SAN FRANCISCO--(BUSINESS WIRE)--Aug. 16, 2006--CNET Networks, Inc.
(Nasdaq:CNET) today announced that it intends to request a hearing
before the Nasdaq Listing Qualifications Panel in response to the
receipt of a Nasdaq Staff Determination notice on Monday, August 14,
2006, stating that the company is not in compliance with Nasdaq
Marketplace Rule 4310(c)(14). The letter, which was expected, was
issued in accordance with Nasdaq procedures because the company has
not timely filed its Quarterly Report on Form 10-Q for the period
ended June 30, 2006. Pending a decision by the hearing panel, CNET's
common stock will remain listed on The Nasdaq National Market. There
can be no assurance that the hearing panel will grant the company's
request for continued listing.
The company has previously announced that a special committee of
the Board of Directors is conducting a review of the company's stock
option practices and related accounting. The company intends to file
its Form 10-Q once the special committee has completed its review and
the company's independent registered public accountants have completed
their procedures.
The company also announced that it has received a notice from the
trustee under the indenture governing the company's $125 million
aggregate principal amount of 0.75% Convertible Senior Notes due 2024,
stating that the company is in default of its covenant to file its
Form 10-Q with the trustee within fifteen days after it is required to
be filed with the SEC. If the default is not cured within 60 days, the
bonds may be accelerated by the holders of 25% outstanding principal
amount or the trustee. As of June 30, 2006, the Company had
approximately $143.3 million of cash and investments.
Forward-Looking Statements
The press release contains forward-looking statements concerning
CNET's plans to request a hearing before a Nasdaq Listing
Qualifications Panel and the special committee's continuing review of
CNET's stock option grant practices and related accounting. There can
be no assurance concerning the outcomes of the hearing request, the
special committee's review or the effect of the potential acceleration
of the notes. Forward-looking statements are made as of the date of
this press release and, except as required by law, CNET does not
undertake an obligation to update its forward-looking statements to
reflect future events or circumstances.
About CNET Networks
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, Inc.
Gloria Lee, 415-344-2975 (Investor Relations)
Gloria.Lee@cnet.com
SOURCE: CNET Networks, Inc.
