Significant Unaffiliated Stockholder Delivers Follow-Up Letter to CopyTele, Inc. Board of Directors

NEW YORK, May 24 /PRNewswire/ -- John D. Reynolds, a significant unaffiliated stockholder of CopyTele, Inc. (OTC Bulletin Board: COPY), announced today that he has sent a follow-up letter dated May 24, 2010 to CopyTele's Board of Directors.  

The full text of the letter follows:

Dear Members of the Board of Directors:

It has now been more than a week since my letter to you of May 13, 2010, which only came after months of attempts to discuss with you privately the problems at CopyTele, Inc. (the "Company").  As you know, I also delivered on that same day a demand pursuant to Section 220 of the Delaware General Corporation Law (the "DGCL") to inspect certain books, records and documents of the Company, including a copy of the list of the Company's stockholders (the "Demand").  

To date, the only response from the Company has been a letter from the Company's outside counsel declining to provide the information and materials requested in the Demand.  The Company's refusal to satisfy the Demand is just another example of the Company placing its own interests ahead of those of its stockholders.  It is even more troubling that the Company is spending the stockholders' money in its efforts to prevent a stockholder from exercising his legitimate rights under Delaware law.  The Company's response appears to serve no purpose other than to create unnecessary delays and expenses for all parties involved.  I urge you to make the materials requested under the Demand available without further delay.  I do not think the Delaware Chancery Courts would take lightly any steps by the Company to interfere with a stockholder's right to inspect the books and records of the Company.  

As you are also aware, in my May 13 letter, I requested to commence immediate discussions with you in furtherance of the appointment of three independent stockholder representatives to the Board.  Since I have not heard from you, I can only be left to conclude that you have no interest in communicating with me in this regard.  That the Board has been totally unwilling to have an open and frank dialogue with a significant stockholder whose only goal is to improve the composition of the Board and to enhance stockholder value is as perplexing as it is disappointing.  Your mismanagement and behavior is exceptionally unprofessional and quite damaging to the Company and its stockholders.

Nevertheless, I am reaching out to you one final time in hopes that you are now ready to engage in meaningful discussions regarding my serious concerns with the Company and the reconfiguration of the Board to include new independent directors.  If the Board continues to rebuff me, I will not hesitate to take all necessary action to protect my investment, including seeking to add three independent directors to the Board.

It remains my hope that the Board will promptly comply with both the Demand and my request set forth above and ultimately do the right thing for CopyTele and its stockholders.

Sincerely,

John D. Reynolds

CONTACT: JOHN D. REYNOLDS / [email protected]

SOURCE John D. Reynolds