WASHINGTON–(BUSINESS WIRE)–May 15, 2008–Liquidity Services,
Inc. (LSI), a leading online auction marketplace for wholesale,
surplus and salvage assets, today announced that LSI and the Defense
Reutilization and Marketing Service (the “DRMS”) of the U.S.
Department of Defense entered into a Supplemental Agreement (the
“Amendment”) relating to the Commercial Venture II (CV-II) (Surplus
Contract) on May 13, 2008. Under the Amendment, the Surplus Contract’s
performance period has been extended by 180 days to December 19, 2008
subject to a mutual termination for convenience clause. During this
extension period, the DOD will continue to use this contract as the
primary channel for the disposition of usable surplus property that is
approved for sale to the public. The terms of the contract extension
also increase LSI’s profit sharing percentage to 39.5% for property
received during the extension period.
The principal terms of the modification to the Surplus Contract
are described in an 8-K filed today with the SEC. All other principal
terms of the original contract remain in effect.
LSI does not believe the Surplus Contract modification will have a
material effect on its fiscal year 2008 results.
About Liquidity Services, Inc. (LQDT)
Liquidity Services, Inc. (NASDAQ:LQDT) and its subsidiaries enable
corporations and government agencies to market and sell surplus assets
and wholesale goods quickly and conveniently using online auction
marketplaces and value-added services. The company is based in
Washington, D.C. and has 670 employees. Additional information can be
found at: www.liquidityservicesinc.com.
Forward-Looking Statements
This document contains forward-looking statements made pursuant to
the Private Securities Litigation Reform Act of 1995, including,
without limitation, statements regarding the potential benefits and
impact on our fiscal 2008 operating results of the amendment to our
Surplus Contract. The outcome of the events described in these
forward-looking statements is subject to known and unknown risks,
uncertainties and other factors that may cause our actual results to
differ materially from any future results expressed or implied by
these forward-looking statements. You can identify forward-looking
statements by terminology such as “expects,” or the negative of these
terms or other comparable terminology. We cannot guarantee future
results, levels of activity, performance or achievements. There are a
number of risks and uncertainties that could cause our actual results
to differ materially from the forward-looking statements contained in
this document. Important factors that could cause our actual results
to differ materially from those expressed as forward looking
statements include our dependence on our contracts with the DOD for a
significant portion of our revenue and our ability to integrate the
Geneva Group into our existing operations, continue the Geneva Group’s
seller relationships and buyer network and realize expected benefits
of the acquisition, as well as the factors set forth in the Company’s
Annual Report on Form 10-K for the year ended September 30, 2007, and
our Quarterly Report on Form 10-Q for the quarter ended March 31,
2008, including, but not limited to, those set forth in Part I, Item
IA (Risk Factors) as well as our other filings from time to time with
the Securities and Exchange Commission. There may be other factors of
which we are currently unaware that may cause our actual results to
differ materially from the forward-looking statements. All
forward-looking statements apply only as of the date of this document
and are expressly qualified in their entirety by the cautionary
statements included in this document. Except as may be required by
law, we undertake no obligation to publicly update or revise any
forward-looking statement occurring after the date of this document.
CONTACT: Liquidity Services, Inc. (LSI)
Media and Investor Contact:
Julie Davis, 202-558-6234
[email protected]
SOURCE: Liquidity Services, Inc. (LSI)
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