MHLZC Microhelix (MM)

microHelix Announces Shareholder Approvals 1-for-3 Reverse Stock Split Effective December 9, 2003 PORTLAND, Ore., Dec. 8 /PRNewswire-FirstCall/ -- microHelix, Inc. , a leading designer, manufacturer and distributor of customized electronic micro-interconnect systems for the medical industry and commercial and military markets, today announced that its shareholders have approved a 1-for-3 reverse stock split of its common stock, a temporary repricing of its Class B warrants and the purchase of common stock by certain of its officers and directors. microHelix common stock will trade under the symbol MHLXD for 10 trading days after the reverse stock split goes into effect or through trading on December 22nd. After this period, trading will resume under the current symbol MHLXC. The 1-for-3 reverse stock split, which is effective immediately, was approved in response to a requirement by the Nasdaq SmallCap Market that microHelix's common stock have a $1.00 per share minimum bid price. After giving effect to the reverse stock split, the closing price of microHelix's common stock on December 8, 2003 would have been $1.20. The closing bid price of the common stock must remain above $1.00 per share for at least the next 10 trading days in order for microHelix to retain its SmallCap Market listing with respect to this issue. Nasdaq may require the closing bid price to remain above $1.00 per share for more than 10 trading days if it deems it necessary to demonstrate microHelix's ability to maintain long-term compliance with this listing requirement. microHelix also announced today that Nasdaq has given the Company until February 11, 2004 to demonstrate that it has shareholders' equity as of that date of at least $2,640,000. The Company's shareholders' equity at September 30, 2003 was $2.2 million. microHelix intends to comply with such requirement by issuing additional equity capital in exchange for cash and conversion of debt. microHelix's shareholders today approved a temporary reduction the exercise price of its approximately 2,800,000 shares outstanding Class B warrants (NASDAQ:MHLZC) to $1.41 per share (after giving effect to today's 1-for-3 reverse stock split). This temporary repricing will be effective through February 4, 2004. Thereafter, the exercise price of the Class B warrants will return to the original $21.60 per share (after giving effect to today's 1-for-3 reverse stock split). Each Class B warrant is exercisable for one share of microHelix common stock. All issuances of common stock upon exercise of Class B warrants are subject to compliance with applicable federal and state securities laws. microHelix shareholders today also approved issuances of up to $500,000 of common stock to its directors and officers, at a price of $1.41 per share (after giving effect to today's 1-for-3 reverse stock split) as part of microHelix's plan to increase its shareholders' equity as required to retain its Nasdaq SmallCap Market listing. As of December 5, 2003 three of the Company's directors have converted a total of $200,000 of debt owed to them by microHelix into 141,844 shares of common stock under this program (after giving effect to today's 1-for-3 reverse stock split). microHelix cannot provide assurance that a sufficient number of Class B warrants will be exercised, or that its directors or officers will purchase any additional common stock, to increase microHelix's shareholders' equity sufficiently to meet Nasdaq's requirements. microHelix has no commitments from any Class B warrant holders to exercise their warrants or from any director or officer to purchase any more shares of common stock. Although microHelix believes that it can meet the conditions imposed by Nasdaq for continued listing of its securities on the Nasdaq SmallCap Market, there can be no assurance that it will be able to do so. If at some future date microHelix's securities should cease to be listed on The Nasdaq SmallCap Market, the Company expects that they may be eligible to for quotation on the OTC Bulletin Board. Delisting from The Nasdaq SmallCap Market may have an adverse effect on the liquidity of the Company's common stock and warrants. microHelix, Inc. is a leading designer, manufacturer and marketer of customized electronic micro-interconnect systems for the medical (ultrasound, minimally invasive and fully-implantable), commercial and military markets. microHelix's interconnect systems are designed into devices manufactured by OEM customers and are used in applications like medical ultrasound probes, electrophysiology cardiac mapping catheters, left ventricular assist devices and pain management devices. microHelix has 13 approved U.S. patents and 12 pending patents covering proprietary micro-miniature methods of manufacturing electronic interconnect systems and related technology. Statements in this press release, including statements regarding plans to resolve issues with Nasdaq listing requirements, other than statements of historical fact are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements reflect management's current views and estimates of future economic and market circumstances, industry conditions, company performance and financial results. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are subject to risks and uncertainties that could cause the Company's actual future results to differ materially from the results discussed herein. Factors that could cause or contribute to such differences include, but are not limited to, competition from existing or new products, production delays, lack of market acceptance of the Company's products, general economic conditions, the Company's inability to comply with the minimum bid price and shareholders' equity requirements of the Nasdaq listing rules, and such other risks and factors as are described from time to time in the Company's Securities and Exchange Commission filings. The forward-looking statements made today speak only as of today and the Company does not undertake any obligation to update any such statements to reflect events or circumstances occurring after today. DATASOURCE: microHelix, Inc. CONTACT: Terry Rixford, Chief Financial Officer of microHelix, Inc., +1-503-968-1600; or RCG Capital Markets Group, Inc., +1-480-675-0400, for microHelix, Inc.

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