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To: kbert who wrote (9898)	11/17/1998 12:55:00 PM
From: MskiHntr	Read Replies (2) \| Respond to of 44908

-----------------OFF TOPIC----------------------------------- - 11/17 11:36A (DJ) +K-tel: Nasdaq Says Co. Fails To Meet Listing Requirements Story 3289 +K-tel Does Not Meet Nasdaq Tangible Net Asset Requirement K-tel Reveals Prospect Of Delisting In SEC Filing Co. Heard Of Delisting Prospect 3 Wks Ago NEW YORK (Dow Jones)--K-Tel International Inc. (KTEL) said its has been notified by the Nasdaq Stock Market that the company failed to meet the "minimum tangible net asset requirement" necessary for continued listing on the Nasdaq National Market. K-Tel President Larry Kieves told Dow Jones the company received the letter from Nasdaq about the delisting risk about "three weeks ago." The company released the information in a filing with the Securities and Exchange Commission that was made public Tuesday. Kieves said K-Tel did not issue a K-tel: Nasdaq Says Co. Fails To Meet Listing Requirements from Nasdaq about the delisting risk about "three weeks ago." The company released the information in a filing with the Securities and Exchange Commission that was made public Tuesday. Kieves said K-Tel did not issue a press release at the time the company found out about the possibility of delisting because it did not consider it to be "material" to shareholders. K-Tel has requested a hearing on the delisting procedures before the Nasdaq Listing Qualifications Panel. The company hopes to obtain a temporary extension to the listing requirements and an opportunity to raise additional capital. Kieves said the hearing has been scheduled sometime "in the next couple of months Pres Says Co. Expects To Comply Soon To be listed on the Nasdaq National Market, a company needs net tangible assets - which is total assets minus total liabilities minus goodwill - of at least $4 million. K-Tel President Kieves said the company does not meet the minimum tangible net asset requirement for listing on Nasdaq's National Market because the K-tel: Nasdaq Says Co. Fails To Meet Listing Requirements company "wrote down a lot" in its latest quarter. K-Tel posted a loss of 37 cents a share on revenue of $18.8 million for its fiscal first quarter ended Sept. 30, compared with net income of 16 cents a share on revenue of $25.1 million a year earlier. The loss for the latest quarter includes a $1.6 million charge for the discontinuation of marketing and distribution activities for certain marginal business lines, including K-Tel's retail home-video products, and writeoffs of remaining assets from its curtailed third-party media-buying operation. It also includes a $600,000 loss from continued investments in the company's electronic commerce operations. Kieves told Dow Jones that K-Tel expects to be in compliance with the listing requirements for Nasdaq's National Market soon. He said the company could come into compliance by raising additional capital through a secondary offering or another means of financing. "It's not the hardest thing in the world to comply," he said. Kieves added that if K-Tel is delisted from Nasdaq's National Market, the company would probably list on Nasdaq's small cap market. (MORE) DOW JONES NEWS 11-17-98