Under the NYSE rules, the Company can demonstrate an accelerated cure based on a $1.00 share price on both the last trading day of any calendar month within the cure period and the average share price over the 30 trading days preceding the end of that month.Proxy Statement Proposal Authorizing a Reverse Stock Split Given the Company’s recurring compliance issues over the past several years with the NYSE’s continued listing standards related to the Company’s capitalization, the Company’s most recent definitive proxy statement, filed on September 19, 2011, included a proposal for the Company’s shareholders to vote on authorizing a reverse split of the Company’s common stock. The proposed reverse stock split is intended to increase the company’s stock price in order to make the Company eligible for listing on another national exchange, either the Nasdaq Stock Exchange (“Nasdaq”) or the NYSE Amex Equities exchange (“Amex”), either at the Company’s option, or in the event the Company is ultimately unable to regain compliance with the NYSE’s continued listing standards. Nasdaq requires a minimum share price of $4.00 and Amex requires a minimum share price of $3.00. In the event the reverse stock split is not authorized by shareholders and the Company does not ultimately regain compliance with the NYSE’s continued listing standards within the prescribed time frames as outlined above, and if the NYSE commences proceedings to delist Magnetek, the Company would likely initiate an orderly transition to the over-the-counter (“OTC”) market. Important Information On September 19, 2011, the Company filed with the Securities and Exchange Commission (“SEC”) a definitive proxy statement and accompanying material in connection with its annual meeting of stockholders. Investors and security holders are strongly advised to read the definitive proxy statement as it contains important information about the Company and the proposals to be presented at the annual meeting. Investors and security holders may obtain the proxy statement and any annual, quarterly and current reports and other information the company files with the SEC for free at the SEC’s website at www.sec.gov or at the Company's website at www.magnetek.com in the “Investor Relations” section, or by writing to the attention of the Corporate Secretary of Magnetek, Inc., N49 W13650 Campbell Drive, Menomonee Falls, Wisconsin 53051. The contents of the websites referenced herein are not deemed to be incorporated by reference herein or in the definitive proxy statement. The Company’s directors and executive officers may be deemed to be participants in the solicitation of proxies from the Company’s stockholders for its annual meeting. Information regarding the interests of such persons is included in the Company’s definitive proxy statement filed with the SEC on September 19, 2011, which is available free of charge as described above.
Special Note Regarding Online Availability of Magnetek Releases and FilingsAll Magnetek financial news releases and filings with the SEC are posted to the Magnetek website. Material and financial releases as well as SEC filings are available at www.magnetek.com . Automatic email alerts for these postings are available from the Investor Relations section of the site. Corporate and general releases as well as product information are also available at www.magnetek.com . Special Note Regarding Forward-Looking Statements This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the Company’s expectations and are subject to risks and uncertainties that cannot be predicted or quantified and are beyond the Company’s control, including (1) the potential inability to achieve timely compliance with the NYSE’s continued listing standards, and (2) the potential for the Company to be considered below criteria with respect to other NYSE listing standards. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying these forward-looking statements. These include, but are not limited to, economic conditions in general, business conditions in material handling, elevator, mining, and alternative energy markets, operating conditions, competitive factors such as pricing and technology, risks associated with acquisitions and divestitures, legal proceedings and the risk that the Company’s ultimate costs of doing business exceed present estimates. Other factors that could cause actual results to differ materially from expectations are described in the Company’s reports filed with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934.