TORONTO, Ontario (November 18, 2004) – MDC Partners Inc. (“MDC Partners”) (TSX: MDZ.A, NASDAQ: MDCA) announced today that it has been delayed in filing its interim financial statements (and interim Management’s Discussion & Analysis related thereto) for the third quarter and nine months ended September 30, 2004 by the required filing dates under applicable Canadian and U.S. securities laws.
Management of MDC Partners has determined, through discussions with MDC Partners’ outside auditor, that, prior to filing its interim financial statements, it is necessary to evaluate the following accounting issues: (i) the accounting treatment of a modification of previously issued non-cash stock-based compensation to a former employee, (ii) the accounting for the valuation of stock options exchanged in connection with the acquisition of a business, (iii) whether MDC Partners’ revenue recognition in connection with the manufacture and sale of certain products in MDC Partners’ secured products operations should be accounted for as a single step or a multiple step process, (iv) accounting treatment of deferred financing costs on indebtedness that has been repaid, (v) the accounting treatment of an existing litigation accrual, and (vi) valuation and accounting treatment of an embedded derivative in exchangeable securities issued in December 2003 and settled in February 2004. Particulars of the accounting issues being evaluated are set forth in the slide presentation posted on MDC Partners’ website (www.mdc-partners.com) and in the recording of a conference call with management, which will be available until Monday, November 22, 2004 by dialing 416-640-1917 or 1-877-289-8525 (Passcode 21101778#), or by visiting MDC Partners’ website.
