RR Media Board Adopts New Dividend Policy And Authorizes $5M Share Repurchase Program

RR Media

, a leading provider of global digital media services to the broadcast industry, today announced that RR Media's Board of Directors has adopted a new dividend policy and authorized a repurchase of up to $5 million of the Company's shares. The Board of Directors has adopted a new dividend policy pursuant to which, subject to applicable law requirements and the discretion of the Board of Directors from time to time, it shall distribute a fixed dividend to the shareholders at the end of each calendar quarter equal to $0.07 per share. "The Board believes that by adopting a dividend policy which provides for a consistent and meaningful quarterly dividend, investors will be able to ascertain an expected ongoing dividend yield, making our ordinary shares more attractive to value-oriented investors," commented Avi Cohen, the Company's Chief Executive Officer. In addition, the Board authorized a share repurchase program of up to $5 million of ordinary shares. Share purchases will take place in open market transactions or in privately negotiated transactions and may be made from time to time depending on market conditions, share price, trading volume and other factors. Such purchases will be made in accordance with all applicable securities laws and regulations. For all or a portion of the authorized repurchase amount, the Company may enter into a plan that is compliant with Rule 10b5-1 of the United States Securities Exchange Act of 1934 that is designed to facilitate these purchases. The repurchase program does not require the Company to acquire a specific number of shares, and may be suspended from time to time or discontinued. The share repurchases will be funded from available working capital. "The Board believes this repurchase program represents a good use of the Company's capital and represents the board's confidence in the Company's long term prospects, based on the steps we are adopting in order to transform the Company into a leader in the digital media services and distribution space," continued Mr. Cohen. "In the last year, we have significantly expanded our capabilities, increasing our presence in the mobile ecosystem and empowering our offerings for processing content for online distribution. We have also expanded our geographic reach, positioning talented personnel in key markets around the world." The new dividend policy and the share repurchase program will not impact the Company's stated strategic plan in terms of acquisitions or investments for growth. The board will continue to evaluate the dividend policy and repurchase program from time to time.