NEW YORK, July 1 /PRNewswire-FirstCall/ -- Medialink Worldwide Incorporated (NASDAQ:MDLK), a leading provider of diversified media services for professional communicators and marketers, today announced that it extinguished its outstanding subordinated debentures. The Company entered into Settlement Agreements with the holders of its variable rate convertible debentures under which the Company paid $1,590,000 to fully satisfy the outstanding debentures with a face value of $2,650,000. Upon payment the Company was released from all future obligations and the security interest held by the debenture holders was terminated. The debenture holders continue to hold warrants to purchase a total of 536,729 shares of the Company's common stock, of which 524,637 warrants have a purchase price of $0.50 per share and 12,092 warrants have a purchase price of $3.99 per share. Such warrants expire on November 9, 2009. "Acknowledging the rough economic environment and the financial condition of the Company, the debenture holders were willing to take a substantial discount on the extinguishment of their debt," said Kenneth Torosian, Chief Financial Officer of Medialink. "Extinguishing the debentures allows us to more vigorously pursue various strategic alternatives, but also puts additional time pressure on us achieving success in such efforts as the repayment required use of a significant portion of our cash balance." About Medialink: Medialink is a global leader in providing unique news and marketing media strategies and solutions that enable corporations and organizations to inform and educate their target audiences with maximum impact on television, radio and the Internet. The Company offers creative services and multimedia distribution programs including video and audio news and short-form programming. Based in New York, Medialink has offices in major cities throughout the United States. For additional investor and financial information, please visit the Investor Relations section of the Company's Web site (http://www.medialink.com/). With the exception of the historical information contained in the release, the matters described herein contain certain "forward-looking statements" that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this release are not promises or guarantees and are subject to risks and uncertainties that could cause our actual results to differ materially from those anticipated. These statements are based on management's current expectations and are naturally subject to uncertainty and changes in circumstances. We caution you not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Actual results may vary materially from those expressed or implied by the statements herein. Such statements may relate, among other things, to our ability to respond to economic changes and improve operational efficiency, the benefits of our products to be realized by our customers, or our plans, objectives, and expected financial and operating results. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances or using words such as: will, believe, anticipate, expect, could, may, estimate, project, plan, predict, intend or similar expressions that involve risk or uncertainty. These risks and uncertainties include, among other things, our recent history of losses; our ability to achieve profitability; our ability to obtain financing or other capital; our ability to remain a going concern and remain in operation; the financial stability of our clients; potential regulatory action; worldwide economic weakness; geopolitical conditions and continued threats of terrorism; effectiveness of our cost reduction programs; the receptiveness of the media to our services; changes in our marketplace that could limit or reduce the perceived value of our services to our clients; our ability to develop new services and market acceptance of such services, such as Mediaseed(R); the volume and importance of breaking news, which can have the effect of crowding out the content we produce and deliver to broadcast outlets on behalf of our clients; our ability to develop new products and services that keep pace with technology; our ability to develop and maintain successful relationships with critical vendors; future acquisitions or divestitures, which may adversely affect our operations and financial results; the absence of long term contracts with customers and vendors; and increased competition, which may have an adverse effect on pricing, revenues, gross margins and our customer base. More detailed information about these risk factors is set forth in filings by Medialink Worldwide Incorporated with the Securities and Exchange Commission, including the Company's registration statement, most recent quarterly report on Form 10-Q, most recent annual report on Form 10-K and other publicly available information regarding the Company. Medialink Worldwide Incorporated is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. DATASOURCE: Medialink Worldwide Incorporated CONTACT: Kenneth Torosian, Chief Financial Officer of Medialink Worldwide Incorporated, +1-212-682-8300, , or Jordan M. Darrow, Investor Relations of Darrow Associates, Inc., +1-631-367-1866, Web Site: http://www.medialink.com/

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