On July 8, 2008, NexCen Brands, Inc. received a Nasdaq Staff Deficiency letter indicating that, for the last 30 consecutive business days, the bid price for the company’s common stock has closed below the minimum $1.00 per share requirement for continued listing on The Nasdaq Stock Market under Nasdaq Marketplace Rule 4450a5. In accordance with Nasdaq Marketplace Rule 4450e2, the company has been provided an initial period of 180 calendar days, or until January 5, 2009, to regain compliance. The letter states that the Nasdaq staff will provide written notification that NexCen has achieved compliance with Rule 4450a5 if at any time before January 5, 2009, the bid price of the company’s common stock closes at $1.00 per share or more for a minimum of ten consecutive business days, although the letter also states that the Nasdaq staff has discretion to require compliance for a period in excess of ten consecutive business days, but generally no more than 20 consecutive business days, under certain circumstances.