Business Editors
Brilliant Digital Entertainment, Inc. (AMEX:BDE), a developer and distributor of rich media advertising technologies and, through its Altnet subsidiary, secure peer to peer solutions, received a notice from the American Stock Exchange Staff on March 28, 2002 indicating that the Company is below certain of the Exchange's continued listing standards. Specifically, the Company has fallen below the following sections of the Amex Company Guide: Section 1003 (a)(i) with shareholders' equity of less than $2,000,000 and losses from continuing operations and/or net losses in two of its three most recent fiscal years; Section 1003 (a)(ii) with shareholders' equity of less than $4,000,000 and losses from continuing operations and/or net losses in three of its four most recent fiscal years; Section (a)(iii) with shareholders' equity of less than $6,000,000 and losses from continuing operations and/or net losses in its five most recent fiscal years; and Section 1003 (a)(iv) in that it has sustained losses which are so substantial in relation to its overall operations or its existing financial resources, or its financial condition has become so impaired that it appears questionable, in the opinion of the Exchange, as to whether the Company will be able to continue operations and/or meet its obligations as they mature. The Company was afforded the opportunity to submit a plan of compliance to the Exchange and on April 30, 2002 presented its plan to the Exchange. On June 19, 2002, the Exchange notified the Company that it accepted the Company's plan of compliance and granted the Company an extension of time to regain compliance with the continued listing standards. The Company will be subject to periodic reviews by the Exchange Staff during the extension period. Failure to make progress consistent with the plan or to regain compliance with the continued listing standards by the end of the extension period could result in the Company being delisted from the American Stock Exchange.
Brilliant Digital also announced the election to the Company's Board of Directors at its Annual Stockholders' Meeting, held on Thursday, June 20, of Abe Sher, Mark Dyne, Chairman of the Board of Directors and Kevin Bermeister, President and CEO for terms expiring in 2005. Abe Sher is the newest member of the Board of Directors having served since February 2002. Mr. Sher has been Managing Director of Slingshot Ventures, LLC since 1998 and from May 1998 to June 2001, Mr. Sher served as Executive Vice President of xSides Corp. Mr. Sher also serves as a member of the board of directors of Microlab, Inc., xSides Corp., and VKB, Inc.
Kevin Bermeister, President and CEO, commented, "We are thrilled to have someone of the caliber of Abe Sher serve on our Board of Directors. His wealth of experience and contacts in the industry are already proving very valuable to us in many key areas of our business. We look forward to his continued involvement and contribution in the execution of our business plan." Bermeister continued, "We continue to work closely with the American Stock Exchange and are pleased with our progress toward regaining compliance with the Exchange's continued listing requirements. While more work needs to be done, we are optimistic with the progress we are making with our rich media Brilliant Banner advertising and initiatives in the peer to peer space through our Altnet subsidiary."
About Brilliant Digital Entertainment
Brilliant Digital Entertainment, Inc. (AMEX:BDE) is a developer of 3D rich media advertising and content creation technologies for the Internet. It sells its b3d Studio content creation and authoring toolset to enable the creation and delivery of interactive, streaming, real-time 3D graphics over the Internet, and licenses its ad serving technology to the content and advertising communities. The b3d Studio toolset is targeted for use by studios, production houses, web content suppliers and advertising agencies to produce entertainment, advertising and music content for consumers distributed over the Internet. Brilliant also licenses its Brilliant Banner ad serving technology to the web based advertising industry. Find out more at www.brilliantdigital.com.
About Altnet
Altnet is the first peer-to-peer network created to give consumers easy access to secure content that originates from content owners. Altnet provides TopSearch, a product that integrates to applications and web sites via the Internet allowing content owners to direct paying customers to their content through search. Altnet also provides cost-effective bandwidth functions for enterprise customers and content owners. Altnet is a subsidiary of Brilliant Digital Entertainment (AMEX:BDE).
For further information, please contact Robin Gore at 818/615-1500, ext. 528 or rgore@bde3d.com.
Information about Forward Looking Statements
Statements in this news release that relate to (i) Mr. Sher's contributions toward executing Brilliant's business plan, (ii) Brilliant's regaining compliance with the American Stock Exchange's continued listing requirements, and (iii) other projections, events or performance are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. Actual results may differ materially due to a variety of factors, including (a) our ability to raise additional funding, (b) consumer and advertiser demand for Brilliant Banners, (c) Brilliant's ability to continue to distribute its digital projector pursuant to third party agreements, (d) the release of competing technology, (e) the market for Internet advertising, and (f) those factors set forth in Brilliant's most recently filed Form 10-KSB and Form 10-QSB reports which are available from Brilliant Digital Entertainment's Investor Relations department and may be obtained by calling or writing to Robin Gore, at 818/615-1500, ext. 528 or rgore@bde3d.com.
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COPYRIGHT 2002 Gale Group
