Alloy, Inc. (Nasdaq:ALOY), a media, marketing services, direct
marketing and retail company targeting the dynamic Generation Y
population, today announced that, because of its previously announced
late filing of its Annual Report on Form 10-K for its fiscal year
ended January 31, 2004 by the extended due date of April 30, 2004, it
has received a letter from the Nasdaq staff indicating that Alloy is
not in compliance with the filing requirements for continued listing
on Nasdaq as set forth in Nasdaq Marketplace Rule 4310(c)(14). The
Company's understanding is that this letter automatically is sent out
by the Nasdaq staff when a late filing occurs. As stated in the Nasdaq
letter, the Company's common stock is subject to delisting from the
Nasdaq Stock Market because of such late filing. The Company has
requested a hearing before the Nasdaq Listing Qualifications Panel
(the "Panel") to review the Staff determination, and the delisting
proceedings have been stayed automatically pending the results of that
hearing. The Company expects to be in compliance with the Nasdaq
listing requirements by the hearing date and therefore anticipates
that the Company's request for continued listing will be granted,
although no assurance can be given that the Panel will grant the
Company's request.
The Company further reiterated its goal, announced on May 3, 2004,
to complete and file its Form 10-K within the next two weeks (i.e., by
May 14, 2004) and thus regain compliance with the requirements for
continued listing on Nasdaq upon filing. The Company is continuing to
work diligently to complete and file its Form 10-K, to comply with
applicable rules, and to cooperate with Nasdaq.
About Alloy
Alloy, Inc. is a media, marketing services, direct marketing and
retail company targeting Generation Y, a key demographic segment
comprising the more than 60 million boys and girls in the United
States between the ages of 10 and 24. Alloy's convergent media model
uses a wide range of media assets to reach more than 25 million
Generation Y consumers each month. Through Alloy's 360 Youth media and
marketing services unit, marketers can connect with the Generation Y
audience through a host of advertising and marketing programs
incorporating Alloy's media and marketing assets such as direct mail
catalogs, college and high school newspapers, Web sites, school-based
media boards, college guides, and sponsored on- and off-campus events.
Alloy generates revenue from its broad reach in the Generation Y
community by providing marketers advertising and marketing services
through 360 Youth and by selling apparel, accessories, footwear, room
furnishings and action sports equipment directly to the youth market
through catalogs, Web sites and retail stores. For further information
regarding Alloy, please visit our Web site (www.alloyinc.com) and
click on "Investor Relations". Information on 360 Youth's marketing
services can be found at www.360youth.com.
This announcement may contain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934, including statements
regarding our expectations and beliefs regarding our future results or
performance. Because these statements apply to future events, they are
subject to risks and uncertainties. When used in this announcement,
the words "anticipate", "believe", "estimate", "expect",
"expectation", "project" and "intend" and similar expressions are
intended to identify such forward-looking statements. Our actual
results could differ materially from those projected in the
forward-looking statements. Additionally, you should not consider past
results to be an indication of our future performance. Factors that
might cause or contribute to such differences include, among others,
our ability to: increase revenues, generate high margin sponsorship
and multiple revenue streams, increase visitors to our Web sites
(www.alloy.com, www.ccs.com, and www.danscomp.com) and build customer
loyalty; develop our sales and marketing teams and capitalize on these
efforts, develop commercial relationships with advertisers and the
continued resilience in advertising spending to reach the teen market;
manage the risks and challenges associated with integrating newly
acquired businesses; and identify and take advantage of strategic,
synergistic acquisitions and other revenue opportunities. Other
relevant factors include, without limitation: our competition;
seasonal sales fluctuations; the uncertain economic and political
climate in the United States and throughout the rest of the world and
the potential that such climate may deteriorate further; and general
economic conditions. For a discussion of certain of the foregoing
factors and other risk factors see the "Risk Factors That May Affect
Future Results" section included in our annual report on Form 10-K for
the year ended January 31, 2003, as amended, which is on file with the
Securities and Exchange Commission. We do not intend to update any of
the forward-looking statements after the date of this announcement to
conform these statements to actual results or to changes in
management's expectations, except as may be required by law.
CONTACT: Alloy, Inc.
Sam Gradess, 212-244-4307
SOURCE: Alloy, Inc.
