September 2, 2009 (FinancialWire) — Spanish Broadcasting System, Inc. (SBS) (NASDAQ: SBSA) announced that it received a letter from the NASDAQ Stock Market, Inc. (NASDAQ) on August 27, 2009 indicating that was no longer in compliance with the audit committee requirements as set forth in NASDAQ Marketplace Rule 5605 (NASDAQ Rule).

The NASDAQ Rule requires a listed issuer to have an audit committee consisting of at least three directors who meet the NASDAQ Rule’s independence and financial sophistication standards. The company has a cure period until the earlier of its next annual shareholders’ meeting or August 11, 2010 to comply with the requirements of the NASDAQ Rule.

The letter was received following the company’s notification to NASDAQ, on August 14, 2009, of a vacancy created by the resignation of Antonio Fernandez, a member of the audit committee, the Compensation Committee and of the company’s board of directors (the “Board). As a result of Fernandez’ voluntary resignation, the company’s audit committee is currently comprised of only two independent members.

The company is in the process of searching for a new candidate to serve on the board and its audit committee who possesses qualifications that will satisfy the independence and financial sophistication standards required by the NASDAQ Rule and fully intends to regain compliance with the NASDAQ Rule within the cure period allowed by NASDAQ.

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