Medialink Worldwide (MDLK) Reports a Q2 Loss; Approve Deal with Philips Electronics (PHG)

August 14, 2008 8:46 AM EDT

Medialink Worldwide Incorporated (Nasdaq: MDLK) reports a Q2 loss of $1.25 compared to a loss of $0.26 for the same period last year. Revenues for the three months ended June 30, 2008, of $7.0 million decreased by 15.4% from revenues of $8.3 million in the comparable 2007 period.

Medialink also announced that its board of directors has approved an offer from Koninklijke Philips Electronics N.V. (NYSE: PHG) to assume full ownership of Medialink's ownership interest in Teletrax. The transaction, which is subject to standard due diligence procedures, is expected to be consummated by the end of the month. Under the terms of the offer, Philips, which currently owns 24% of the Teletrax entities, would assume Medialink's 76% ownership stake in both Teletrax subsidiaries for a reimbursement of up to approximately $275,000 of certain net operating costs incurred by the Company prior to closing, subject to certain post-closing adjustments. Upon closing of the transaction, Philips would own 100% of the Teletrax entities and Medialink would have no further funding obligations. Under the terms of the offer, Philips would provide the Teletrax® service to Medialink for use by its media communications services clients.

Separately, Medialink announced that the Company's board of directors has approved an offer from World Television Group plc to acquire certain assets of Medialink's media communications services business operated in the United Kingdom.

(NOTE - share currently trade under $1) [SM]

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