WEST PALM BEACH, Fla., June 12, 2012 /PRNewswire/ -- Lloyd I. Miller III is the beneficial owner of more than 480,000 shares of common stock of Qualstar Corporation (NASDAQ: QBAK), representing approximately 4% of the currently outstanding shares. As a shareholder in Qualstar since 2007, Mr. Miller is announcing his intention to vote the Gold Proxy for the removal of the incumbent directors and in favor of the slate nominated by BKF Capital Group, Inc. (OTCQB: BKFG) in connection with the Special Meeting to be held on June 20, 2012.
Mr. Miller voting intention reflects his belief that the incumbent directors have made poor business decisions that have diminished shareholder value. Mr. Miller also disagrees with the recent actions by the incumbent Board of Directors to hire an incumbent director in the role of CEO and to award him a guaranteed salary and severance unrelated to Qualstar's performance.
Mr. Miller supports the position of BKF that Qualstar should declare a dividend of excess cash to shareholders as a significant return of capital, rather than retain substantial balances of cash and marketable securities.
The proposals for the removal of Qualstar's incumbent directors and election of the dissident slate are more fully described in the proxy statement filed with the Securities and Exchange Commission by BKF Capital on June 6, 2012. Mr. Miller is not soliciting votes of other shareholders, but only informing other Qualstar shareholders of his voting intentions and reasons for voting in favor of BKF's proposals.CONTACT: Eric Fangmann, 561-287-5399 or firstname.lastname@example.org SOURCE Lloyd I. Miller III