NEW YORK, March 15 /PRNewswire/ -- (Nasdaq: INSP) -- Sandell Asset
Management Corp. ("Sandell") announced that it has notified InfoSpace, Inc.
(the "Company") of its intention to nominate three highly qualified
independent candidates for election to the board of directors at the 2007
annual meeting of stockholders. This notification follows Sandell's letter
to the company earlier this week expressing concern over the lack of
capital return to shareholders from InfoSpace's large cash balance and
complacency over cost controls. Specifically, Sandell asked the Company to
immediately return $300 million of cash in the form of a $200 million Dutch
tender offer at a premium to the current share price and a $100 million
special dividend. Sandell also asked the Company to cut an additional $15
million of costs to improve the profitability of its remaining operations
after the restructuring of its mobile division. Further, Sandell has
suggested that the Company engage a financial advisor to evaluate the
potential sale of the Company in whole or in part. Sandell and others
currently intend to conduct a proxy solicitation seeking to elect this
minority slate to the board.
"We made the decision to nominate an alternative slate of directors
because we do not feel the necessary steps are being taken by the current
board and management to maximize value at InfoSpace. We feel that
shareholder representation on the board is warranted to ensure that all
alternatives are considered and a course of action is taken to close the
gap between the current share price and its inherent value," said Thomas E.
Sandell, founder, principal and Chief Executive Officer of Sandell Asset
Management Corp. "We hope to work constructively with InfoSpace's
management and board to improve the value for all shareholders."
About Sandell Asset Management Corp.
Sandell Asset Management Corp. is a multi-billion dollar global
investment management firm, founded by Thomas E. Sandell, that focuses on
global corporate events and restructurings throughout North America,
Continental Europe, the United Kingdom, Latin America and the Asia-Pacific
theatres. Sandell frequently will take an "active involvement" in
facilitating financial or organization improvements accruing to the benefit
SOURCE Sandell Asset Management Corp.