ELK GROVE VILLAGE, Ill., April 5 /PRNewswire-FirstCall/ -- In connection
with its ongoing evaluation and testing activities under Section 404 of the
Sarbanes Oxley Act of 2002 and related rules and regulations, the management
of Material Sciences Corporation (NYSE: MSC) is finalizing its evaluation of
the effectiveness of the internal controls over its financial reporting.
Although the process is not yet complete and additional deficiencies may be
identified, management concluded that certain conditions exist that constitute
a "material weakness" in its internal control over financial reporting for
fiscal year 2005, as defined by Public Company Accounting Oversight Board's
(PCAOB) Auditing Standard No. 2. The conditions that led to the material
weakness in financial reporting are associated with insufficient personnel
resources and technical accounting expertise within the company's financial
closing and reporting functions, primarily related to the departure of certain
employees in the last two months. A material weakness is defined as a control
deficiency, or combination of control deficiencies, that results in more than
a remote likelihood that a material misstatement of the annual or interim
financial statements will not be prevented or detected.
As a result, management will be unable to conclude that the company's
internal controls over financial reporting are effective as of February 28,
2005. Under PCAOB Auditing Standard No. 2, the company also expects that the
material weakness identified above will result in an adverse opinion by
Deloitte & Touche LLP, the company's independent registered public accounting
firm, on the effectiveness of the company's internal control over financial
reporting.
Management is currently addressing the identified personnel resource issue
and is committed to effectively remediating this material weakness as
expeditiously as possible, to ensure an accurate presentation of the company's
financial results for fiscal year 2005.
About Material Sciences
Material Sciences Corporation is a leading provider of material-based
solutions for electronic, acoustical/thermal and coated metal applications.
MSC uses its expertise in materials, which it leverages through relationships
and a network of partners, to solve customer-specific problems, overcoming
technical barriers and enhancing performance. MSC differentiates itself on
the basis of its strong customer orientation, knowledge of materials combined
with a deep understanding of its markets, and the offer of specific value
propositions that define how it will create and share economic value with its
customers. The company's stock is traded on the New York Stock Exchange under
the symbol MSC and is included in the Standard & Poor's SmallCap 600 Index.
Additional information about Material Sciences is available at
http://www.matsci.com .
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SOURCE Material Sciences Corporation
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Related links:
http://www.matsci.com
CONTACT:
Jeffrey J. Siemers, Vice President and Chief
Financial Officer of Material Sciences Corporation,
+1-847-718-8024, or General Info, Lynne Franklin,
+1-847-729-5716, or Analysts, Lisa Fortuna, +1-312-640-6779, both
of Financial Relations Board
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