EXHIBIT 99.1
CONVERSION SERVICES INTERNATIONAL ANNOUNCES ADJUSTMENT OF FINANCIAL
STATEMENTS RELATED TO THE ACCOUNTING OF WARRANTS ISSUED IN 2004;
NO IMPACT ON REVENUES OR CASH ITEMS
EAST HANOVER, N.J., November 21, 2005 -- Conversion Services International, Inc.
(AMEX: CVN), a premier professional services firm exclusively focused on
delivering the value in strategic business intelligence, data warehousing and
data management solutions to Global 2000 organizations and other businesses,
today announced that it restated the manner in which Conversion Services
International, Inc. ("CSI") recorded and accounted for the issuance of certain
warrants in 2004.
CSI had previously accounted for these warrants by calculating the fair value of
the warrants using an option pricing model, and attributing a portion of the
underlying debt associated with the warrants by recording the value of the
warrants as a component of stockholders' equity and a corresponding reduction of
the debt. As a result of the issuance of a registration rights agreement that
included a liquidated damages clause, which linked to an effective registration
of such securities, the value of these warrants is now reflected as a financial
instrument in the current liabilities section of the restated Condensed
Consolidated Balance Sheet. These adjustments have no impact on revenues or on
any cash items.
The determination to change CSI's accounting for these warrants was made by the
Board of Directors and the Audit Committee of CSI upon the recommendation of
management and was discussed with CSI's independent registered public accounting
firm, Friedman LLP. Additional information can be found in the Company's Current
Report on Form 8-K, its three amended Quarterly Reports on Form 10-QSB/A for the
quarters ended September 30, 2004, March 31, 2005 and June 30, 2005, and its
amended Annual Report on Form 10-KSB/A for the year ended December 31, 2004
being filed with the SEC today.
About Conversion Services International, Inc.
Conversion Services International, Inc. (CSI) is a leading provider of a new
category of professional services focusing on strategic consulting, data
warehousing, business intelligence, and information technology management
solutions. CSI offers an array of products and services to help companies
define, develop, and implement the warehousing and strategic use of both
enterprise-wide and specific categories of strategic data. CSI's current
customers include Verizon Wireless, Morgan Stanley, Pfizer, Goldman Sachs, Merck
and Standard & Poor's. Information about CSI can be found on the web at
http://www.csiwhq.com or by calling its corporate headquarters at 888-CSI-5036.
Note on Forward-Looking Statements
Except for the historical information contained herein, this press release
contains, among other things, certain forward-looking statements, within the
meaning of the Private Securities Litigation Reform Act of 1995 that involve
risks and uncertainties. Such statements may include, without limitation,
statements with respect to CSI's plans, objectives, expectations and intentions
and other statements identified by words such as "may," "could," "would,"
"should," "believes," "expects," "anticipates," "estimates," "intends," "plans"
or similar expressions. These statements are based upon the current beliefs and
expectations of CSI's management and are subject to significant risks and
uncertainties, including the ability of CSI to be in compliance will all
applicable American Stock Exchange continued listing requirements, the ability
to maintain revenue growth, the ability to locate and acquire other businesses
and to successfully integrate such acquisitions, the ability to decrease
operating expenses, and those detailed in CSI's filings with the Securities and
Exchange Commission. Actual results may differ from those set forth in the
forward-looking statements. These forward-looking statements involve certain
risks and uncertainties that are subject to change based on various factors
(many of which are beyond CSI's control). CSI undertakes no obligation to update
publicly any forward-looking statements.
Contact:
Mitchell Peipert -or- Investor Relations Counsel
Vice President and Chief Financial Officer The Equity Group Inc.
Conversion Services International, Inc. Lauren Till, 212-836-9610
973-560-9400 x 2088 LTill@equityny.com
mpeipert@csiwhq.com
Conversion Services International, Inc.
100 Eagle Rock Avenue o East Hanover, NJ 07936
973.560.9400 o www.csiwhq.com