Heelys, Inc. has received a Nasdaq Staff deficiency letter on June 10, 2009 indicating that the company no longer complies with the Nasdaq audit committee requirement requiring  a listed company to have an audit committee of at least three members. As a result of Richard E. Middlekauff’s resignation from the Board of Directors on May 27, the company’s audit committee presently has only two members.

NASDAQ has requested the company provide, on or before November 23, 2009, documentation evidencing that it filled the position.

Gary L. Martin, Chairman of the Board of Directors of Heelys, Inc., stated “We have initiated a search for a new independent director and we intend to be fully compliant as soon as possible.”