SAN FRANCISCO--(BUSINESS WIRE)--May 24, 2006--CNET Networks, Inc.
(Nasdaq:CNET) announced today that on May 24, 2006 it received notice
informing the company that the Securities and Exchange Commission
(SEC) is conducting an informal inquiry into its stock option grants.
The letter from the SEC states that this informal inquiry should not
be construed as an indication by the SEC or its staff that any
violation of law has occurred, or as an adverse reflection upon any
person, entity or security.
CNET Networks intends to cooperate fully with the SEC regarding
this matter.
On May 16, 2006, the Center for Financial Research and Analysis
issued an analysis of stock option exercise prices relative to stock
price ranges for certain companies during the period 1997 to 2002. The
report identified CNET Networks as having granted stock options on
four occasions between 1998 and 2001 with exercise prices that matched
or were close to a 40-day low for its stock price. On May 22, 2006,
CNET Networks announced that its Board of Directors had appointed a
special committee of independent directors to conduct an internal
investigation relating to past option grants, the timing of such
grants and related accounting matters. The Special Committee is being
assisted by independent legal counsel.
About CNET Networks, Inc.
CNET Networks is a global media company with some of the most
important and valuable brands on the Web targeting passionate
audiences. The company's brands -- such as CNET, GameSpot, TV.com,
MP3.com, Webshots, BNET and ZDNet -- serve the technology, games and
entertainment, business, and community categories. CNET Networks was
founded in 1993 and has always been "a different kind of media
company" creating engaging media experiences through a combination of
world-class content and technology infrastructure.
CONTACT: CNET Networks
Cammeron McLaughlin, 415-344-2844 (Investor Relations)
cammeron.mclaughlin@cnet.com
Martha Papalia, 617-225-3340 (Media)
martha.papalia@cnet.com
SOURCE: CNET Networks, Inc.
