DENVER, May 30, 2003 (PRIMEZONE) -- Koala Corporation (Pink Sheets:KARE), a diversified business-to-business provider of family-friendly products and solutions, is providing shareholders with an update of recent events and explaining the Company's new communications and disclosure procedures during the Company's Annual Meeting of Shareholders this morning.
As disclosed earlier, Koala recently filed to deregister its common stock and has suspended its periodic reporting obligations under the Securities Exchange Act of 1934. The Company will nevertheless continue to report audited annual financial results, and also will issue news releases communicating important corporate developments, new-business awards and significant financial transactions. However, the Company will no longer report quarterly financial results.
Jim Zazenski, president and chief operating officer, said, "In light of the significant expense and time commitment associated with maintaining our status as a reporting company, we determined that proactively deregistering our common stock was a prudent and cost effective step. Although Koala is no longer subject to certain reporting requirements, we continue to view shareholder communications as an important corporate function, and we intend to keep our supporters apprised of our annual financial results and key developments within the Company."
Zazenski stated that management was pleased by the Company's many accomplishments during the past year and the impact they are having on current operations. Among other things, he cited the first major installation of Koala's new WaterColors(tm) product line, which commenced earlier this week, as well as encouraging feedback from the Company's new sales team. He also said management is continuing its efforts to recapitalize the Company, and has engaged an investment banker to assist in developing and executing the Company's recapitalization plan.
Koala's shares are now traded on the Pink Sheets(r). Quotes, trading volume, stock data and corporate news releases can be found on the Pink Sheets website, located at www.pinksheets.com. Koala will continue to distribute news releases to the Company's fax and email distribution lists, and also will post news releases on the Company's corporate website, located at www.koalabear.com. Individuals also can contact the Company's investor relations firm, PfeifferHigh Public Relations, Inc., at 303-393-7044 with questions or to request inclusion on Koala's distribution lists.
Founded in 1986, Koala Corporation is an integrated provider of products and solutions designed to help business become "family friendly" and allow children to play safely in public. The company develops and markets a wide variety of infant and child protection and activities products, which are marketed under the company's recognizable "Koala Bear Kare" brand name. Koala's strategic objective is to address the growing commercial demand for safe, public play environments for children, as well as products and solutions that help businesses create family-friendly atmospheres for their patrons.
Statements made in this news release that are not historical facts may be forward-looking statements. Such statements include statements of belief, such as statements about the impact of deregistration, and projections regarding future events, such as the continued quotation of the company's stock on the Pink Sheets, and are based upon Koala's current expectations and assumptions, which are subject to a number of risks and uncertainties. Actual results may differ materially from those projected in any forward-looking statement. There are a number of important factors that could cause actual results to differ materially from those anticipated by any forward-looking information. A description of risks and uncertainties attendant to Koala Corporation and its industry and other factors which could affect the company's financial results are included in the company's filings with the Securities and Exchange Commission including its most recent Annual Report on Form 10-K.
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