NIAG Niagara (MM)

Niagara Corporation Files to Deregister and Delist its Common Stock Expects to Trade on Pink Sheets NEW YORK, April 28 /PRNewswire-FirstCall/ -- Niagara Corporation announced today that it has filed a Form 15 with the Securities and Exchange Commission to deregister its common stock under the Securities Exchange Act of 1934. The Company expects that the termination of its registered company status will be effective within 90 days. As a result of this filing, the Company's obligation to file with the SEC certain reports and forms, including Forms 10-K, 10-Q and 8-K, was immediately suspended. The Company expects to realize significant savings of both costs and time as a result of it being relieved of SEC periodic reporting requirements, particularly in light of the substantial increases necessitated by the Sarbanes-Oxley Act of 2002 and associated SEC and Nasdaq rules. Although Niagara's shares no longer will be quoted on the Nasdaq National Market, it is expected that the Company's common stock will be quoted on the Pink Sheets. The Pink Sheets is the leading provider of pricing and financial information for the over-the-counter (OTC) securities markets. It is a centralized quotation service that collects and publishes market maker quotes in real time primarily through its website, http://www.pinksheets.com/, which provides stock and bond price quotes, financial news and information about securities traded. Niagara will continue to hold annual stockholders meetings and intends to provide its stockholders with quarterly financial information and annual financial statements. Niagara also intends to update its stockholders with information about the Company through mailings and/or postings on the Company's web site at http://www.niag.com/. In commenting on these developments, Michael Scharf, Chairman, President and CEO of Niagara stated: "After careful consideration, our Board of Directors unanimously decided to take this action because it believes that the burdens associated with operating as a registered public company currently outweigh any advantages to the Company and its stockholders. Among the matters the Board considered were the following: * the costs, both direct and indirect, incurred by the Company each year in connection with preparing and filing periodic reports with the SEC; * the substantial increase and expected further substantial increase in costs associated with remaining a registered public company in light of the requirements of the Sarbanes-Oxley Act of 2002 and the related SEC and Nasdaq rules; * the benefits of permitting senior management of the Company to spend less time on report preparation, which will allow them to devote full attention and effort to the Company's operations; and * the fact that Niagara does not regularly use its public stock to consummate acquisitions and it has not, in the recent past, raised capital in the public marketplace, nor does it plan to do so in the future. We believe that our stockholders are better served with the Company deregistering at the present time, allowing management to focus all resources on implementing the Company's business plan, in an effort to enhance long-term stockholder value." This release contains certain "forward-looking statements" made pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company, which may cause the Company's actual results to be materially different from those expressed or implied by such statements. Such risks, uncertainties and other factors include those described in the Company's filings with the Securities and Exchange Commission. The forward-looking statements made herein are only made as of the date of this release, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. DATASOURCE: Niagara Corporation CONTACT: Michael Scharf, CEO of the Niagara Corporation, +1-212-317-1000 Web site: http://www.niag.com/ http://www.pinksheets.com/

Copyright