EXHIBIT 99.1
[LOGO] Telebyte Inc. News Release
270 Pulaski Road, Greenlawn, NY 11740
Tel: 631.423.3232 | 800.835.3298 Fax: 631.385.8184
E-Mail: sales@telebyteusa.com Web: www.telebyteusa.com
For Immediate Release: Contact:
To Finance Editors Michael Breneisen 631-423-3232 ext. 426
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TELEBYTE ANNOUNCES INTENTION TO TERMINATE THE REGISTRATION OF ITS COMMON STOCK
WITH THE SECURITIES AND EXCHANGE COMMISSION
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GREENLAWN, NY, December 8, 2003-- Telebyte Inc. (OTC BB: TBTI), a manufacturer
of data communications and Telecom equipment, today announced that it intends to
file Form 15 with the Securities and Exchange Commission on January 2, 2004. The
effect of this filing will be to suspend Telebyte's reporting obligations under
the Securities Exchange Act of 1934 and to terminate the registration of its
common stock. The Company expects the deregistration to become effective within
90 days of the filing with the SEC.
Under the SEC's rules, a company with fewer than 300 record holders may
voluntarily terminate the registration of its securities by filing a Form 15
with the SEC. Telebyte currently has fewer than 300 record holders. Registration
of the securities may not terminate until 90 days after the filing of the Form
15; however, the Company's duty to file periodic reports such as 10-QSBs,
10-KSBs and 8K's will be suspended immediately upon the filing of the Form 15.
Because the Company's securities will no longer be eligible for listing on the
OTC Bulletin Board Exchange, the Company anticipates that its common stock will
be delisted as a result of the filing of the Form 15. The Company also
anticipates, but cannot guarantee, that, its shares will trade on the
over-the-counter market and be quoted in the Pink Sheets' quotation system
following the delisting. The Pink Sheets is a centralized quotation service that
collects and publishes market maker quotes in real time, primarily through its
web site, http://www.pinksheets.com/.
In connection with the deregistration of its common stock, the Company
anticipates withdrawing from registration unsold shares of its common stock
issuable under its benefit plans and currently registered on Form S-8.
The Board of Directors of Telebyte decided to take this action after due
consideration and careful analysis. It compared the advantages and disadvantages
of deregistering and continuing to operate as a public reporting company. The
Board of Directors concluded that the net benefits of deregistering outweighed
those of continuing as public reporting company.
In reaching this decision, the Board of Directors focused on shareholder value.
As such, it considered a number of factors during its analysis. These included
the elimination of the disproportionately large costs, both direct and indirect,
associated with the preparation and filing of the Company's periodic reports
with the SEC as well as avoidance of the increases in costs associated with
being a public company in light of the Sarbanes-Oxley Act of 2002 and related
SEC rules. The Board also considered the market value that the public markets
have historically applied to the Company's shares and took note of the fact that
the trading of the Company's stock has historically been limited. Other factors
considered included the current lack of coverage by financial analysts, and the
Company's ability, as a non-reporting company, to better preserve
confidentiality of product and other plans.
Kenneth S. Schneider, Chairman and Chief Executive Officer of Telebyte, stated
"We view this as one component of our mission to deliver value to our
shareholders. As a non-reporting company, we not only expect to realize cost
savings and avoid anticipated future costs, but also to have more flexibility in
operational and strategic matters. The Company's management will be able to
devote increased attention and resources to improving the Company's operations,
managing liabilities and enhancing the Company's long-term value."
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This release may include forward-looking statements concerning Telebyte's
intent, belief or current expectations with respect to, among other things,
trends affecting its financial condition or results of operations and its
business and growth strategies. Such forward-looking statements are not
guarantees of future performance and involve risks and uncertainties including
without limitation, those risks set forth under the caption "Risk Factors" in
our Annual Report on Form 10-KSB for the year ended December 31, 2002, that may
cause actual results to differ materially from those projected, expressed or
implied. Telebyte does not undertake any obligation to update or revise any
forward-looking statements, except as required by law.
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Headquartered in Greenlawn, New York, Telebyte, Inc. is a manufacturer of data
communications equipment for copper and fiber networks. In addition, the
high-tech enterprise designs and manufactures Broadband laboratory and
production simulation equipment. Telebyte supports a wide range of communication
solutions and services including local-loop simulators, LAN transceivers,
interface converters, short-haul modems, and fiber-optic products. Since 1983,
the publicly traded company has been dedicated to product quality and customer
service, deploying thousands of Telebyte products around the world. Additional
information on Telebyte and Nextday.com. can be found at www.telebyteusa.com,
www.telebytebroadband.com and www.Nextday.com.
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