EASY Easylink Services Corp CL A (MM)

EasyLink Services Corporation (NASDAQ: EASY), a leading global provider of outsourced business process automation services that transform manual and paper-based business processes into efficient electronic ones, today announced that it has filed a definitive proxy statement with the SEC to obtain shareholder approval of a reverse split of its common stock. The filing, approved by EasyLink's Board of Directors, is for reverse splits ranging from 1 for 3, 1 for 5 and 1 for 7, giving the company the flexibility to implement the split that will best meet its objectives after factoring in the trading price of EasyLink common stock on the day of the split's execution. The Company expects to affect the split shortly after a special shareholder meeting scheduled for August 24, 2006. EasyLink is taking this action to regain compliance with NASDAQ rules regarding minimum bid price requirements. In addition, the Company believes it will also improve its equity structure, liquidity, access and attractiveness to a wider spectrum of investors. The Company can regain compliance with the minimum bid price requirement if the Company's common stock closes at or above $1 for 10 consecutive business days following the reverse stock split, in which case the Company would expect to receive notification from NASDAQ that it has regained compliance. However, there can be no assurance that the reverse stock split will cause the Company to regain compliance for the minimum bid price requirement for the required period of time. Thomas Murawski, Chairman, President and CEO of EasyLink stated: "Continuing to be a NASDAQ listed company is of paramount concern to our investors, customers, partners and employees, and implementing a reverse split will raise our stock price to a level that complies with NASDAQ requirements. Most importantly, we are taking this action at a time when we believe that the Company is poised to deliver improving revenue and earnings results. Our split-adjusted stock price will give us greater access to share the investment rationale for EASY with a broader segment of the investment community as we work to rebuild our investor base. I strongly urge all shareholders to vote in favor of the reverse split prior to the shareholder meeting." About EasyLink Services Corporation: EasyLink Services Corporation (NASDAQ: EASY), headquartered in Piscataway, New Jersey, is a leading global provider of outsourced business process automation services that enable medium and large enterprises, including 60 of the Fortune 100, to improve productivity and competitiveness by transforming manual and paper-based business processes into efficient electronic business ones. EasyLink is integral to the movement of information, money, materials, products, and people in the global economy, dramatically improving the flow of data and documents for mission-critical business processes such as client communications via invoices, statements and confirmations, insurance claims, purchasing, shipping and payments. Driven by the discipline of Six Sigma Quality, EasyLink helps companies become more competitive by providing the most secure, efficient, reliable, and flexible means of conducting business electronically. For more information, please visit www.easylink.com. This news release may contain statements of a forward-looking nature relating to future events or financial results of EasyLink Services Corporation. Investors are cautioned that such statements are only predictions and actual events or results may differ materially. In evaluating such statements, investors should specifically consider the various factors that could cause actual events or results to differ materially from those indicated from such forward-looking statements. These include: the ability to service our remaining indebtedness; the ability to continue as a going concern being dependent upon the ability to generate sufficient cash flow to meet our obligations on a timely basis, to obtain additional financing or refinancing as may be required, and to achieve and maintain profitable operations; significant leverage; the ability to attract additional customers or to expand services sold to existing customers; the ability to successfully implement our business strategy; the ability to commence service for new customers on a timely basis and to ramp usage by such customers in accordance with our expectations; significant competition; the risks inherent in integrating the EasyLink business; and the risk of being delisted from NASDAQ, including the risk that the Company may be unable to regain compliance with the $1 minimum bid price requirement on the Capital Market by the expiration of the additional 180 day grace period which would expire on August 21 , 2006 or may be unable to maintain compliance with all of the other continued listing requirements of the Capital Market. These and other risks and uncertainties are described in more detail in the Company's filings with the Securities and Exchange Commission.