Gateway Industries, Inc. Announces Intention to De-Register Its Common Stock With the Securities and Exchange Commission NEW YORK, Jan. 8 /PRNewswire-FirstCall/ -- Gateway Industries, Inc. (BULLETIN BOARD: GWAY.OB) today announced that it intends to file a Form 15 on January 12, 2004 with the Securities and Exchange Commission to de-register its common stock and suspend its reporting obligations under the Securities Exchange Act of 1934. The Company expects the de-registration to become effective within ninety (90) days of the filing with the SEC. As a result of the filing of the Form 15, the Company's obligation to file with the SEC certain reports and forms, including Forms 10-KSB, 10-QSB and 8-K, will immediately cease. The Company presently intends to continue to provide its stockholders with periodic financial and other information on its web site, http://www.gatewayindustries.com/. The Company's shares will no longer be listed on the OTC Bulletin Board. The Company anticipates that its shares will be traded on the Pink Sheets, but can make no assurances that any broker will make a market in the Company's common stock. The "Pink Sheets" is a centralized quotation service that collects and publishes market maker quotes in real time, primarily through its web site, http://www.pinksheets.com/. The Company's Board of Directors determined, after careful consideration, that de-registering is in the overall best interests of the Company's stockholders. Several factors were considered by the Board of Directors in making this decision, including the following: -- The elimination of disproportionately large costs associated with the preparation and filing of the Company's periodic reports and other filings with the SEC; -- The elimination of substantial increases in legal, audit and other costs associated with being a public company in light of new regulations promulgated as a result of the Sarbanes-Oxley Act of 2002 and the SEC rules thereunder; -- The ability to improve communications with stockholders; -- The nature and extent of current trading in the Company's common stock, which is limited; -- The concentration of stock ownership in relatively few holders of the Company's common stock; and -- The lack of analysts' coverage and minimal liquidity for the Company's common stock. Warren G. Lichtenstein, Chairman and Chief Executive Officer of the Company, commented that "After careful consideration by the Board of Directors and our advisors, we believe we can deliver significantly more value to the stockholders as a non-reporting company. Particularly in view of the new rules promulgated under the Sarbanes-Oxley Act of 2002, the administrative costs and expenses associated with continuing as a public company is difficult to justify from a financial and strategic standpoint for a company of this size and market capitalization. As a non-reporting company, we will significantly reduce our legal and audit fees and senior management can dedicate more time to the company's business and operations. We are confident these advantages, coupled with our improved ability to communicate with stockholders and our intention to update stockholders with financial information on the company's web site should optimize long-term stockholder value." Additionally, effective January 30, 2004, Maritza Ramirez will resign from her position as Chief Financial Officer of the Company to pursue other interests. Statements included in this press release that are not historical in nature are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "1995 Act"). The words "believe," "expect," "anticipate," "estimate," "guidance," "target" and similar expressions identify forward-looking statements. The Company cautions readers that forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected in the forward-looking statements. Certain risks and uncertainties are identified from time to time in the Company's reports filed with the SEC. The Company claims the protection of the safe harbor for forward-looking statements contained in the 1995 Act. DATASOURCE: Gateway Industries, Inc. CONTACT: Warren G. Lichtenstein of Gateway Industries, Inc., +1-212-758-3232 Web site: http://www.gatewayindustries.com/

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