EXHIBIT 99.1
PRESS RELEASE DATED DECEMBER 22, 2006
FOR IMMEDIATE RELEASE
SOURCE INTERLINK POSTPONES FISCAL 2006 ANNUAL MEETING OF
STOCKHOLDERS
BONITA SPRINGS, FL, DECEMBER 22, 2006 -- Source Interlink Companies, Inc.
(NASDAQ: SORC) announced today that it has postponed its fiscal 2006 Annual
Meeting of Stockholders, previously scheduled for January 29, 2007.
On December 7, 2006, the Company's Board of Directors received a shareholder
proposal from Jonathan Ledecky, who owns more than 1,300,000 shares of Source
Interlink common stock, recommending that the Board declare a one-time special
dividend payment of $5 per share to all shareholders. The Board has reviewed
this proposal thoroughly, and has determined that the proposal is not in the
best interest of shareholders and should be omitted from the Company's proxy
statement. The Company is seeking guidance from the Securities and Exchange
Commission (SEC) with respect to the exclusion of the proposal. Given the time
required for the SEC's review, the Company will be unable to proceed with its
Annual Meeting of Stockholders on January 29, 2007. Source will announce a
rescheduled date for its Annual Meeting after receipt of the SEC's response.
As a result of the Company not holding an Annual Meeting in the 2006 fiscal
year, Source expects to receive a notification from the NASDAQ Listing
Qualifications Department (the Staff) that it will not be in compliance with
certain NASDAQ Marketplace rules and that the Company's common stock, therefore,
is subject to delisting from the NASDAQ stock market. Once such notification is
received, Source will schedule a hearing with the NASDAQ Listing Qualifications
Panel and submit its proposal for regaining compliance and preserving its
listing.
ABOUT SOURCE INTERLINK COMPANIES, INC.
Source Interlink Companies is a leading marketing, merchandising and fulfilment
company of entertainment products including DVDs, music CDs, magazines, books
and related items. The Company's fully integrated businesses include:
- Distribution and fulfilment of entertainment products to major
retail chains throughout North America and directly to
consumers of entertainment products ordered through the
Internet
- Import and export of periodicals sold in more than 100 markets
worldwide
- Coordination of product selection and placement of impulse
items sold at checkout counters
- Processing and collection of rebate claims as well as
management of sales data obtained at the point-of-purchase
- Design, manufacture and installation of wire fixtures and
custom wood displays in major retail chains
Source Interlink serves approximately 110,000 retail store locations throughout
North America. Supply chain relationships include movie studios, record labels,
magazine and
newspaper publishers, confectionary companies and manufacturers of
general merchandise. For more information, please visit the company's website at
www.sourceinterlink.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This press release contains certain "forward-looking statements" within the
meaning of Section 21E of the Securities Exchange Act of 1934 and the U.S.
Private Securities Litigation Reform Act of 1995, including statements relating
to, among other things, future business plans, strategies, growth opportunities,
statements of belief and statements of assumptions underlying any of the
foregoing.
These forward-looking statements reflect Source Interlink's current views about
future events and are subject to risks, uncertainties, assumptions and changes
in circumstances that may cause future events, achievements or results to differ
materially from those expressed by the forward-looking statements. Factors that
could cause actual results to differ include: (i) market acceptance of and
continuing retail demand for magazines, books, DVDs, CDs and other home
entertainment products; (ii) our ability to realize operating efficiencies, cost
savings and other synergistic benefits, (iii) adverse changes in general
economic or market conditions; (iv) the ability to attract and retain employees;
and (v) other events and other important factors disclosed previously and from
time to time in Source Interlink's filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K filed with the Securities
and Exchange Commission on April 17, 2006.
Source Interlink does not intend to, and disclaims any duty or obligation to,
update or revise any forward-looking statements or industry information set
forth in this press release to reflect new information, future events or
otherwise.
CONTACTS:
Investors: Media:
- ---------- ------
Dean Heine Todd St.Onge Nancy Zakhary
Investor Relations Brainerd Communicators, Inc. Brainerd Communicators, Inc.
Source Interlink Companies, Inc. 212-986-6667 212-986-6667
212-683-0376 stonge@braincomm.com nancy@braincomm.com
dheine@sourceinterlink.com