EXHIBIT 99.1
FOR IMMEDIATE RELEASE
SOURCE INTERLINK COMPANIES, INC. RECEIVES NASDAQ STAFF DETERMINATION LETTER
BONITA SPRINGS, FL, FEBRUARY 2, 2007 -- Source Interlink Companies, Inc.
(NASDAQ: SORC) announced today that it has received a Staff Determination Letter
from the NASDAQ Stock Market (NASDAQ) advising the Company that it is not in
compliance with Marketplace Rules 4350(e) and 4350(g) that require NASDAQ
issuers to hold an annual meeting of shareholders, to solicit proxies and to
provide copies of such proxy solicitations to NASDAQ. The Staff Determination
Letter comes as a result of Source Interlink's previously disclosed decision to
delay its Annual Meeting beyond its fiscal year ended January 31, 2007. Source
Interlink has since scheduled its fiscal 2006 Annual Meeting of Stockholders for
March 22, 2007, at 9:00 a.m. Eastern Time, at the Company's principal executive
offices at 27500 Riverview Center Blvd., Bonita Springs, Florida.
Source Interlink will exercise its right to an appeal of the Staff's decision as
reflected in the Determination Letter before a NASDAQ Listing Qualification
Panel. The request for a hearing will stay the delisting action referenced in
the Staff Determination Letter until the Listing Qualifications Panel renders
its decision, and the Company's securities will continue to be traded on the
NASDAQ National Market in the interim. Source Interlink expects to be granted an
extension within which to hold its 2006 Annual Meeting, although there can be no
assurance of an extension Should such an extension be granted, the Company
anticipates that it will not be delisted and will continue to be eligible for
stock quotation on the NASDAQ National Market.
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
- Licensing of children's and family-friendly home entertainment
products
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