StarMedia Network announced that it received a Nasdaq Staff Determination on November 21, 2001, indicating that, due to its failure to file its Form 10-Q for the period ended September 30, 2001, StarMedia is not in compliance with the requirement for continued listing set forth in Nasdaq's Marketplace Rule 4310(c)(14), and that its securities are, therefore, subject to delisting from The Nasdaq National Market.
StarMedia has requested a hearing before a Nasdaq Listing Qualifications Panel to review the Staff Determination. Pending the outcome of this review, the delisting of the Company's securities will be stayed. There can be no assurance the Panel will grant StarMedia's request for continued listing. If the Company is unsuccessful in its appeal, it will evaluate other available alternatives.
As previously announced, the Company intends to file its Quarterly Report on Form 10-Q for the quarter ended September 30, 2001 promptly after completion of its investigation of accounting issues with respect to revenue recognition by two of the company's Mexican subsidiaries, as well as any required restatement of its prior financial statements.