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Signalife Announces Reverse Stock Split, Preferred Stock Dividend and $5 Million Investment
Date:9/10/2008

common stock. It is believed that a significant reduction in the company's public float will reduce or minimize the ability of illegal short sellers to manipulate the market price of the common stock. To address this situation, Signalife has engaged lawyers nationwide in order to assure that every naked short sale (4 days of non-delivery after sale) will be answered instantaneously by a lawsuit in the jurisdiction relevant to the brokerage house. If short sellers wish to get sued, and subject themselves to discovery, every four days, we have lawyers who will oblige them on contingency bases and will move for injunctive relief immediately. The only exceptions will be those persons who unilaterally send a letter to the company that outlines who they are, that they are making a market in the securities, and that they are not conducting any long-term short selling more than 13 days (the SHO threshold list). These must be in writing in order to avoid being sued. Because there will be less than 100,000 shares outstanding after the reverse split, it will be extremely easy for the company's lawyers to track the naked short sales and the company has engaged several service providers who access SEC information to confirm such facts." Signalife reserves the right to not sue anybody who it reasonably believes -- in its own discretion -- is innocent of "mens rea" and Signalife reasonably believes acted without "scienter."

Signalife further announced that Signalife's principal shareholder, ARC Finance Group, LLC, and certain of the company's directors, have each entered into a private placement with the company pursuant to which they agreed to invest a total of $5 million on the first business day after the full implementation of the reverse stock split with the Delaware Secretary of State. Under the terms of the private placement, the investors will purchase a new series of convertible preferred stock, to be designated series 'B', and will be entitled to a number of such
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SOURCE Signalife, Inc.
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