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Microcap & Penny Stocks : HITSGALORE.COM (HITT) -- Ignore unavailable to you. Want to Upgrade?

To: lizardK who wrote (3017)	7/24/1999 2:31:00 PM
From: bob sims	Read Replies (1) \| Respond to of 7056

Hitsgalore.com Board Of Directors Re-Instates Dorian Reed Business Wire - July 08, 1999 15:59 RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--July 8, 1999-- Hitsgalore.com, Inc. (OTC BB:HITT) today stated that its independent, outside directors, which comprise 75% of the members of Hitsgalore.com's board, unanimously agreed to reinstate Dorian Reed as Chief Technology Officer and a member of the board after a thorough review of all the allegations involving Reed's supposed involvement of fraud in SEC filing. The independent directors' conclusion, as reported by Dan Grant, is that "the statements contained in a May 11, 1999 Bloomberg article about Mr. Reed or Hitsgalore.com falsifying information in the SEC filing are false and misleading. The independent directors have carefully reviewed and acknowledges Mr. Reed's personal issues with the FTC, a civil matter that is now being appealed by Mr. Reed after he was served this past May with a default judgment. The committee has also reviewed other disclosures made voluntarily by Mr. Reed, including those made in the Company's Form 10-K regarding his 1992 criminal conviction. The independent directors are comfortable with Mr. Reed and his ability to provide valuable services to the Company." The independent directors further concluded, "Mr. Reed performed well in providing a sound direction for the Company, which had lead to the stock having a market value over $20.00 per share before the false and misleading statements were made in the Bloomberg article. In addition to being the developer of the technology behind the Company's successful and profitable website, Mr. Reed has a solid understanding of the Internet." "There exists no sound reason for Mr. Reed not to be re-appointed to the Board. His stepping down in the first place shows his willingness to put the Company's well-being ahead of his own ego, and also indicates his desire to clear his name and let us seek the truth in all these matters", said Dan Grant, a Hitsgalore.com independent board member. Grant continued, "The directors are pleased that Reed, despite all the controversy, continued to keep Hitsgalore.com on the cutting edge of technology, with many new Portal Services and other innovations under development, some of which will be released soon in a re-designed website." The Board issued the following statement, "The directors are aware of three lawsuits filed against Hitsgalore.com in the past few weeks that allege violations of the federal securities laws and that request class action treatment. Although we believe that these lawsuits are entirely without merit, we wouldn't be surprised if there were others similarly based on the misinformation contained in the Bloomberg article. The recent class action lawsuits filed against the Company in the United States District Court for the Central District of California are without merit and appear to be based upon certain false and misleading statements contained in a May 11th Bloomberg article." As reported in the Company's June 16, 1999 Press Release, Carl F. Schoeppl, the Company's attorney hired to defend the putative class action lawsuits, observed that all three suits appear to be based upon the same factual misconceptions contained in the May 11, 1999 Bloomberg article. "Any statements implying that Hitsgalore.com lied about or intentionally failed to omit the FTC's civil action against Dorian Reed in SEC filings, press releases or other public statements are simply false," Mr. Bradford, CEO of Hitsgalore.com declared. "We believe that the Company will be successful in proving the falsity of the claims that Hitsgalore.com somehow violated the federal securities laws, both through the defense of the class action lawsuits as well as the successful prosecution of the Company's recently-filed defamation suit against the individuals who published and republished these false and negative statements on the Internet bulletin boards," stated Mr. Bradford. CONTACT: Hitsgalore.com, Inc., Rancho Cucamonga Danny Gavin, Investor Relations: 800/300-5388 or investor@hitsgalore.com