SOURCE: Burst.com, Inc.

May 09, 2005 15:44 ET

Burst.com, Inc. Clarifies Ex-Dividend Date

SANTA ROSA, CA -- (MARKET WIRE) -- May 9, 2005 -- In response to a multitude of recent inquiries from investors and shareholders, Burst.com, Inc. (OTC: BRST) issued the following clarification regarding the upcoming payment of a $.90 per share dividend, and the associated "ex-dividend" date:

As previously announced, the dividend will be payable by the Company to stockholders of record as of May 6, 2005. Because of the magnitude of the special cash dividend, the NASD has determined that the ex-dividend date for trading will be May 17, 2005, the business day following the May 16th transfer agent's payable date for the special cash dividend. Burst stockholders of record on the May 6, 2005 record date who subsequently sell their shares of common stock through the close of trading on the May 16th payable date for the special cash dividend will also be selling their right to receive the special $.90 cash dividend. Shareholders of record on May 6th that choose to sell their shares after May 6th but prior to May 17th will be obligated to pass the $.90 per share dividend on to the buyer of the shares that they sell. This is an automated process handled by the clearing agent.

Shareholders who may have sold shares since May 6th are advised that if their actual intention was to receive the dividend, they can re-purchase shares in the open market and then wait until the ex-dividend date (May 17th) to sell. Investors are encouraged to consult with their financial advisors regarding the specific implications of the deferral of the ex-dividend date.

The $ .90 per share cash dividend is expected to be taxable to stockholders at the dividend tax rate since it takes into account the extent of the Company's accumulated and current earnings and profits for the 2005 calendar year. The dividend will not be considered a return of capital to stockholders. Stockholders are encouraged to consult with their financial advisors regarding the circumstances of their individual tax situation.

More information about Burst.com is available at www.burst.com.

Contact Information

  • For Further Information Contact:
    Richard Lang
    707-541-3870