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OTC Disclosure & News Service

 

YOUTHSTREAM MEDIA NETWORKS, INC. FILES TO DEREGISTER AND DELIST ITS COMMON STOCK

Oct 12, 2006

OTC Disclosure & News Service

- New York, NY, October 12, 2006 - YouthStream Media Networks, Inc. (YSTM) filed a Form 15 with the Securities and Exchange Commission (the "SEC") to deregister its common stock under the Securities and Exchange Act of 1934 on September 18, 2006. As a result of this filing, the company's obligation to file certain reports and forms with the SEC, including Forms 10-K, 10-Q and 8-K, was immediately suspended. The Company expects to realize significant time and cost savings as a result of suspending its SEC periodic reporting obligations. YouthStream's common stock will continue to be quoted on the Pink Sheets under the symbol YSTM. The Pink Sheets is a centralized quotation service that collects and publishes market maker quotes in real time primarily through its website www.pinksheets.com. The Pink Sheets is the leading provider of pricing and financial information for over-the-counter (OTC) securities markets. YouthStream intends to provide its stockholders with quarterly financial information and annual financial statements as well as updates regarding material events through the Pink Sheets News Service, which posts such information on the Pink Sheets website at www.pinksheets.com under YouthStream's symbol (YSTM). Jess Ravich, the Chairman of YouthStream's Board of Directors, commenting on these developments said, "After careful consideration, the Board decided to take this action because it believes that the costs associated with operating as a registered public company outweigh the benefits, especially considering the increased costs associated with complying with the Sarbanes-Oxley Act of 2002. The Board believes that deregistering will allow management to focus all resources on managing the company rather than reporting, which is in the best interests of the company's stockholders and will enhance long-term stockholder value." In addition, on September 13, 2006, the Board of Directors increased its size from six to seven directors and appointed John Scheel and Donald Reisenberg as Class I directors of the company. Mr. Scheel replaced James Lane, who resigned from the Board effective August 31, 2006, as previously announced, and Mr. Reisenberg was appointed to fill the newly created vacancy. There are no arrangements or understandings between Messrs. Scheel and Reisenberg and any other person pursuant to which they were selected as directors. As previously announced, effective as of August 31, 2006, Mr. Scheel was appointed as the company's Chief Executive Officer and President and Mr. Reisenberg was appointed as the company's Chief Financial Officer and Secretary. Certain statements in this news release are forward-looking statements that involve a number of risks and uncertainties. These forward-looking statements include, but are not limited to, statements and predictions regarding the company's future performance and the potential benefits to be realized from deregistering the company's common stock. Additional forward-looking statements include any other statement that is not historical fact, including any statement which is preceded by the words "will," "plan," "expect," "estimate," "aim," or similar words. Actual events or results may differ materially from the company's expectations. Important factors that could cause actual results to differ materially from those stated or implied by the company's forward-looking statements include the company's history of losses, the uncertainty of tax sharing payments, the impact of changes in demand for the company's products, and other risks detailed from time to time in the company's SEC reports, including its Annual Report on Form 10-K for the fiscal year ended September 30, 2005. These forward-looking statements represent the company's judgment as of the date of this release. The company disclaims any intent or obligation to update these forward-looking statements.

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The above news release has been provided by the above company via the OTC Disclosure and News Service. Issuers of news releases and not OTC Markets Group Inc. are solely responsible for the accuracy of such news releases.