LYNDHURST, N.J., Dec. 23, 2005 (PRIMEZONE) -- Harvey Electronics, Inc. ("Harvey Electronics", "Harvey" or the "Company")(Nasdaq:HRVE) announced today that it received a deficiency letter (the "Letter") on December 20, 2005 from The Nasdaq Stock Market indicating that the Company is not in compliance with the continued listing requirements on The Nasdaq Capital Market because for the previous 30 consecutive business days, the bid price had closed below the $1.00 minimum per share requirement for continued listing as set forth in Marketplace Rule 4310(c)(4) (the "Minimum Bid Price Rule"). The issuance by Nasdaq of such letters is standard procedure when a listed company does not meet the Minimum Bid Price Rule. By Nasdaq rule, Harvey will be provided 180 calendar days, or until June 19, 2006, to regain compliance with the Minimum Bid Price Rule. This Letter has no effect on the listing of the Company's common stock at this time.
The Letter also stated that, in accordance with Marketplace Rule 4310(c)(8)(E), if at any time before June 19, 2006, the bid price of the Company's common stock closes at or above $1.00 per share for a minimum of ten consecutive business days, the Company will be provided written notice that it complies under the Minimum Bid Price Rule. If compliance with the Minimum Bid Price Rule cannot be demonstrated by June 19, 2006, the Staff will determine whether Harvey meets The Nasdaq Capital Market initial listing criteria set forth in Marketplace Rule 4310(c), except for the bid price requirement. If the Company meets the initial listing criteria, the Company will be given notice that it has been granted an additional 180 calendar-day period to comply with the Minimum Bid Price Rule. If it is determined that the Company is not eligible for this additional compliance period, the Company will be provided written notice that its securities will be delisted. At that time, the Company may appeal the Staff's determination to de-list its securities to a Listing Qualifications Panel.
Harvey Electronics is a leading retailer and custom installer of high quality, exclusive home theater, audio and video products in the metropolitan New York area. The Company currently operates a total of nine locations; eight Harvey showrooms and one separate Bang & Olufsen branded store. There are two Harvey locations in Manhattan and six suburban locations in Paramus, New Jersey; Mt. Kisco, in Westchester; Greenwich, Connecticut; Greenvale/Roslyn, on the north shore of Long Island, in Eatontown, New Jersey and our newest store in Bridgewater, New Jersey. The Bang & Olufsen branded store is located in Union Square on 927 Broadway at 21st Street, in Manhattan. The Company also has a Bang & Olufsen showroom within our Harvey retail store in Greenwich, Connecticut.
Audio Video International, a well-respected trade publication, has named Harvey Electronics a national "Top Ten Retailer of the Year", seven years in a row.
Please visit a Harvey store or one of our Bang & Olufsen showrooms. Ask about our Trade-In and Trade-Up Program and turn your old ordinary audio components into cash, to be used towards the extraordinary products you have always wanted. Experience a Harvey home theater, including a high-definition plasma flat screen, LCD or DLP television, DVD player and superior audio components controlled by one, easy to operate, remote control and presented in beautifully designed home vignettes, also featuring the finest in audio/video furniture. Also, please inquire about Harvey's custom installation services.
From time to time, information provided by the Company, statements made by its employees or information, included in its filings with the Securities and Exchange Commission may contain statements, which are so-called "forward-looking statements" and not historical facts. Forward-looking statements can be identified by the use of words such as "believe", "expect", "intend", "anticipate", "in my opinion", and similar words or variations. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company's actual future results may differ significantly from those stated in any forward-looking statements. Forward-looking statements involve a number of risks and uncertainties, including, but not limited to, product demand, pricing, market acceptance, litigation, risks in product and technology development and other risk factors detailed in the Company's Prospectus dated March 31, 1998 and from time to time in the Company's Securities and Exchange Commission reports including its Form 10-K and Forms 10-Q.
For more information and showroom locations, visit our website at www.harveyonline.com.
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