Mitek Systems common stock demoted to OTC Bulletin Board


Mitek Systems, Inc. (NASDAQ:MITK) today announced receipt of a notification from Nasdaq that following a hearing before a Nasdaq Listing Qualifications Panel on April 22, 2004, the common stock of Mitek will be delisted from the Nasdaq SmallCap Market effective with the open of business on Monday, May 24, 2004. The Nasdaq notice stated that the Panel's determination was based on Mitek's failure to satisfy the $2.5 million shareholders' equity requirement as of December 31, 2003.

Nasdaq informed Mitek that its securities will be immediately eligible for quotation on the OTC Bulletin Board effective with the open of business on Monday, May 24, 2004. The OTC Bulletin Board symbol assigned to Mitek is MITK. No application is required to be filed for inclusion on the OTC Bulletin Board, provided a market maker enters a quote on the first day of eligibility. Nasdaq has included the delisting announcement on the "Daily List" which is available on and to subscribers of Shareholders will be able to obtain quotes for Mitek's common stock at or through their broker.

Although Mitek plans to appeal the decision made by the Nasdaq Listing Qualifications Panel, the company's common stock will trade on the OTC Bulletin Board pending the outcome of the appeal. No assurance can be made that the appeal will be successful.

"While we are disappointed with the outcome of the hearing, we believe Nasdaq's decision has no bearing on our ability to move forward with our business plan," said James DeBello, President and Chief Executive Officer of Mitek Systems, Inc. "Our recent non-binding letter of intent with the Laurus Funds, as mentioned in the May 18, 2004 press release, should help provide us with the access to capital we need to expand various sales and marketing initiatives at the Company. We remain upbeat about our future as we continue to develop new, value added products for our customers."

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