The company yesterday said it is considering whether to request that the Nasdaq Listing and Hearing Review Council review the decision. If the Listing Council determines to review this decision, it may affirm, modify, reverse, dismiss or remand the decision to the panel, Industrial Enterprises said. However, such a request would not delay the panels determination to delist the companys securities.

Industrial Enterprises said it anticipates its common stock will be quoted on the Pink Sheet Electronic Quotation Service automatically and immediately after Nasdaq suspends trading.

On Jan. 24, Industrial Enterprises had received notice from Nasdaq that the company fails to comply with the minimum bid price requirements for continued listing, noting that during the preceding 30 consecutive trading days, the closing bid price for the companys common stock was below the minimum $1 per share as required under Nasdaqs marketplace rules. Nasdaq at the time informed Industrial Enterprises it had until July 22 to demonstrate compliance with the requirement. To comply, the closing bid price of the companys common stock needed to be at $1 per share or more for at least 10 consecutive trading days.

The company yesterday also released an accounting and operational update aimed at publicly clarifying information concerning its situation. As a holding company, it owns three subsidiaries: Pitt Penn, EMC and Unifide. The holding company recently requested that its lender consider splitting the current line of credit into two separate lines at the Pitt Penn and EMC level, which would then pay down the company line. It also requested an increase in the Pitt Penn line to the levels that it has historically required, about $8 million to $11 million, to boost liquidity there. The vast majority of the companys revenues are generated in the Pitt Penn subsidiary, Industrial Enterprises said.

The company said it is also investigating a steep rise in the number of shares that occurred after the departure of its interim chief financial officer in December 2006, especially those issued by a former CEO, John Mazzuto, based upon authorization granted to him by the board of directors. The company has begun a process of reviewing all of the underlying transactions of those additional issuances to determine whether or not they had a valid purpose, it said. Industrial Enterprises added that it will be reviewing the most recent financing, wherein the company entered into an agreement to issue up to two million shares to an investor group for the privilege of allowing them to give the company a secured loan of $1.5 million in two tranches, subject to many conditions. Disclosure of that financing was a primary reason that James Margulies was brought in as interim CEO and CFO on Feb. 5.

In January 2006, Industrial Enterprises acquired Pitt Penn Oil, in Creighton, Pa., for $4 million. In April 2007, Industrial Enterprises purchased lubes and additives marketer Hi-Tach Oil Co. Inc. for $350,000 in a combination of cash and promissory notes.