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ModusLink Comments On Preliminary Proxy Announcement By Peerless Systems Corporation

Stocks in this article: MLNK PRLS

ModusLink Global Solutions (TM), Inc. (NASDAQ: MLNK), today commented on the announcement by Peerless Systems Corporation (NASDAQ: PRLS) (“Peerless”) regarding Peerless’ preliminary proxy statement.

ModusLink issued the following statement:

          ModusLink recommends that stockholders defer making any determination with respect to the announcement by Peerless, a ModusLink stockholder for less than three months, until they have been advised of the Board’s evaluation of the Peerless nominees and proposals. Stockholders should know that Peerless, which has recently sold approximately nine percent of its ModusLink stock holdings, acknowledges in its preliminary proxy statement that its nominees “do not have specific plans as of this date with respect to enhancing the value of the Company.”
 
ModusLink values the opinions of all stockholders, has a track record of working with stockholders and has been reasonable and open to a resolution in its discussions with Peerless. Peerless has instead chosen to engage the Company in a potentially expensive and distracting proxy contest. Furthermore, Peerless has also denied ModusLink’s request to have the Peerless nominees be interviewed by the Board’s Nominating and Corporate Governance Committee, which is an essential step to ensure that any incoming members of the Board have the necessary skills, background and experience to create value for all stockholders.
 
ModusLink’s Board and management team have worked diligently to position the Company for success while taking appropriate actions to respond to economic and market factors affecting our clients and our industry. Our driving objective has been to transform ModusLink into a leader in global supply chain management services by pursuing a strategy of strengthening our core business and adding new capabilities that provide ModusLink with a durable competitive advantage. As a result of these efforts, ModusLink has established a unique value proposition and the Company now plays a vital role in the advancement of our clients’ business.
 
Given the Company’s strong liquidity and balance sheet, with more than $110 million in cash and no debt at the end of fiscal 2011, we believe we are well positioned to continue executing our investing and cost reduction plan to put ModusLink on a trajectory of sustained growth in revenue and profits.

ModusLink noted that its eight member Board of Directors includes seven independent directors.

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