The Briscoe Law Firm, PLLC And Cash Powers Taylor, LLP Announce Shareholder Investigation Into The Acquisition Of Alloy Inc. By ZelnickMedia

The Briscoe Law Firm, PLLC, founded by a former state prosecutor and enforcement attorney for the United States Securities and Exchange Commission, and the law firm of Cash Powers Taylor, LLP are investigating potential legal claims against the Board of Directors of Alloy Inc. (“Alloy”) (NASDAQ: ALOY) relating to the proposed acquisition of Alloy by an investor group lead by ZelnickMedia.

The agreement, which was announced on June 24, 2010, involves a cash transaction valued at approximately $126.5 million in which ZelnickMedia will purchase all of the outstanding shares of Alloy stock for $9.80 per share. Under the terms of the announced acquisition, members of Alloy’s senior management will invest in the transaction and remain with the company after the acquisition closes. Even though Alloy’s stock price has increased approximately 50% over the prior year, the announced merger price represents only a 14% premium over Alloy’s closing stock price on June 23, 2010. Further, Alloy’s stock has historically traded as high as $12 per share. The investigation relates to possible breaches of fiduciary duty and other violations of state law by the Board of Directors of Alloy for approving this transaction, whether the consideration to be received by Alloy shareholders is fair, and whether Alloy’s Board of Directors acted in the shareholders’ best interests.

If you currently own shares of Alloy and would like additional information regarding this investigation, or if you have information regarding the allegations involving this transaction, please contact Patrick Powers at Cash Powers Taylor, LLP, toll free [phone], via e-mail at [e-mail], or The Briscoe Law Firm at [phone], or via email at [e-mail]. There is no cost or fee to you.

The Briscoe Law Firm is a full service business litigation, commercial transaction, and public advocacy firm with more than 20 years of experience in complex litigation and transactional matters, governmental relations and strategic communications advocacy.