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NASDAQ Temporarily Suspends Bid Price and Market Value Continued Listing Requirements

October 21, 2008

On October 16, 2008 The NASDAQ Stock Market filed a rule with the SEC to temporarily suspend Nasdaq's continued listing requirements related to bid price and market value of publicly held shares.  The rule, which became effective immediately upon its filing with the SEC, will be in effect through January 19, 2009.

In temporarily suspending the bid price and market value requirements, Nasdaq noted that the number of securities trading below $1 on Nasdaq had increased from 64 at September 30, 2007 to 227 on September 30, 2008, and to 344 on October 9, 2008, with an additional 300 Nasdaq-listed securities trading between $1 and $2.  Nasdaq further noted that from January 1, 2008 to September 30, 2008, the number of companies deficient in the market value of publicly held shares requirement more than doubled.

Nasdaq noted that there has been no fundamental change in the business model or prospects for many of the companies falling below the continued listing requirements, but that the decline in general investor confidence has resulted in depressed pricing for companies that otherwise remain suitable for continued listing.

During the temporary suspension of these requirements, Nasdaq intends to consider whether it is appropriate to propose further revisions to its requirements.  Although the rule is effective now, the SEC is soliciting comments, which should be submitted on or before the date 21 days after publication of the rule in the Federal Register.