infoUSA Responds to Dolphin.OMAHA Omaha, city, United States Omaha (ō`məhä, –hô), city (1990 pop. 335,795), seat of Douglas co., E Nebr., on the west bank of the Missouri River; inc. 1857. , Neb. -- infoUSA (Nasdaq:IUSA IUSA Indiana University Student Association ) today responded to a press release issued by Dolphin Limited Partnership I, L.P. ("Dolphin") and its principal, Donald T. Netter. Dolphin is a private investment arbitrage fund that was originally bankrolled by entities controlled by Mr. Netter's father and is itself now controlled by Mr. Netter. Dolphin is soliciting proxies so that Mr. Netter and an associate may vote the shares of other infoUSA shareholders for nominees selected by Dolphin in opposition to three of infoUSA's incumbent Directors -- its founder, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and largest shareholder, the chair of its Audit Committee, and the chair of its Nominating and Corporate Governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. Committee. Since Dolphin and Mr. Netter are advancing their candidates to remedy what they label a "lack of oversight by the Board," we think that the fact that Mr. Netter served as an officer and director of a publicly held corporation while it engaged in massive Medicare fraud Medicare fraud Medifraud Medical practice Any unlawful act which results in the inappropriate billing of Medicare for services by a health care provider–eg, physicians, hospitals and affiliated providers. See Medicare. is one of the factors that infoUSA shareholders should carefully consider when choosing between the two slates of Directors. Since the stated agenda of Dolphin and Mr. Netter in engaging in this proxy contest Proxy contest A battle for the control of a firm in which a dissident group seeks, from the firm's other shareholders, the right to vote those shareholders' shares in favor of the dissident group's slate of directors. Also called proxy fights. is to remedy a purported lack of oversight by our Board, then the following information is neither "absurd" nor irrelevant: --The only time that Mr. Netter has held any leadership position at a publicly-held company not affiliated with his family was when he served as a director and officer of Damon Corp.(i) --Mr. Netter and other parties initiated a hostile takeover Hostile Takeover A takeover attempt that is strongly resisted by the target firm. Notes: Hostile takeovers are usually bad news, as the employee moral of the target firm can quickly turn to animosity against the acquiring firm. of Damon Corp. and assumed control of the company in 1989.(ii) --During the period Mr. Netter served as a member of the Board of Directors and held high-level executive positions at Damon Corp., including treasurer,(iii) Damon Corp. engaged in a massive Medicare fraud.(iv) --As a result of a Department of Justice investigation of Medicare fraud, Damon Corp. paid $119 million in criminal fines and civil settlements.(v) --At the time, the $119 million was the largest fine ever for a healthcare fraud case.(vi) --According to newspaper reports, the federal prosecutor involved in the case described the fraud as "corporate greed run amok Amok (ā`mŏk), in the Bible, post-Exilic Jewish family. ."(vii) --Mr. Netter and the other Damon directors failed to disclose to investigators and shareholders evidence of Medicare billing irregularities they discovered during an internal investigation.(viii) --Soon after Mr. Netter left the Damon Board of Directors in 1993, Dolphin Partners was formed. infoUSA urges its shareholders to act now to protect the value of their investments in infoUSA by voting FOR infoUSA's nominees on the WHITE proxy card A proxy card is an easily-acquired or home-made substitute for a collectible card. A proxy is used when a collectible card game player does not own a card, and it would be impractical for such purposes to acquire the card. . infoUSA believes that electing the dissident slate would be disruptive to the implementation of the Company's strategic plan and could impair shareholder value. The infoUSA Board also urges shareholders to vote AGAINST shareholder proposal number 2. Shareholders who have any questions about voting shares Voting Shares Shares that give the stockholder the right to vote on matters of corporate policy making as well as who will compose the members of the board of directors. Notes: Different classes of shares, such as preferred stock, sometimes don't allow for voting rights. or need additional assistance, please contact Mackenzie Partners, the firm assisting infoUSA in the solicitation of proxies, toll free at (800) 322-2885. (i) To infoUSA's knowledge, Mr. Netter is or has been a director of three public companies: Damon Corp., The Aristotle Corporation and Independence Holding Company. Source: Dolphin's Schedule 14A, filed May 19, 2003. The Netter family's affiliations with IHC IHC Immunohistochemistry IHC Intermountain Health Care IHC Inner Hair Cells IHC International Harvester Company IHC Internet Healthcare Coalition IHC Indian Head Cent IHC Interactive Health Communication IHC International Hurricane Center are described above. Geneve Corporation, a privately held company privately held company A firm whose shares are held within a relatively small circle of owners and are not traded publicly. controlled by the Netter family, beneficially owns over 90% of The Aristotle Corporation's common stock. Source: The Aristotle Corporation's Schedule 14A, filed July 27, 2005. (ii) Source: "Damon OKs $223-Million Bid From Investor Group," Los Angeles Times Los Angeles Times Morning daily newspaper. Established in 1881, it was purchased and incorporated in 1884 by Harrison Gray Otis (1837–1917) under The Times-Mirror Co. (the hyphen was later dropped from the name). , January 17, 1989. (iii) Source: Damon Corp. Proxy Statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. filed May 13, 1992. (iv) Source: "Needham Lab Fined $119m for Fraud," The Boston Globe, October 10, 1996. (v) Source: "Needham Lab Fined $119m for Fraud," The Boston Globe, October 10, 1996. (vi) Source: "Romney Says Board Didn't Alert Probers, Declares Firm Took Corrective Action A corrective action is a change implemented to address a weakness identified in a management system. Normally corrective actions are instigated in response to a customer complaint, abnormal levels if internal nonconformity, nonconformities identified during an internal audit or ," The Boston Globe, October 11, 2002. (vii) Source: "Needham Lab Fined $119m for Fraud," The Boston Globe, October 10, 1996 (quoting US Attorney Donald Stern). (viii) Source: "Romney Says Board Didn't Alert Probers, Declares Firm Took Corrective Action," The Boston Globe, October 11, 2002; "Romney Confirms Findings Not Turned Over to the Feds," Deseret News, October 11, 2002. About infoUSA infoUSA (www.infoUSA.com), founded in 1972, is the leading provider of business and consumer information products, database marketing services, data processing services and sales and marketing solutions. Content is the essential ingredient in every marketing program, and infoUSA has the most comprehensive data in the industry, and is the only company to own a proprietary database of 250 million consumers and 14 million businesses under one roof. The infoUSA database powers the directory services of the top Internet traffic-generating sites. Nearly 3 million customers use infoUSA's products and services to find new customers, grow their sales, and for other direct marketing, telemarketing, customer analysis and credit reference purposes. infoUSA headquarters are located at 5711 S. 86th Circle, Omaha, NE 68127 and can be contacted at (402) 593-4500. To know more about Sales Leads, click www.infousa.com. To get a 7-day free trial and 100 free sales leads, click www.salesgenie.com. Statements in this announcement other than historical data and information constitute forward looking statements that involve risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, but are not limited to, recent changes in senior management, the successful integration of recent and future acquisitions, fluctuations in operating results, failure to successfully carry out our Internet strategy or to grow our Internet revenue, effects of leverage, changes in technology and increased competition. More information about potential factors that could affect the company's business and financial results is included in the company's filings with the Securities and Exchange Commission. |
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