Contact Information: For more information please contact: Andrea Dray MIND CTI Ltd. Tel: +972-4-993-6666
MIND CTI Updates on Company Held Auction Rate Securities
| Source: MIND CTI Ltd.
YOQNEAM, ISRAEL--(Marketwire - June 3, 2008) - MIND C.T.I. LTD. (NASDAQ : MNDO ), a leading
provider of convergent end-to-end billing and customer care product based
solutions for tier 2 and tier 3 carriers worldwide, today announced an
update on its auction rate securities rating.
As previously announced, as of March 31, 2008, we have a total of $20.3
million invested in asset backed auction rate securities called
"Mantoloking CDO". While the liquidity of these investments has been
significantly impacted by market conditions, we continue to receive
interest payments every month, lately of around 3.4% per year. We are not
able to predict whether conditions in the market for these securities will
worsen or improve.
Recently we were advised that the Mantoloking CDO #564616AB6 has been
downgraded to Ba1 by Moody's and on CreditWatch with negative
implications. The security remains rated BBB by S&P.
As previously announced, we planned to complete an independent valuation of
this security in the second quarter, prior to the publication of our
audited financial statements. We have almost completed this process and we
expect to file the full 2007 financials and the year report as requested,
by June 30, 2008.
As previously announced, on February 20, 2008, we filed a Statement of
Claim with the Financial Industry Regulatory Authority and commenced an
arbitration against the international bank and certain employees thereof
that invested these funds on behalf of the Company. We intend to pursue
the arbitration vigorously. The arbitration, however, has just begun and
no predictions of possible outcomes can be made at this time.
About MIND
MIND CTI Ltd. is a leading provider of convergent prepaid and postpaid
end-to-end billing and customer care solutions for Wireless, Wireline, VoIP
and Quad-play carriers worldwide. A global company, with over ten years of
experience in providing solutions to carriers, MIND operates from offices
in Europe, Israel and the United States, serving customers in more than 40
countries around the world. For more information, visit MIND at:
www.mindcti.com.
Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the
Private Securities Litigation Reform Act of 1995: All statements other than
historical facts included in the foregoing press release regarding the
Company's business strategy are "forward-looking statements." These
statements are based on management's beliefs and assumptions and on
information currently available to management. Forward-looking statements
are not guarantees of future performance, and actual results may materially
differ. The forward-looking statements involve risks, uncertainties, and
assumptions, including the risks discussed in the Company's filings with
the United States Securities Exchange Commission. The Company does not
undertake to update any forward-looking information.