Wednesday, February 18, 2009

Soapstone Engages Morgan Stanley to Explore Options

Soapstone Networks has engaged Morgan Stanley to assist in exploring strategic alternatives for enhancing shareholder value, including but not limited to, continued execution of the company's business plan, the payment of a cash dividend to the company's shareholders, a repurchase by the company of shares of its capital stock, the sale or spin off of company assets, partnering or other collaboration agreements, a merger, sale or liquidation of, or acquisition by, the company or other strategic transaction. No timetable has been set for taking any strategic action.

"Like many companies in this macro-economic environment, we have heard from certain of our shareholders that, for their particular interests, a near-term cash return from the Company is desirable," said Bill Leighton, the Company's CEO. "With the help of our outside advisors, we will carefully consider this expressed interest in a cash return, within the process of evaluating a range of alternatives, understanding that our goal is, as always, to provide enhanced value to all of our shareholders."