DESOTO, Texas, Jan. 12, 2005 (PRIMEZONE) -- eTelcharge.com, Inc. (Pink Sheets:ETLC) reported today that a new Securities and Exchange Commission regulation governing short selling, known as Regulation SHO, has listed eTelcharge.com on the Threshold Security List dated Tuesday, January 11, 2005. Regulation SHO took effect January 3, and provides a new regulatory framework governing short selling of securities. It is designed with the objective of simplifying short sale regulation and providing controls.
Despite share price tripling in value since the start of the last quarter, eTelcharge remains optimistic that Regulation SHO will have a positive impact on extenuating future abuse by short sellers who may have limited the Company's value in the face of significant progress in the areas of overall growth and product development. Until recently, this short position data has been impossible to validate with any degree of certainty, but now, such information should be a matter of public record.
In practice, brokerage firms in general have to locate securities before accepting a short sale, a process known as "affirmative determination." In addition, brokerage firms have to borrow a security or be able to provide it for delivery on demand on the settlement date, three days after the transaction. If a firm cannot deliver the securities by settlement day, the trade is considered failed. Such failed trades are expected to be rectified without delay, but the industry has not been diligent in rectifying these failed trades or open short positions. Regulation SHO was created out of a need to enforce the settlement of failed trades by providing guidelines, updated reporting tools and potential brokerage trading penalties resulting in a more secure system of checks and balances.
"Certainly eTelcharge's inclusion on this Threshold Security List brings light to our assertion that there have been considerable naked short positions that may have caused failed deliveries of eTelcharge.com shares, which results are a significant loss on shareholder value. It is obvious to me that this practice as drained value from our shareholders and we intend to aggressively monitor these developments as they pertain to our shareholders equity. With Regulation SHO taking effect, we are armed and ready to reduce the depreciating impact that we believe illegal short selling has had on eTelcharge.com's value," stated President and CEO Carl O. Sherman.
The NASDAQ will publish the Threshold Security List on each subsequent settlement day prior to midnight, eastern time. NASDAQ's list contains information for NASDAQ Issues (NNM and SmallCap), OTCBB Issues, and Other OTC Issues. The list is updated daily and includes securities with excessive certificate delivery failures most commonly associated with the illegal practice of "Naked Short Selling." The current list can be viewed at www.nasdaqtrader.com/asp/regsho.asp or by visiting nasdaq.com
ABOUT ETELCHARGE.COM
eTelcharge.com (ETLC) offers the traditional credit card merchant services, checks and other existing financial infrastructure of banks along with the proprietary new online currency that provides online shoppers the exclusive choice to charge items to their telephone bill. Designed to reduce the risk of identity fraud and identity theft by providing an Internet credit option for online shoppers to charge items sold over the Internet. This payment option is a perfect match for the 70 million Americans who do not own a credit card. eTelcharge.com is currently the only company with the ability to charge a category of products to the home phone bill. Clearly, past electronic commerce solutions have not employed effective security and privacy techniques that adequately address consumer concerns about privacy and security on the Internet today. The release of the latest version of the proprietary phone billing option is scheduled to be launched early 2005. For more information, go to http://www.eTelcharge.com.com.
This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements involve a number of known and unknown risks and uncertainties that may cause eTelcharge.com, Inc. and actual results or outcomes to be materially different from those anticipated and discussed herein. These include its historical lack of profitability, the need for additional capital, end-use customers' acceptance of new products and actual demand, which may differ significantly from expectance of new products and actual demand, which may differ significantly from expectations, the need for eTelcharge.com, Inc. to manage its growth, and other risks associated.
For further information please contact: Public Relations eTelcharge.com, Inc. 1636 N. Hampton Road, Suite 270 DeSoto, Texas 75115 972-298-3800 publicrelations@etelcharge.com www.etelcharge.com