Spongetech Delivery Systems, Inc. (fka SPNGQ)

[MARKETEDGE]

The Securities and Exchange Commission (the "SEC") amended Rule 10b-18 (the "Rule") under the Securities Exchange Act of 1934 (the "Exchange Act") to simplify and update the "safe harbor" provisions of the Rule protecting issuers from liability for market manipulation for the repurchase of an issuer's common stock (or an equivalent interest, including a unit of beneficial interest in a trust or limited partnership or a depository share). In addition, in the November 10, 2003 release adopting the final revisions to the Rule, located at http://www.sec.gov/rules/final/33-8335.htm, the SEC promulgated new disclosure requirements that will require issuers to disclose in their quarterly and annual reports all repurchases of their equity securities registered pursuant to Section 12 of the Exchange Act, regardless of whether such repurchases fall within the safe harbor provisions of the Rule or were effected privately or in the market.
The amended Rule is effective as of December 17, 2003, although the disclosure described above must be included in Forms 10-Q and 10-K for periods ending on or after March 15, 2004. http://www.buchananingersoll.com/media/pnc/4/media.1394.pdf