NASDAQ Further Extends Suspension of Bid Price and Market Value of Publicly Held Shares Requirements

April 2009

On Monday, March 23, 2009, the NASDAQ Stock Market announced that it has further extended its suspension of the rules requiring a minimum $1 closing bid price and a minimum market value of publicly held shares to remain listed. The suspension of these continued listing requirements will expire on July 19, 2009. NASDAQ has previously announced two temporary suspensions of the continued listing requirements with the current suspension set to expire on April 20, 2009.

During the suspension period, NASDAQ-listed companies will not be cited for minimum bid price or market value deficiencies. Companies currently listed on NASDAQ will be able to maintain their listing even if they fail to meet the above continued listing requirements.

The recent action was a result of NASDAQ's recognition of the continued extraordinary market conditions. In its rule filing with the Securities and Exchange Commission NASDAQ noted that market conditions have not improved since the suspension began. NASDAQ has stated that it continues to believe there has been no fundamental change in the underlying business model or prospects for many companies that now fail to meet the continued listing requirements, but rather, a decline in general investor confidence has resulted in depressed pricing for companies that otherwise remain suitable for continued listing.

NASDAQ believes its action will benefit both listed companies and their shareholders. The extension of the temporary suspension will permit listed companies to continue focusing on running their businesses, rather than satisfying market-based requirements that are largely beyond their control. In addition, the extension will allow investors to buy or continue to hold shares in these companies without concern that the company will be delisted in the very near term.

NASDAQ's recent action is consistent with the actions of the New York Stock Exchange, which on February 26, 2009 extended its minimum trading price requirement until June 30, 2009.

For additional information on this topic, please do not hesitate to contact Daniele Ouellette Levy or any other member of the Public Company practice group.

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