EXHIBIT 99.1
Press Release
TAG-IT PACIFIC, INC.
OBTAINS ACCEPTANCE OF COMPLIANCE PLAN FROM THE AMERICAN STOCK EXCHANGE AND
MEETS THE GOVERNANCE GUIDELINES
LOS ANGELES, CA-August 4, 2006--Tag-It Pacific, Inc. (AMEX: TAG), owner of
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Talon(TM) zippers and a full service trim management supplier for manufacturers
of fashion apparel, today announced that it has received notification from the
American Stock Exchange ("AMEX") that the Company's Plan to regain compliance
with the minimum equity listing requirements has been accepted and the Company
has been granted an extension until November 16, 2007 to achieve the minimum
listing levels.
On May 16, 2006, the Company had received notice that it was not in compliance
with certain of the continued listing standards as set forth in the AMEX Company
Guide. Specifically, the AMEX letter cited the failure to comply with Section
1003(a)(i) and Section 1003(a)(ii) of the Company Guide, which effectively
required that the Company maintain shareholders' equity of at least $4,000,000.
Following the notice from AMEX the Company was afforded the opportunity to
submit a "plan of compliance" to AMEX outlining in detail how the Company
expected to achieve the minimum equity requirements and to regain compliance.
On August 3, 2006, AMEX notified the Company that it had accepted its plan and
granted the Company an extension until November 16, 2007 to regain compliance
with the continued listing standards. During this period the Company will be
subject to periodic review by the AMEX Staff and failure to make progress
consistent with the plan or to regain compliance with continued listing
standards by the end of the extension period could result in being delisted from
the American Stock Exchange.
"We are very pleased with the AMEX approval of this Plan", stated Stephen Forte,
Chief Executive Officer of the Company. "This acceptance and extension of time
to comply affords the Company the opportunity to continue its turnaround efforts
and to remain focused on the business operations and growth. The Plan is
reflective of the confidence of management that the business turnaround is
underway and will prove successful."
Additionally, the Company announced that it has also has met the governance
requirements of the AMEX Company Guidelines requiring that the board consist of
a majority of independent directors and that the audit committee be comprised of
at least three independent directors. The Company's compliance with these
provisions occurred with the recent appointment of William Sweedler to the
Company's Board of Directors and its Audit Committee, and the resignation of
Kevin Bermeister from the Board. Mr. Sweedler's appointment was previously
announced and he brings over 19 years of experience in the branded apparel,
home, and licensing industry to the Tag-It Board.
About Tag-It Pacific, Inc.
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Tag-It distributes zippers under its Talon(TM) brand name to manufacturers for
apparel brands and retailers such as Levi Strauss & Co., Wal-Mart and JCPenney.
Tag-It also supplies a full range of trim products to manufacturers of fashion
apparel, specialty retailers, mass merchandisers, brand licensees and major
retailers, including Levi Strauss & Co., Motherworks, Express, The Limited, New
York & Co., Victoria's Secret and House of Dereon, among others.
Forward Looking Statements
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With the exception of the historical information, this press release contains
forward-looking statements, as referenced in the Private Securities Litigation
Reform Act. Forward-looking statements are inherently
unreliable and actual results may differ materially. Examples of forward-looking
statements in this press release include the ability of the Company to execute
on its plan to regain compliance with the AMEX listing standards and maintain
its AMEX listing. Factors which could cause actual results to differ materially
from these forward-looking statements include the unanticipated loss of one or
more major customers, economic conditions, pricing pressures and other
competitive factors, and the availability and cost of financing. Other risks are
more fully described in the Company's filings with the Securities and Exchange
Commission including the Company's most recently filed Annual Report on Form
10-K and Quarterly Reports on Form 10-Q, which should be read in conjunction
herewith for a further discussion of important factors that could cause actual
results to differ materially from those in the forward-looking statements. The
Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
Contact:
Tag-It Pacific, Inc.
Rayna Long, 818-444-4128
rlong@tagitpacific.com
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