KLGG Klegg Electronics Inc (CE)

Klegg Electronics, Inc. (Pink Sheets: KLGE) today announced that a one-for-ten reverse split of its common stock was approved by its Board of Directors. The reverse stock split will become effective before the opening of trading on May 8, 2007. Upon the opening of the market, Klegg�s common stock will begin trading on a reverse-split basis under the trading symbol �KLGG�. As a result of the reverse stock split, every ten shares of Klegg common stock will be combined into one share of Klegg common stock. Fractional shares that result from the reverse split shall be rounded up to the nearest whole share. Klegg�s Transfer Agent, Integrity Stock Transfer will not require shareholders to exchange their certificates. In conjunction with the reverse split all outstanding preferred shares have been converted into common shares bringing the total outstanding shares of common stock to 34,111,482 as of the opening of trading on May 8, 2007. Klegg�s Board and management team are pleased with the decision to complete the reverse stock split. They believe that the reverse stock split should make the company�s stock more attractive to a broader group of investors, and create a capital structure that should sustain the rapid growth that Klegg expects in the near future. �Klegg is currently preparing for rapid sales growth, increased distribution and brand recognition, in addition to our plans to resubmit our registration statement with the SEC, in attempt to move from the Pink Sheets to another exchange� states Dennis Gentles CEO of Klegg Electronics, Inc. �Klegg�s Recapitalization comes at an exciting time in Klegg�s development, and will create a strong foundation to support our future activities� About Klegg Electronics, Inc. Klegg Electronics, Inc. (Pink Sheets: KLGG) is a manufacturer and distributor of high quality consumer electronics. Klegg Electronics has focused on designing a variety of products that work seamlessly together within the home. The corporation is headquartered in Las Vegas, NV. Safe Harbor Statement This press release contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements regarding the following: the reverse stock split and the impact and effects of the reverse stock split of Klegg Electronics are based on management�s expectation at the time they are made. Where possible, the company has tried to identify these forward-looking statements by using words such as �anticipates,� �believes,� �intends,� or similar expressions. These statements are subject to a number of risks, uncertainties and other factors that could cause actual events or results in future periods to differ materially including, without limitation, the following: the failure of the reverse stock split to adjust the market price of Klegg�s common stock; the failure of the reverse stock split to attract new investors; Klegg�s ability to successfully develop and introduce new products; possible delays in the products and technologies developed; the failure of the reverse stock split to contribute to the creation of shareholder value; Klegg�s ability to compete with existing and future competitors; the ability of Klegg�s management team to continue to execute and manage Klegg�s inventory and expenses. All forward-looking statements made in this press release are made as of the date hereof, and Klegg assumes no obligation to update the forward-looking statements included in this news release whether as a result of new information, future events, or otherwise. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements.