SANTA ANA, Calif., Sept. 1, 2006 (PRIMEZONE) -- SimpleTech, Inc. (Nasdaq:STEC), today announced that its top four senior executives have adopted pre-arranged stock trading plans during the company's previous open trading window period. The plans provide for potential sales of stock and the exercise and sale of stock issued upon exercise of vested stock options over time. The executives have informed the Company that these stock sales are part of their individual long-term strategies for asset diversification and liquidity. Sales under such plans will result in an increased number of shares in the company's public float and are expected to increase liquidity. The stock trading plans were adopted in accordance with guidelines specified under Rule 10b5-1 of the Securities and Exchange Act of 1934, as amended, and SimpleTech's policies regarding stock transactions.
The following senior executives have elected to enter into stock trading plans:
-- Manouch Moshayedi, Chairman and Chief Executive Officer
-- Mike Moshayedi, President
-- Mark Moshayedi, Chief Operating Officer, Chief Technical Officer
and Secretary
-- Dan Moses, Executive Vice President and Chief Financial Officer
The stock trading plans cover approximately 5.4 million shares of common stock and stock options held by the four senior executives, representing approximately 19% of the executives' combined holdings of approximately 29.5 million shares and stock options. The four senior executives currently own approximately 60% of the company's outstanding common shares (assuming the inclusion of shares of common stock subject to vested stock options held by such executives) as of today's date. If all shares subject to the stock trading plans are sold, the four senior executives will own approximately 49% of the company's outstanding shares (assuming the inclusion of shares of common stock subject to vested stock options held by such executives) as of today's date. Sales under the stock trading plans may begin in September 2006. Sales under stock trading plans have the effect of spreading stock trades over an extended period of time and are thereby intended to reduce market impact.
Rule 10b5-1 allows corporate officers and directors to adopt written, pre-arranged stock trading plans for the orderly sale of predetermined amounts of securities. Such plans may be adopted only when the officers and directors are not in possession of material and non-public information. The rule allows individuals adopting such plans to sell shares over a specified amount of time, at specific prices in the future, even if subsequent material and non-public information becomes available to them.
About SimpleTech, Inc. (Nasdaq:STEC)
SimpleTech, Inc. designs, develops, manufactures and markets custom and open-standard memory solutions based on Flash memory and DRAM technologies, and external storage solutions. Headquartered in Santa Ana, California, the company specializes in developing high-density DRAM memory modules and high-speed, high-capacity solid-state Flash drives and memory cards used in sensitive and highly-volatile environments. For information about SimpleTech, Inc., and to subscribe to the company's "Email Alert" service, please visit our web site at www.simpletech.com, click "Investors" and then Email Alert.
The SimpleTech logo is available at http://www.primezone.com/newsroom/prs/?pkgid=1079
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This release contains forward-looking statements that involve risks and uncertainties, including, but not limited to, statements concerning the ownership percentage of the four senior officers following sales under their stock trading plans; the effect of sales under the stock trading plans on the market, public float and increased liquidity. Such forward-looking statements are based on current expectations and involve inherent risks and uncertainties, including factors that could delay, divert or change any of them, and could cause actual outcomes and results to differ materially from current expectations. Important factors which could cause actual results to differ materially from those expressed or implied in the forward-looking statements are detailed under "Risk Factors" in filings with the Securities and Exchange Commission made from time to time by SimpleTech, including its Annual Report on Form 10-K, its quarterly reports on Form 10-Q, and its current reports on Form 8-K. Other factors that could cause our actual results to differ materially from those expressed or implied in the forward-looking statements include the following risks: changes in demand from certain customer segments; the cost of raw materials may fluctuate widely in the future; delays in the qualification process of our products with customers; our backlog may not result in future revenue; slower than expected expansion of our international business; we may not realize the anticipated benefits from any acquisitions of businesses, technologies, or assets we have made and may undertake in the future; excess availability of DRAM or Flash memory could reduce component pricing resulting in lower average selling prices and gross profit; DRAM or Flash memory supply may tighten requiring suppliers to place their customers, including us, on limited component allocation; effects of seasonality; interruptions or delays at the semiconductor manufacturing facilities that supply products to us; higher than expected operating expenses, including costs related to our planned opening of a manufacturing facility in Malaysia; new and changing technologies limiting the applications of our products; our inability to become more competitive in new and existing markets; our inability to maintain and increase market share; difficulty competing in sectors characterized by aggressive pricing and low margins; higher than anticipated product returns, inventory write-downs, price protection and rebate charges; new customer and supplier relationships may not be implemented successfully; impact of our previously announced stock repurchase program; higher than anticipated capital equipment expenditures; adverse global economic and geo-political conditions, including acts of terror, business interruption due to earthquakes, hurricanes, pandemics, power outages or other natural disasters; and potential impact of high energy prices and other global events outside of our control which could adversely impact consumer confidence and hence reduce demand for our products. The information contained in this press release is a statement of SimpleTech's present intention, belief or expectation. SimpleTech may change its intention, belief or expectation, at any time and without notice, based upon any changes in such factors, in SimpleTech's assumptions or otherwise. SimpleTech undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events.