Summary of CONVERA CORP - Yahoo! Finance

Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Tran

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued
Listing Rule or Standard; Transfer of Listing

On September 15, 2009, Convera Corporation (the "Company") received a non-compliance notice from the NASDAQ Stock Market ("NASDAQ") stating that for the last 30 consecutive business days the bid price of the Company's common stock has closed below the minimum $1.00 per share required for continued inclusion on The Nasdaq Global Market under Marketplace Rule 5450(a)(1).

The letter indicates that, in accordance with Marketplace Rule 5810(c)(3)(A), the Company will be provided with a grace period of 180 calendar days, or until March 15, 2010, to regain compliance with the minimum $1.00 per share minimum bid price requirement. NASDAQ's staff may determine that the Company has regained compliance with Marketplace Rule 5450(a)(1) if at any time before March 15, 2010, 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. If the Company cannot demonstrate that it has regained compliance within such time period, it will receive written notification that its securities are subject to delisting. Alternatively, the Company may be eligible for an additional grace period if it meets the initial listing standards, with the exception of bid price, for The Nasdaq Capital Market.

The Company is not presently considering any actions that may allow it to regain compliance with the NASDAQ continued listing standards and maintain its NASDAQ listing because, as disclosed by the Company in its press release on June 1, 2009 and current report on Form 8-K on June 4, 2009, the Company expects to adopt a plan of dissolution and file a certificate of dissolution to orderly wind down its business and operations. At that time, the Company's listing on NASDAQ will cease, if not earlier.

On September 18, 2009, the Company issued a press release announcing its receipt of the September 15, 2009 letter. A copy of the Company's press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.