Hop-on Included on Nasdaq Threshold Security List of Companies Most Abused By Short Sellers

Hop-on Included on Nasdaq Threshold Security List of Companies Most Abused By Short Sellers

IRVINE, Calif., Jan. 11 /PRNewswire-FirstCall/ -- Hop-on.com, Inc. today announced today that based on a new Securities and Exchange Commission regulation governing short selling, known as Regulation SHO, it has been listed on the Threshold Security List. The list is updated daily and includes securities with excessive certificate delivery failures most commonly associated with the illegal practice of Naked Short Selling. The current list can be viewed at http://www.nasdaqtrader.com/aspx/regsho.aspx

Regulation SHO took effect January 3, 2005, and provides a new regulatory framework governing short selling of securities. It is designed with the objective of simplifying and modernizing short sale regulation and providing controls where they are most needed. At the conclusion of each settlement day, data is provided on securities that meet two criteria: 1) there are at least 10,000 shares in aggregate failed deliveries for the security for five consecutive settlement days and, 2) these fails constitute at least 0.5% of the issuer's total shares outstanding.

Regulation SHO was established based on the need to enforce the settlement of failed trades by providing guidelines, updated reporting tools and potential brokerage trading penalties resulting is a more secure system of checks and balances. Brokerage firms generally have to locate securities before accepting a short sale, a process known as "affirmative determination." Brokerage firms also have to borrow a security or be able to provide it for delivery on demand on the settlement date, three days after the transaction. If a firm cannot deliver the securities by settlement day, the trade is considered failed. Such failed trades are expected to be rectified promptly, but the industry has not been diligent in rectifying these failed trades or open short positions.

Dan Gannon, Chief Executive Officer of Hop-on, commented, "We are pleased to see this regulation taking effect. Our inclusion on the Threshold Security List verifies what have believed for some time now -- that trading in our company's stock has suffered from abusive short selling practices. In the immediate term, the naked short sellers will now have to cover their positions and we are making every attempt, legally, to force them to cover. In the longer term, we hope that this regulation will lead to legal and fair trading in shares of Hop-on, which would benefit all shareholders as the company is fairly valued for its fundamental business and prospects."

About Hop-on.com, Inc.

Hop-on develops and markets wireless phones and accessories as well as wireless surveillance systems. It product line includes the next generation CDMA2000 handsets designed by its Dallas R&D team as well as GSM/GPRS handsets. Hop-on targets its phones to both emerging market carriers and other domestic carriers and resellers needing an entry level priced phone. In addition, Hop-on offers a line of innovative and attractively priced wireless accessories for both Hop-on phones and other leading manufacturers as well as affordable, wireless surveillance systems. Hop-on is also known for developing the world's first disposable cell phone. It was an IS-95 CDMA phone that was sold to consumers with prepaid airtime and included the capability to add on additional minutes. For more information, visit www.Hop-on.com.

CONTACT:
David Pasquale, 646-536-7006 of The Ruth Group, www.TheRuthGroup.com



This Company's news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements relate to, among other things, software functionality and capacity, timing of the commencement of operations and cash flow, and are indicated by words or phrases such as "anticipate," "estimate," "plans" and similar words or phrases. The following are among the principal factors that could cause actual results to differ materially from the forward-looking statements: general business and economic conditions in the Company's operations, including the rate of inflation, population, employment and job growth rate, the pricing pressures and other competitive factors and issues arising from year 2000 information technology issues. Consequently actual events and results may vary significantly from those included in or contemplated or implied by such statements.


Source: Hop-on.com, Inc.

CONTACT: David Pasquale of The Ruth Group, +1-646-536-7006, for
Hop-on.com, Inc.

Web site: http://www.hop-on.com/

Web site: http://www.theruthgroup.com/


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