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EXHIBIT 1
MULTIMEDIA K.I.D. ANNOUNCES FINANCIAL DIFFICULTIES AND VOLUNTARY DELISTING FROM
NASDAQ December 20, 2000 - Multimedia K.I.D., Inc. (Nasdaq: MKID) announced
today that it had run out of operating funds and that it has been unsuccessful
in its attempts to raise additional working capital. All of the assets of the
Company's operating subsidiary in Israel, Multimedia K.I.D. - Intelligence in
Education Ltd., are subject to a lien in favor of its secured bank lender. The
Company will discuss with the bank lender the future of the subsidiary's
operations. These discussions could result in the appointment of a receiver in
Israel for the subsidiary, the sale of the subsidiary's assets and/or the
winding up of the subsidiary's operations. The Company cannot predict whether
there will be any assets available for distribution to its shareholders after
satisfaction of obligations to creditors of the Company and the subsidiary.
As previously reported in the Company's Form 10-QSB for the quarter ended
September 30, 2000, on October 31, 2000, the Company received a letter from the
Nasdaq Listing Qualification Division stating that it had failed to maintain a
minimum bid price of $1.00 for over 30 consecutive days as required for
continued listing on the Nasdaq SmallCap Market. The Company reviewed
alternatives in an attempt to satisfy this listing requirement and concluded
that, considering the Company's current stock price and the inability to secure
additional financing, there were no feasible alternatives that could be
implemented at this time in order to satisfy this listing requirement.
Accordingly, upon request of the Company, effective at the close of trading on
December 21, 2000, the Company will be delisted from the Nasdaq SmallCap Market.
Multimedia K.I.D. also announced today that Pessie Goldenberg has resigned as an
officer and director, and that Yeshayahu (Shaike) Orbach had resigned as an
officer, of the Company and its subsidiary. The Company has no current plans to
replace either person. Mr. Orbach remains a director of the Company.
This release contains certain "forward-looking" statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21 of the
Securities and Exchange Act of 1934, as amended, which are intended to be
covered by the safe harbors created thereby. Such statements should be
considered as subject to risks and uncertainties that exist in Multimedia
K.I.D.'s operations and business environment and could render actual outcomes
and results materially different than predicted.
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