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Burst.com, Inc. Elects To
De-register
Stock Trading Is
Expected To Continue As Public Company
Santa Rosa, Calif., (December 23, 2002) - Burst.com, Inc. (OTC.BB: BRST),
a provider of patented media delivery software, today announced that the
company has elected to terminate its registration as a 1934 Act registered
Company. The company will continue making periodic financial and other
information public on a quarterly and annual basis, pursuant to S.E.C.
Rule 15c2-11, under the Securities Exchange Act of 1934.
According to Chairman and CEO Richard Lang, the move will allow the
company to save a significant amount of company resources that are
otherwise spent on filings required of "registered" public
companies. Lang says the company has a minimal amount of activity and
public trading in its stock to justify this significant ongoing expense.
The deregistration option is available to small public companies like
Burst.
Lang said, "We will continue making basic financial and other
information regarding our Company available to shareholders, market makers
and the public on a quarterly basis. We expect to continue being quoted
and traded by Broker Dealers, and by providing information pursuant to
Rule 15c2-11 under the Securities Exchange Act of 1934, we will still be a
public company and expect to continue to trade on the Pink Sheets."
Burst.com recently completed a private financing in which it raised in
excess of $800,000, which will provide operating capital to support the
company's licensing operations while it pursues its litigation against
Microsoft.
The company filed suit in Federal Court in June, accusing Microsoft of
anti-trust violations, patent infringement and misappropriation of Burst's
trade secrets. The company claims that Microsoft has incorporated Burst's
technology into Microsoft's new Windows Media Player 9 product release.
The complaint also alleges that Microsoft excluded Burst from the market
through various anticompetitive practices. The company is represented in
its litigation against Microsoft by a legal team consisting of Hosie Frost
Large & McArthur; Brobeck, Phleger & Harrison LLP; and Carr &
Ferrell LLP.
"We believe that our shareholders will ultimately benefit most by
our ability to make our recently acquired financial resources last long
enough to prevail in the legal process. We believe that taking advantage
of S.E.C. Rule 15c2-11 is in the best interests of the Company. We remain
a public company and we get to save our valuable cash resources. If we
decide in the future that because of new developments it is in Burst's
best interests to re-register with the S.E.C, we can always do so,"
said Lang. The company's market makers include MH Meyerson & Co. and
Paragon Capital Markets, among others.
A web link to the complete complaint as well a collection of Questions
and Answers about Burst's litigation against Microsoft can be found at: http://www.burst.com/new/newsevents/legalactivity.htm
About
Burst.com: Burst.com, headquartered in Santa Rosa,
California, is the developer of Faster-Than-Real-Time™
and Burst-Enabled™ video and audio delivery software.
Burst.com's Burstware® provides high-quality delivery
of full-motion video and CD-quality audio over IP-based
networks. The company, established in 1990, has built an
international patent portfolio covering bursting, video
delivery scheduling and Rapid-casting. Burstware®,
Faster-Than-Real-Time™ and Burst-Enabled™ are
trademarks of Burst.com. More information about
Burst.com is available at www.burst.com.
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