Hamilton, Bermuda: 27 May 2002 - On May 16, 2002, Brek received a Nasdaq Staff Determination that Breks common stock during the 90-day period ending on May 15, 2002 had not maintained a closing bid price of $1.00 per share for the ten consecutive trading days necessary to qualify for continued listing on the National Market System, and that its common stock was therefore subject to de-listing from the Nasdaq National Market. This Determination by the Nasdaq staff was based upon a strict application of the Nasdaq Marketplace Rules despite the fact that on May 10, 2002 and each trading day thereafter, Breks common stocks closing bid price was $1.00 or higher.
Brek has appealed the staffs determination to a Listing Qualifications Panel on the basis that, among other considerations, its stock is now trading above $1.00. This appeal will stay the de-listing of Breks common stock until the Panels decision is announced. Should the Panel uphold the staffs determination to de-list Breks common stock, Brek will request that its common stock be listed on the Nasdaq SmallCap Market where it would be eligible for re-listing on the National Market System if it maintains a closing bid price of $1.00 for 30 consecutive trading days. The Panels decision is expected within 60 days.