Alex Meruelo Responds to Expected Completion of Digital Generation's Strategic
Confirms Intention to Nominate Directors, Submit Shareholder Proposals, and
Conduct Proxy Solicitation
LOS ANGELES, Dec. 6, 2012 (GLOBE NEWSWIRE) -- Alex Meruelo today delivered the
following letter to the board of directors of Digital Generation, Inc.
"I acknowledge and appreciate the press release issued by Digital Generation
on November 30, 2012 in response to my request for greater transparency
regarding the Company's existing strategic alternatives process.
As Digital Generation's largest shareholder, I have supported the existing
process and welcomed a timely sale of the Company at a fair price to the
Company's Executive Chairman or any other buyer. I continue to believe that
the Company has tremendous value and have urged the board to take action to
capitalize on the current level of interest in the Company and diligently
consider and pursue the best available opportunities. Although I have been
disappointed by the delays and lack of communication on the part of the
Company, I have continued to support the process and attempt to work with the
Company to preserve, create, and realize value for shareholders.
I am committed to monitoring my investment in the Company on a continuing
basis and otherwise taking action as I deem appropriate in connection with my
interest in the Company.
I expect the Company to be accountable to its shareholders as the owners of
the Company and intend to hold the board and management directly responsible
for maximizing value for all shareholders. I also expect the Company to
demonstrate a conscious regard for shareholders in connection with the
existing process, including by providing more timely, regular, and meaningful
updates, as appropriate, until the process is completed.
If the Company fails to complete the process in a timely manner or otherwise
fails to maximize value for all shareholders, I plan to make director
nominations and submit shareholder proposals and conduct a proxy solicitation
contest, as appropriate for the protection of shareholders."
About the Meruelo Parties
Meruelo Investment Partners LLC acts as an investment adviser or manager to
other persons and accounts and may be deemed to beneficially own securities
owned or held by or for the account or benefit of such persons and accounts.
The principal business of Meruelo Investment Partners is serving as an
investment adviser or manager to other persons and accounts.
Alex Meruelo is the Chief Executive Officer of Meruelo Investment Partners and
may be deemed to control, and beneficially own securities owned or held by,
Meruelo Investment Partners. The present principal occupation of Mr. Meruelo
is serving as the principal of the Meruelo Group, which includes affiliated
companies with significant interests in real estate management and
development, utility construction, hospitality, food services (manufacturing,
distribution and restaurant operations), and television broadcast media.
About the Proxy Solicitation
We intend to file a proxy statement and other soliciting materials with the
SEC and use the materials to solicit proxies from shareholders of Digital
Generation in connection with a meeting of shareholders of Digital
Generation.Security holders are advised to read the proxy statement and other
materials (when and if they become available) because they will contain
important information, including with respect to the proxy solicitation and
the participants in the solicitation.Security holders may obtain the proxy
statement and other material (when and if they become available) for free at
the SEC's web site at http://www.sec.gov or from the participants using the
contact information provided herein or in the materials.
We intend to file this press release with the SEC on December 6, 2012 as
soliciting material on Schedule 14A and include information in Exhibit 1 to
the Schedule 14A with respect to the identity of the participants in the
solicitation and a description of their direct or indirect interests, by
security holdings or otherwise.Security holders may obtain the information
for free at http://www.sec.gov or by contacting us using the contact
information provided herein or in the materials.
This press release contains forward-looking statements that are subject to
factors that could cause actual results to differ materially from expected
results, including assumptions that may not be correct or accurate due to
risks related to Digital Generation and other parties, circumstances, and
conditions we cannot control or predict, the inherent uncertainty of future
events, and other factors that may cause us to change our plans.
CONTACT: Xavier A. Gutierrez
President and Chief Investment Officer
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