Exhibit 99.1
[GRAPHIC OMITTED]
CONTACT:
The Management Network Group, Inc. or Brainerd Communicators
Janet Hall Olga Shmuklyer (Media)
Janet.Hall@tmng.com shmuklyer@braincomm.com
800.876.5329 Corey Kinger (Investors)
kinger@braincomm.com
212.986.6667
TMNG ANNOUNCES CREATION OF SPECIAL COMMITTEE
TO REVIEW STOCK OPTION PRACTICES
Announces Revenues for Quarter Ended September 30, 2006 and Schedules
Conference Call for November 14 to Discuss
3rd Quarter Business Developments
Overland Park, KS - November 13, 2006 - TMNG Global (Nasdaq: TMNG), a leading
provider of management consulting services to the global communications, media
and entertainment industries, today announced that following an initial internal
review of its stock option practices for the period from 1999, the year of the
Company's initial public offering, through 2005, its Board of Directors has
appointed a Special Committee to conduct a review of the Company's historical
practices regarding its stock option programs and related accounting. The
Special Committee is comprised of independent members of the Board and has
retained independent outside counsel which has full authority to retain
accounting experts. The Special Committee will make appropriate recommendations
regarding the Company's ongoing option granting practices and procedures.
Following the Special Committee's review, the Company may need to correct its
historical determinations of non-cash stock-based compensation expense. If these
corrections are material,
the Company would be required to restate its financial statements. Although the
impact on the Company's historical financial statements is not yet known, the
Company does not expect the review to result in changes to its historical
revenues or non-option related operating expenses.
In light of the Special Committee review, the Company will not be in a position
to file its quarterly report on Form 10-Q for the thirteen week period ended
September 30, 2006 by the November 14, 2006 due date and does not anticipate it
will be in a position to file the Form 10-Q within the 5-day extension period
under Rule 12b-25. The Company has notified the Nasdaq Stock Market and the
Securities and Exchange Commission of the Special Committee review and that the
quarterly filing will be delayed.
The Company announced that its gross revenues for the 2006 third quarter
increased 7.9% to $8.7 million, compared with revenue of $8.1 million in the
third quarter of 2005. For the nine months ended September 30, 2006, revenue
increased 5.2% to $25.4 million, compared with $24.1 million in the first nine
months of 2005. While revenues were higher for both periods compared with a year
ago, the Company noted that third quarter 2006 revenues were lower than
expected. TMNG also noted that it anticipates reporting a loss for the third
quarter and year-to-date.
The Company will not be in a position to announce additional financial results
for the quarter until the Special Committee has completed its review and a
determination of the appropriate stock-based compensation has been made. Though
the release of full financial results will be delayed, the Company will host a
conference call to discuss third quarter business developments on Tuesday,
November 14, 2006 at 5:00 p.m. ET. To participate on the live call, investors
should dial 888-332-7254 in the United States or 973-582-2856 from international
locations and reference conference passcode 8018493 approximately ten minutes
prior to the start time. In addition, the call will be available via live
webcast over the Internet on the "Investor Relations" portion of TMNG's
corporate Web site, http://www.tmng.com. Investors should go to the Web site
approximately 10 minutes prior to the start time of the call to register. An
on-line archive of the call will be available at http://www.tmng.com for one
week. Additionally, a replay of the call will be available by dialing
877-519-4471, passcode 8018493, through November 21, 2006.
About TMNG Global
The Management Network Group, Inc. (Nasdaq: TMNG) is a leading provider of
professional services to the converging communications industry and the
financial services firms that support it. With more than 400 consultants
worldwide, TMNG Global's clients include communications service providers,
entertainment, media and technology companies, and financial services firms.
Founded in 1990, TMNG Global has provided strategic and management consulting,
as well as managed services, to more than 1000 clients worldwide, including all
the Fortune 500 telecommunications companies. The company is headquartered in
Overland Park, Kansas, with offices in Berlin, Boston, Chicago, London, New
York, Dallas, Shanghai and Washington, D.C. TMNG Global can be reached at
1.888.480.TMNG (8664) or online at http://www.tmng.com.
This release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements
involve risks and uncertainties. In particular, any statements contained herein
regarding the Special Committee's review or expectations with respect to the
Company's financial statements are subject to the Special Committee's review and
other known and unknown risks, uncertainties, and contingencies. Factors that
might affect actual results, performance, or achievements include, among other
things, the outcome, timing and impact of the Special Committee's review and the
other matters discussed in this press release, the conclusions of the Special
Committee resulting from that review, any adverse tax or accounting adjustments
resulting from that review, conditions in the telecommunications industry,
overall economic and business conditions, the demand for the Company's services,
and technological advances and competitive factors in the markets in which the
Company competes. In addition to the matters discussed in this press release,
risks and uncertainties are described from time to time in TMNG's filings with
the Securities and Exchange Commission.
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