Hipcricket to Seek Stockholder Approval of Reverse Stock Split at Annual Meeting

BELLEVUE, WA--(Marketwired - Aug 4, 2014) -  Hipcricket®, Inc. (OTCBB: HIPP) (OTCQB: HIPP), a leader in mobile engagement and analytics, announced that it will seek stockholder approval to authorize an amendment to the Company's certificate of incorporation to effect a reverse stock split of the Company's common stock. The proposal would be voted on at the Company's annual meeting of stockholders to be held on September 18, 2014. The date for determining the stockholders of record entitled to received notice of, and to vote at, the annual meeting is August 1, 2014.

A definitive proxy statement containing important information regarding the proposed reverse stock split will be mailed to stockholders of record commencing on or about August 4, 2014.

The Company is seeking stockholder approval for the authorization to effect a reverse stock split in order to improve the marketability and liquidity of the Company's common stock and generate more investment interest in the Company. Additionally, a reverse stock split would increase the number of authorized but unissued common shares available for capital raising and other corporate purposes.

The Company's Board of Directors is asking stockholders to vote on and approve a proposal to effect a reverse split of the Company's common stock in a range of one for twenty to one for forty shares of common stock. The stockholders are being asked to grant authority to the Board of Directors to determine, in its discretion, the actual ratio of the reverse stock split and when such reverse stock split should be implemented. If a reverse stock split is not effected by February 28, 2015, the authority granted to the Board under the proposal would expire.

As of August 1, 2014, there were 154,786,916 shares of Hipcricket, Inc. common stock outstanding. If approved, the reverse stock split would affect all Hipcricket common stock, stock options, warrants, and restricted stock awards outstanding immediately prior to the effective time of the reverse stock split.

Todd Wilson, Hipcricket CEO and Chairman of the Board stated: "We believe the reverse stock proposal is in the best interest of the Company and its shareholders and that a reverse stock split could help increase the marketability of our stock to a broader range of potential new investors, including potential financing sources and strategic partners. We are encouraged by our strong Q1 results and renewed commitment to nearer-term profitability and believe a reverse stock split, combined with continued progress in growing our business, would contribute to greater shareholder value creation going forward."