RANCHO DOMINGUEZ, Calif., Jan. 17, 2006 (PRIMEZONE) -- Because of a data entry error made by NASDAQ and its ongoing consequences, UTi Worldwide Inc. (Nasdaq:UTIW) today issued the following clarification:
1) UTi did not declare a cash dividend in November 2005 as
erroneously reported by NASDAQ in November 2005 on a private
online network for brokers. Historically, the company's Board
of Directors considers a possible declaration of an annual cash
dividend each April, with the most recent annual cash dividend
having been declared on April 7, 2005 with a payment date of May
20, 2005.
2) On November 22, 2005, NASDAQ apparently uploaded a dividend data
file that contained a wrong CUSIP number. The mistake resulted
in an erroneous posting by NASDAQ to a private online network
incorrectly alerting brokers that UTi would pay a cash dividend
in December. This dividend was never declared by UTi.
3) On December 9, 2005, NASDAQ posted a note to the same network,
deleting the dividend and noting that the prior entry had been
made in error.
"It has become clear to us that NASDAQ's first posting on November 22 has unfortunately set numerous back office actions into motion for our shareholders and investors that have yet to be completely unwound," said Lawrence R. Samuels, UTi's chief financial officer. "We have been working with NASDAQ for weeks to resolve this issue as it has confused our shareholders and investors and caused unnecessary concern among money managers. Over the past several weeks, we have become aware of dividend credits being incorrectly posted to some investors' accounts without being funded, checks being mistakenly sent to some shareholders, and miscommunications with money managers who wondered if there were some financial issues with UTi because they had been mistakenly told by their back office administrators that UTi had declared and then rescinded a dividend. Consequently, we now believe it necessary to issue this news release in order to advise our shareholders and other interested parties of the ongoing consequences resulting from NASDAQ's erroneous posting."
NASDAQ, additionally, is expected to post a new note to its private online broker network that will substantially state:
"ERROR NOTICE: Refer to the daily lists of 11/22/2005 and 12/9/2005: The $0.25 dividend for UTIW shareholders of record on 12/1/2005 was posted by mistake due to a NASDAQ data error. The last dividend paid by UTIW was announced on the daily list of 4/7/2005 and there have been no dividends since. NASDAQ has been advised that some firms have erroneously credited customer accounts based on the original announcement on 11/22/2005. Please update your internal records and databases to note that the dividend did not occur and should not be reflected in customer accounts."
Based on the company's knowledge of what has transpired since the error, UTi makes the following suggestions to its shareholders and investors and others:
1) Check brokerage accounts. If a dividend credit has been
incorrectly posted, contact your broker to explain the error
and have the credit removed.
2) If a shareholder mistakenly received a dividend check, whether
or not it has been deposited, contact the sender -- either your
brokerage or the company's transfer agent -- for instructions.
3) To back office administration services: Check your records to
determine if credits have been automatically posted to accounts
holding UTi Worldwide ordinary shares in error.
4) Watch out for erroneous 1099 forms that could mistakenly notify
the federal government of a cash dividend that was never
received.
5) If shareholders have other concerns regarding this dividend
mistake, they should contact UTi's investor relations agency,
PondelWilkinson at 310.279.5980 and ask for either Cecilia
Wilkinson (cwilkinson@pondel.com) or Angie Yang
(ayang@pondel.com).
"We regret the confusion that NASDAQ's mistake has caused to our shareholders," Samuels added, "and we continue to work with NASDAQ to resolve any remaining unforeseen problems."
About UTi Worldwide
UTi Worldwide Inc. is an international, non-asset based global integrated logistics company providing air and ocean freight forwarding, contract logistics, customs brokerage and other supply chain management services. The company serves a large and diverse base of global and local companies, including customers operating in industries with unique supply chain requirements such as the pharmaceutical, apparel, chemical, automotive and technology industries. The company seeks to use its global network, proprietary information technology systems, relationships with transportation providers and expertise in outsourced logistics services to deliver competitive advantage to each of its customers' global supply chains.
Safe Harbor Statement
Certain statements in this news release may be deemed to be 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. The company intends that all such statements be subject to the "safe-harbor" provisions contained in those sections. Such statements may include, but are not limited to, the actions being taken to resolve the error made by NASDAQ. Many important factors may cause the company's actual results to differ materially from those discussed in any such forward-looking statements, including a challenging operating environment; increased competition; the effects of increasing fuel prices, integration risks associated with acquisitions; the effects of changes in foreign exchange rates; changes in the company's effective tax rates; industry consolidation making it more difficult to compete against larger companies; general economic, political and market conditions, including those in Africa, Asia and Europe; risks of international operations; the success and effects of new strategies, disruptions caused by epidemics, conflicts, wars and terrorism; and the other risks and uncertainties described in the company's filings with the Securities and Exchange Commission. Although UTi believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the results contemplated in forward-looking statements will be realized. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by UTi or any other person that UTi's objectives or plans will be achieved. The historical results achieved by the company are not necessarily indicative of its future prospects. UTi undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.