WEST PATERSON, N.J., May 3 /PRNewswire-FirstCall/ -- Interactive Systems Worldwide Inc. today announced that on May 2, 2007 it received notification from the Listing Qualifications Staff of The NASDAQ Stock Market that, as a result of the death of Harold Rapaport, who had been an independent director and member of the Audit Committee, ISWI no longer complies with NASDAQ's audit committee requirements, as set forth in Marketplace Rule 4350. This rule requires the Company to have an audit committee of at least three independent directors as defined by NASDAQ's rules. The Company currently has two independent directors on its Audit Committee.
Consistent with Marketplace Rule 4350(d)(4), ISWI has been provided a cure period to regain compliance with NASDAQ's audit committee requirements, through the earlier of ISWI's next annual shareholders' meeting or April 26, 2008. However, if ISWI's next annual meeting is held before October 23, 2007, the Company must evidence compliance by that date. ISWI will be required to provide NASDAQ with certain documents evidencing compliance within this period. In the event that ISWI does not regain compliance within this period, NASDAQ will notify ISWI that its securities are subject to removal from NASDAQ, at which point ISWI will be provided with an opportunity to appeal the determination to a Listing Qualifications Panel.
The Nominating Committee of the Company's Board of Directors has begun a search to find a new independent director who is qualified to serve on the Audit Committee and which would result in the Company's compliance with NASDAQ's audit committee requirements.
As previously announced, the Company is scheduled to have a hearing on May 17, 2007 before the NASDAQ Listing Qualifications Panel regarding the NASDAQ staff's determination that the Company does not comply with the minimum $2,500,000 stockholders' equity requirement for continued listing, as set forth in Marketplace Rule 4310(C)(2)(B). Subsequent to the hearing, the Panel will determine whether the Company's common stock should continue to be listed on the NASDAQ Capital Market.
About Interactive Systems Worldwide, Inc.
Interactive Systems Worldwide, Inc. has designed, developed and patented a proprietary software system, the SportXction System, which enables play-by-play wagering during the course of live sporting events. ISWI, through its wholly owned subsidiary Global Interactive Gaming Ltd. (GIG), operates the SportXction(R) System in the U.K., in conjunction with established media and traditional wagering partners. The system can accept wagers from the Internet, handheld wireless devices, interactive televisions, and standalone kiosks. The system can be used for any live broadcast event
Contacts:
Interactive Systems Worldwide, Inc.
Bernard Albanese
Chief Executive Officer
James McDade
Chief Financial Officer
Phone: 973-256-8181
FORWARD-LOOKING STATEMENTS: The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements, including, but not limited to, whether the Nominating Committee of the Company's Board of Directors will find a new independent director who would be qualified to serve on the Audit Committee; and whether the Company's securities will remain listed on the NASDAQ Capital Market. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date thereof. Readers should carefully review the risks described in other documents the Company files from time to time with the Securities and Exchange Commission, including Annual Reports, Quarterly Reports and Current Reports on Form 8-K.
