June 26, 2008
Wi-Fi TV Inc. To Reverse Stock, Launch Shareholder Loyalty Program, Deliver Free Personal TV Stations to U.S., China and Europe, and Seek Top Web Site Ranking
Wi-Fi TV Inc. (PINKSHEETS: WTVN) today announced a Shareholder Loyalty Program, a reverse stock split and a new business plan aimed at aggressively growing the number of Wi-Fi TV registered users (www.Wi-FiTV.com) and potentially increasing the valuation and reducing the debt of the company. Specifically, Wi-Fi TV Inc. announced the following:
1) It is reversing its common stock shares by 1000-to-1 with an effective date expected to be June 30, 2008, and with special benefits for current shareholders (see below). Wi-Fi TV had not previously planned to reverse its stock shares in 2008, but decided to take this action based on many factors including:a) the lack of a bid price on its stock, resulting in the stock currently having little value
b) the current economic environment
c) the prospects for business expansion into China
d) a new business plan to increase registered users
e) new Wi-Fi TV Shareholder Loyalty Program to reward existing shareholders
f) potential increased valuation of Wi-Fi TV Inc. as a result of this action
2) Wi-Fi TV Inc. is restructuring its stock concurrent with a new business plan that will allow individuals to have Free Personal Wi-Fi TV Stations. Wi-Fi TV plans to make these stations available in Fall 2008 in the United States, China and Europe. Wi-Fi TV will continue to sell Business Internet TV stations to businesses and organizations at prices beginning at $25,000. Wi-Fi TV Inc. feels the effect of introducing this Free Personal TV Station program will be to position Wi-FiTV.com to potentially become one of the top ranked web sites in the world. Wi-Fi TV Inc. has recently announced it has reached an agreement to introduce Wi-Fi TV into China through a leading China content network provider. China is fast becoming the world's largest Internet market, and many popular U.S. based web sites are banned in China. Wi-Fi TV has taken steps to insure that its site can be delivered to China, specifically it has signed a contract with the same China based content network provider that has worked with MySpaceChina and the largest networking web site in China, to help with distribution in China (there is no affiliation between Wi-Fi TV Inc. and MySpace). The Company has a comprehensive plan to increase its involvement in distribution to China. (There can be no assurance that regulations will not at some point limit Wi-Fi TV's distribution in China, however the Company will attempt to provide a site that meets with China's requirements).
3) Wi-Fi TV is in on-going discussions with its largest creditor about potentially restructuring its corporate convertible debt. In addition, Wi-Fi TV Inc. has publicly stated that it is working toward the goal of ultimately eliminating its convertible debt. This debt is currently estimated to be approximately $7 million and also results in additional derivative liability to the company. Restructuring or eliminating such debt, or a change in the beneficial ownership of such debt, could reduce the Company's need to dilute its stock through new stock issuance required under the convertible debenture notes. Wi-Fi TV Inc. feels that by reversing its stock at this time it has enhanced its possibility to reduce and/or restructure this debt. Wi-Fi TV Inc. is in default under its convertible debt obligations and there can be no assurance that a new agreement pertaining to the convertible debt will be reached.
4) For the record and to clear up any misrepresentation that may occur in misleading postings on the Internet, no officers or directors of Wi-Fi TV Inc. have sold any personally owned shares of Wi-Fi TV Inc. in the past several years.
5) Wi-Fi TV Inc. is implementing a new Wi-Fi TV Shareholder Loyalty Program to reward its longtime shareholders. The program will offer all shareholders of record on June 24, 2008, their choice of any of the following, at the discretion of the investor:
a. a Wi-Fi TV Business Internet TV station valued at $25,000 which they can use for their own business or any personal use. (A Wi-Fi TV Station is good for a period of two years, and includes a dedicated page on Wi-Fi TV whereby the owner can upload, activate, deactivate and select the order of on-demand and "loop" videos, can upload a logo and station description, can upload banner ads, can provide links to other web sites and can place an RSS news feed. A Wi-Fi TV Station owner must conform to all rules and regulations of owning a Wi-Fi TV Station which may change from time to time. Please note that there are tax consequences of receiving a station, and each owner must check with a tax professional and is responsible for any tax consequences. After two years there may be a maintenance fee should an owner wish to continue having their station online, the current fee is $1,000 per year. However, there is no financial obligation by taking part in the two-year free station program).
b. Wi-Fi TV will pay restricted stock for participation in a monthly Wi-Fi TV shareholder survey regarding its web site. (Such stock will be paid out monthly based on participation, and upon acceptance of the terms under which the stock is issued. There are tax consequences in the issuance of this stock to the recipient and the recipient must check with a tax professional and be responsible for any tax consequences).
A form whereby shareholders can participate in this program will be available by emailing [email protected] This statement will also be posted during the month of July on the ticker tape that appears at the top of most pages of the web site www.Wi-FiTV.com. For information on the Wi-Fi TV Shareholder Loyalty Program for all shareholders of record on June 24, 2008, please email [email protected] Full rules and regulations of participation in the program will appear on the form.
Wi-Fi TV, in order to cut down on misleading information regarding the above actions that may be posted on the Internet, will return calls to shareholders of record. Send an email to [email protected] with your name, number of shares currently owned, phone number and a good time to call. Alternatively, questions can also be answered by email. Wi-Fi TV Inc. will only respond to shareholders of record who identify themselves in the best interests of all shareholders.
About Wi-Fi TV:
Wi-Fi TV(TM) is a pioneer of TV on the Internet. Wi-Fi TV Inc. has long touted the coming convergence of TV and the Internet, and provided the first online movie in December 1995.
Wi-Fi TV Inc. provides Social Internet TV(TM), a new generation TV delivery platform that has a geographic sphere out-distancing any traditional cable or over-the-air TV broadcaster.
The Wi-Fi TV web site (www.Wi-FiTV.com) is the only place on the Internet where you can watch hundreds of TV stations and chat with others watching the same program in a live chat box directly under the viewing screen, and get breaking news for each country and category listed, and download a free dialer and make phone calls and host live video parties all on one web site.
The Company was launched in 1995 and has been publicly traded since November 1997. Wi-Fi TV Inc. recently announced that it is adding additional technological features to its web site to position it to be a leader in Internet TV market share, and has introduced a simplified sign-up process. Wi-Fi TV has several exclusive TV stations including www.Wi-FiCars.com, www.Wi-FiGreen.com, www.WatchWi-FiTV.com.
For information on purchasing a Wi-Fi TV Station, send an email to [email protected] or call 949-675-5011.
For press relations, contact Colby Marceau, 949-716-9397, [email protected]
Any statements made in this press release which are not historical facts contain certain forward-looking statements; as such term is defined in the Private Security Litigation Reform Act of 1995, concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement. This press release shall not be deemed a general solicitation.
Contact: Wi-Fi TV Inc. Colby Marceau 949-716-9397 [email protected]
SOURCE: Wi-Fi TV Inc.