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PRESS RELEASES


October  24, 2005
News Release
For Immediate Release

AMEX: TUX
CUSIP 901144105

 

TUXIS CORPORATION ADOPTS SHAREHOLDER RIGHTS PLAN

New York October 24, 2005 - Tuxis Corporation (AMEX: TUX) today announced that its Board of Directors has adopted a shareholder rights plan. The rights plan is designed to ensure that all Tuxis shareholders receive fair and equal treatment in the event of an unsolicited attempt to acquire Tuxis. The adoption of the rights plan is intended to deter partial and "two step" tender offers or other coercive takeover tactics, and to prevent an acquirer from gaining control of Tuxis without offering a fair price to all of Tuxis' shareholders. The rights plan was not adopted in response to any known offers for Tuxis and is similar to shareholder rights plans adopted by many other companies.  

To implement the rights plan, the Board of Directors declared a dividend distribution of one right for each outstanding share of Tuxis common stock, par value $.01 per share, to holders of record of the shares of common stock at the close of business on November 3, 2005. Each right entitles the registered holder to purchase from Tuxis one one-thousandth of a share of preferred stock, par value $.01 per share. The rights will be distributed as a non-taxable dividend and will expire on November 3, 2015. The rights will be evidenced by the underlying Tuxis common stock, and no separate preferred stock purchase rights certificates will presently be distributed. The rights to acquire preferred stock are not immediately exercisable and will become exercisable only if a person or group acquires or commences a tender offer for 25% or more of Tuxis' common stock.  

If a person or group acquires or commences a tender offer for 25% or more of Tuxis' common stock, each holder of a right, except the acquirer, will be entitled, subject to Tuxis' right to redeem or exchange the right, to exercise, at an exercise price of $40.50, the right for one one-thousandth of a share of Tuxis' newly-created Series A Participating Preferred Stock, or the number of shares of Tuxis common stock equal to the holder's number of rights multiplied by the exercise price and divided by 50% of the market price of Tuxis' common stock on the date of the occurrence of such an event. Tuxis' Board of Directors may terminate the rights plan at any time or redeem the rights, for $0.01 per right, at any time before a person acquires 25% or more of Tuxis' common stock. 

For a summary of the rights plan, visit the company's website at http://www.tuxis.com. A copy of the rights agreement will be filed with the Securities and Exchange Commission as an exhibit to a current report on Form 8-K.

More information about Tuxis may be found at its web site http://www.tuxis.com.

This press release may contain forward-looking statements and similar expressions that reflect Tuxis' current expectations about its future performance, and are subject to risks, uncertainties and other factors that could cause Tuxis' actual performance to differ materially from those expressed in, or implied by, these forward-looking statements.  


 

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Principal Office:   3814 Route 44, Millbrook, NY 12545   |  Tel: (845) 677-2700   |  Fax: (845) 677-2800
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Tuxis Self Storage,  where "Security is Our First Priority"

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