forward-looking statements
that involve risks and uncertainties pertaining to customer orders, demand for
products and services, development of markets for the Company's products and
services and other risks identified in the Company's Report on Form 10-KSB and
other SEC filings. The Company's actual results and performance may differ
materially; therefore, readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date hereof. The
Company undertakes no obligation to release publicly the result of any revisions
to these forward-looking statements that may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.