SOURCE: Channell Commercial Corporation

April 29, 2008 13:00 ET

Channell Receives Letter From Nasdaq Regarding Independent Director Requirements

TEMECULA, CA--(Marketwire - April 29, 2008) - Channell Commercial Corporation (NASDAQ: CHNL), a designer and manufacturer of telecommunications equipment supplied to operators of communications networks worldwide and water harvesting solutions distributed in markets throughout Australia and North America, today announced that on April 25, 2008, the Company received a letter from the Nasdaq Stock Market ("Nasdaq") notifying the Company that it no longer complies with the majority independent director and audit committee listing requirements as set forth in Nasdaq Marketplace Rule 4350, as a result of the resignation of Stephen Gill from the Board of Directors of the Company. As previously reported, on February 11, 2008, Stephen Gill, who was one of the Company's independent directors and a member of the Company's audit committee, resigned from the Board of Directors in order to dedicate more of his efforts to other business initiatives. Consistent with Nasdaq Marketplace Rules 4350(c)(1), Nasdaq is providing the Company a cure period to regain compliance as follows:

--  until the earlier of the Company's next annual shareholders' meeting
    or February 11, 2009; or
--  if the next annual shareholders' meeting is held before August 11,
    2008, then the Company must evidence compliance no later than August 11,
    2008.
    

Since the Company intends to hold its next annual shareholders' meeting before August 11, 2008, the Company will have until August 11, 2008 to regain compliance. The Company fully intends to regain compliance with Nasdaq Marketplace Rule 4350 within the allotted cure period.

About Channell

Channell Commercial Corporation is a designer and manufacturer of telecommunications equipment supplied to communications network operators worldwide and water storage tanks distributed in markets throughout Australia and North America. Major product lines include a complete line of thermoplastic and metal fabricated enclosures, advanced copper termination and connectorization products, fiber-optic cable management systems and polyethylene water storage tanks. The Company's headquarters and U.S. manufacturing facilities are in Temecula, California. International operations include facilities in Toronto (Canada), London (U.K.) and various locations throughout Australia. The Company's website is www.channell.com.

Forward-Looking Statements

This news release contains statements that are not historical in nature and that may be characterized as "forward-looking statements" within the meaning of the securities laws. These statements are based on management's current expectations, are neither promises nor guarantees, and are subject to a number of uncertainties and risks that could cause a failure to comply with these forward-looking statements. Important factors that could cause a failure to comply with the forward-looking statements include, but are not limited to: (1) obsolescence of Company products resulting from technological change, (2) ability to anticipate changes in technology and industry standards in order to successfully develop and introduce new products, (3) dependence on a few customers for a large percentage of sales, (4) dependence on the telecommunications industry to represent a substantial portion of the Company's total sales, (5) customer demand, (6) material costs and the availability of complementary products, (7) energy costs, (8) integration of acquired businesses, (9) delays in product development, (10) operating leverage, (11) seasonality and fluctuations in operating results and (12) worldwide economic conditions. Such uncertainties are discussed further in the Company's filings with the Securities and Exchange Commission, which you are encouraged to review in connection with this release. You should not place undue reliance on any such forward-looking statements in this press release, which are current only as of the date when made, and you should not expect that these forward-looking statements will be updated or supplemented as a result of changing circumstances or otherwise.

Contact Information

  • CONTACT:
    At the Company:
    Michael Perica
    Treasurer
    951-719-2600
    Email Contact