NOVT Corporation's Board of Directors Terminates Shareholder Rights Plan
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LOS GATOS, Calif., Oct. 8 NOVT Corporation(Pink Sheets: NOVT.PK) ("the Company") today announced that its Board ofDirectors voted to terminate the Company's current shareholder rights plan.The Board of Directors determined the plan was no longer necessary due to theCompany's reincorporation in Delaware and adoption of a new charter, whichcontains a provision protecting the Company's Net Operating Losscarryforwards. This new charter provision restricts the transfer of stock toa transferee (or a group in which the transferee is a member) if the transferwould either (i) increase the transferee's beneficial ownership of the Companyto 4.75 percent or above or (ii) increase the transferee's beneficialownership of the Company from 4.75 percent or above to a greater ownershipinterest percentage.
The rights plan will be terminated by changing its 2009 expiration date toOctober 29, 2007, while the Board retains the right to adopt a new plan at afuture date in the event of changed circumstances.
