OTCDD

[thepennyking]

GOOD BYE OTC BB - HELLO BBX

Important changes will be coming to the OTC Bulletin Board® (OTCBB), pending expected Securities and Exchange Commission (SEC) approval. In 2003, the OTCBB will be phased out and a new market, the Bulletin Board ExchangeSM (BBXSM), will be launched. Most OTCBB companies, will need to apply to list on the BBX market. The BBX will appeal to many of the same companies that are currently traded on the OTCBB, but will be a higher quality market.
The phasing out of the OTCBB, operated by The Nasdaq Stock Market, Inc., and the creation of the BBX is motivated in part by SEC rules that govern exchanges. It is also part of an ongoing effort to improve capital markets for smaller companies. The BBX will offer a significant improvement over the OTCBB for qualifying small companies by increasing liquidity in the market for their securities, augmenting the opportunity to raise equity capital, and conferring the recognition of trading on a listed market.
The BBX will be a listed marketplace, with qualitative listing standards but with no minimum share price, income, or asset requirements, therefore allowing entrance to a wide array of listings. Companies trading on the BBX will be differentiated from those still trading over-the-counter. All BBX issue symbols will begin with the letters “XB,” and, unlike in the current OTCBB, issuers will be able to choose their own three-letter market symbol to follow the two-letter prefix (e.g., XBAAA).
In addition, the BBX will have an electronic trading system to allow order negotiation and automatic execution. This is a major improvement over the current OTCBB system, where market participants must execute customer orders using the telephone. The BBX’s new system will bring increased speed and reliability to trade executions, as well as improve the overall transparency of the marketplace.
Other advantages to being a BBX-listed company include access to a Corporate Communications Director, who will be responsible for answering questions and providing information on trading activity in individual securities and the marketplace as a whole. This individual attention will be supplemented by newsletters, an informational Web site, and periodic informational seminars and other training opportunities.
In the near future, all OTC BB listed firms will receive a more comprehensive package of materials regarding the BBX and what it means for qualifying companies. The package will include a brochure describing the new market, a listing application, a schedule of listing fees, and detailed application instructions. Furthermore, market participants will be sent an invitation to the BBX informational seminars, which will be held throughout the country beginning in late May or early June 2002.
The BBX website, www.bbxchange.com, went operational in May 2002. The Web site houses application materials, answers to frequently asked questions, and other information.
On Monday, May 6, 2002, The Nasdaq Stock Market, Inc., will host a conference call for market participants to discuss the new Bulletin Board ExchangeSM (BBXSM). The BBX will launch in the first Quarter of 2003 and will eventually take the place of the OTC Bulletin Board® (OTCBB). We invite you to take this opportunity to learn more about the market structure and trading systems of the BBX.
Agenda items include:
Market Overview: Listing Qualifications and Trading Rules
Trading Systems: Order Delivery System and Automated Execution Systems
Technology: BBX Workstation and Network
Next Steps: Issuer Communications and Implementation Schedule
Following the presentation, representatives from Nasdaq Systems Engineering, the Office of the General Counsel, and Listing Qualifications will be available to answer your questions and provide more information. The call-in information is as follows:
Date: May 6, 2002
Time: 4:30 p.m., ET
Call-In Number: [phone]
Leader’s Name: Wes McGrew
Password: BBX
Questions concerning the call, BBX, or OTCBB can be directed to:
Liz Heese, OTCBB/BBX Product Manager at [phone] ([e-mail]), or
Staci Warden, BBX Director at (301) 978- 8260 ([e-mail]).


Penny King Holdings Corporation, a Delaware Investment Holding Company.