SOURCE: Ulysses Holding Corp.

March 10, 2008 07:40 ET

Ulysses Holding Corp. to Retain an Outside Auditor, to Review Trading Activities in Its Securities

The Company Suspects Either Naked Short-Selling or Manipulation of Its Share Price

JACKSONVILLE, NY--(Marketwire - March 10, 2008) - Ulysses Holding Corp. (PINKSHEETS: UHCR) announced today that after a special weekend meeting between its management and advisors that the company will retain an outside auditor to review the trading activities and share counts of its securities.

The company has determined that this course of action is necessary to determine the continued stagnated price of its securities as the company continues to trade near its 10 day average with virtually all buying and minimal selling yet the share price continues to remain the same.

The management and their advisors believe that suspicious trades are or have taken place (suspected naked shorting and or phantom shares) as the company has lost 66% of share value/market cap (pre-dividend) within the last 30 days with no increase in the float (free trading shares) by the company.

The company has received evidence that certain brokers and banks may have issued phantom dividend shares to persons not entitled to receive them. Additionally, some brokers issued dividends prematurely to customers who sold before the issuance date, but the persons who bought the shares also received the dividends, creating a short position for the brokerage house that erred. In fact, some customers who received their dividends prematurely sold both their stock and the dividend, and the persons who bought the shares and dividend then received a dividend on both the original shares and the dividend shares. This appears to have resulted in non-existent shares being traded by the public.

According to published reports, over one percent of the company's shares are on the short sale list. Of course, the holders of the short positions would owe the dividend shares as well. This, of course, does not account for the broker errors or the improper naked short positions.

Management also noted that, perhaps learning from a similar situation which occurred with PAIVIS Corp., TD Ameritrade seems to be one of the few brokers that properly accounted for the dividend. The company received complaints that other brokers prematurely issued the dividend to some customers thus causing a need to create a massive cover in its securities.

"We are very concerned with the possible naked short selling of the company's securities and will take all legal measures to assure that this decimation of the company's share price be halted immediately, as it is my obligation as President & CEO to protect the company's and shareholders investment," said Clayton Young.

Clayton Young, President & CEO, also stated, "The company's year end revenues exceeded expectations along with the pending opening of an additional 4 units and the acquisition of SecureNetView that clearly the short-sellers (of which we believe) were not expecting our resolve in the growth of this company. We will utilize any and all legal remedies to protect our shareholders and the company including contacting the SEC, I would like to also thank the numerous loyal shareholders who have lent their time and energy in bringing this problem to our attention and I can assure all the shareholders that the company and myself will do everything possible to remedy these illegal activities that we believe are being perpetrated upon our company, I will be sure that we force each and every share to be accounted for and covered, upon the completion of our independent auditors findings."

This press release does not constitute an offer of any securities for sale. This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, the company's limited operating history and history of losses, the inability to successfully obtain further funding, the inability to raise capital on terms acceptable to the company, the inability to compete effectively in the marketplace, the inability to complete the proposed acquisition and such other risks that could cause the actual results to differ materially from those contained in the company's projections or forward-looking statements. All forward-looking statements in this press release are based on information available to the company as of the date hereof, and the company undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.

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