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MELVILLE,
N.Y., August 15, 2003 -- Earlier this year, Andrea Electronics
Corporation (Amex: AND) received notice from the American
Stock Exchange ("AMEX" or "the Exchange")
indicating that the Company is below certain of the Exchange's
continued listing standards. The Company was afforded the
opportunity to submit a plan of compliance to the Exchange
and on June 25, 2003 presented its plan to the Exchange. On
August 13, 2003 the Exchange notified Andrea that it has accepted
the Company's plan of compliance and granted an extension
of time to November 23, 2004 to regain compliance with the
continued listing standards. Andrea will be subject to periodic
review by the Exchange staff during the extension period.
Failure to make progress consistent with the plan or to regain
compliance with the continued listing standards by the end
of the extension period could result in the Company being
delisted from the American Stock Exchange.
In its original notice to the Company, AMEX cited the following
non-compliance items: shareholders' equity of less than $2,000,000
and losses from continuing operations and/or net losses in
two of its three most recent fiscal years; shareholders' equity
of less than $4,000,000 and losses from continuing operations
and/or net losses in three out of its four most recent fiscal
years; and shareholders' equity of less than $6,000,000 and
losses from continuing operations and/or net losses in its
five most recent fiscal years, as set forth in Section 1003(a)(i)-(iii),
respectively, of the AMEX Company Guide.
Corisa
L. Guiffre, Andrea's Vice President and Chief Financial Officer
stated, "Notwithstanding the fact that redeemable convertible
preferred stock issuances are presented outside of shareholders'
equity on our condensed consolidated balance sheet, the plan
approved by AMEX includes a provision for a substantial capital
infusion as well as an operational repositioning within the
extension period. On July 2, 2003, we announced that Andrea
had retained FTI Merger & Acquisition Advisors, LLC to
explore potential strategic alternatives and assist in capital
raising efforts. The next step is to execute the operational
piece of the plan."
About
Andrea Electronics
Andrea
Electronics Corporation designs, develops and manufactures
audio technologies and equipment for enhancing applications
that require high performance and high quality voice input.
The Company's patented Digital Super Directional Array (DSDA),
patented PureAudio, patented EchoStop and patent-pending Directional
Finding and Tracking Array (DFTA) far-field microphone technologies
enhance a wide range of audio products to eliminate background
noise and ensure the optimum performance of voice applications.
Applications for the Company's technologies include: speech
recognition programs, Internet telephony, video/audio conferencing,
automobile PCs, home automation systems, hand-held devices
and multiplayer online games, among others. Visit Andrea Electronics'
website at www.AndreaElectronics.com
or call 1-800-707-5779.
This press
release may contain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of
1995. The words "anticipates," "believes," "estimates," "expects,"
"intends," "plans," "seeks," variations of such words, and
similar expressions are intended to identify forward-looking
statements. These statements are not guarantees of future
performance and involve matters that are subject to certain
risks, uncertainties and assumptions that are difficult to
predict, including economic, competitive, governmental, technological
and other factors, that may affect the business and prospects
of Andrea Electronics Corporation (the "Company"). The Company
cautions investors about the following significant factors,
which, among others, have in some cases affected the Company's
actual results and are in the future likely to affect the
Company's actual results and could cause them to differ materially
from those expressed in any forward- looking statements: the
rate at which Andrea Anti-Noise, DSDA, DFTA and other Andrea
technologies are accepted in the marketplace; the competitiveness
of Andrea Anti-Noise, DSDA, DFTA and other Andrea products
in terms of technical specifications, quality, price, reliability
and service; the sufficiency of the Company's funds for research
and development, marketing and general and administrative
expenses; infringement and other disputes relating to patents
and other intellectual property rights held or licensed by
the Company or third parties; the Company's continuing ability
to enter and maintain collaborative relationships with other
manufacturers, software authoring and publishing companies,
and distributors; the emergence of new competitors in the
marketplace; the Company's ability to compete successfully
against established competitors with greater resources; the
uncertainty of future governmental regulation; the Company's
ability to obtain additional funds; and general economic conditions.
No assurance can be given that the Company will achieve any
material sales or profits from the products introduced in
this release. These and other similar factors are discussed
under the heading "Cautionary Statement Regarding Forward-looking
statements" included in the Management's Discussion and Analysis
of Financial Condition and Results of Operations in the Company's
Annual Report on Form 10-K and in the Company's Annual Report
to shareholders, and in documents subsequently filed by the
Company with the Securities and Exchange Commission.
AT ANDREA ELECTRONICS CORP.
Corisa L. Guiffre
Vice President, Chief Financial Officer
1-800-447-7787
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