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Burst.com, Inc.
Clarifies Ex-Dividend Date
Santa Rosa, Calif., (May 9th
2005) – In response to a multitude of recent
inquiries from investors and shareholders, Burst.com, Inc. (OTC.BB:
BRST.PK), issued the following clarification regarding the upcoming
payment of a $.90 per share dividend, and the associated “ex-dividend”
date:
As previously announced,
the dividend will be payable by the Company to stockholders of record as
of May 6, 2005. Because of the magnitude of the special cash dividend, the
NASD has determined that the ex-dividend date for trading will be May 17,
2005, the business day following the May 16th transfer agent’s
payable date for the special cash dividend. Burst stockholders of record
on the May 6, 2005 record date who subsequently sell their shares of
common stock through the close of trading on the May 16th
payable date for the special cash dividend will also be selling their
right to receive the special $.90 cash dividend. Shareholders
of record on May 6th that choose to sell their shares after May
6th but prior to May 17th will be obligated to pass
the $.90 per share dividend on to the buyer of the shares that they sell.
This is an automated process handled by the clearing agent.
Shareholders who may have sold shares since May 6th are advised
that if their actual intention was to receive the dividend, they can
re-purchase shares in the open market and then wait until the ex-dividend
date (May 17th) to sell. Investors are encouraged to
consult with their financial advisors regarding the specific implications
of the deferral of the ex-dividend date.
The $ .90 per share cash
dividend is expected to be taxable to stockholders at the dividend tax
rate since it takes into account the extent of the Company’s accumulated
and current earnings and profits for the 2005 calendar year. The dividend
will not be considered a return of capital to stockholders. Stockholders
are encouraged to consult with their financial advisors regarding the
circumstances of their individual tax situation.
More information about Burst.com is available at
www.burst.com.
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This
Press Release contains forward-looking statements similar to those covered
by the safe harbor provisions under the Private Securities Litigation
Reform Act of 1995. We believe that the expectations expressed herein,
regarding the new license of our technology with Microsoft, our use of the
funds from this license, our intent to further enforce our patents against
other companies and our intent to develop and sustain new operations are
based on reasonable assumptions. However, these forward-looking statements
are subject to numerous uncertainties and risks and actual results and
developments could differ materially from these expectations. Factors
which could affect our operations and prospects include the costs and
uncertainties of pursuing complicated litigation, the effect our license
with Microsoft will have on other companies utilizing our technology and
in our market and our ability to pursue new or additional operating
strategies. We are not responsible for updating any such forward-looking
statements.
About Burst
Founded in 1988,
burst.com
has pioneered the development of Faster-Than-Real-Time™ video and audio
delivery. burst.com has built an international patent
portfolio covering burst-mode video delivery, scheduling, rapid casting
and network optimization.
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