Pixelplus Announces Plans to Terminate Its American Depositary Receipts Program

SEOUL, South Korea, Dec. 6, 2011 /PRNewswire/ — Pixelplus Co., Ltd. (PXPLY: PK), a fabless semiconductor company in South Korea that designs, develops, and markets CMOS image sensors for various consumer electronics applications, today announced that the Company will terminate its American Depositary Receipts (“ADR”) Program. 

As a first step for that purpose, the Company will provide written notice to its Depositary to terminate the Deposit Agreement with respect to its existing ADRs, with such termination to take effect on February 29, 2012.   The Depositary will contact ADR holders in due course with additional information on this process, including those necessary and proper actions to be executed.  

The Company’s ADRs will continue to trade over the counter (“OTC”) in the United States until the date of termination of the Deposit Agreement on February 29, 2012.

“We are inclined to terminate the Deposit Agreement and ADR Program as we do not envision the ADR Program as positively enabling, effectuating, or contributing to our short-term and long-term business goals and strategies now and into the foreseeable future,” said Dr. S.K. Lee, CEO and Founder of Pixelplus.  “In addition, the Company’s financial costs and expenses incurred in connection with sustaining the ADR Program poses an undue and unnecessary economic burden which we would like to eliminate in moving forward.  For these reasons, we have no choice but to terminate the Deposit Agreement and ADR Program in a timely and effective manner.  Although this is not something we would have chosen to do, we feel compelled and obligated under the current circumstances to make this decision in the best interests of the Company.”

Pixelplus expects to become a part of the “Free Board” in South Korea in due course, which is South Korea‘s equivalent of the OTC in the United States, so that ADR holders who convert their ADRs into ordinary shares can trade those converted ordinary shares in the Korean market.  Once the Company becomes a part of the Free Board, Pixelplus will post that development on its website (http://www.pixelplus.com[1]). 

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