PALO ALTO, Calif., Dec. 22 /PRNewswire-FirstCall/ -- TO ENSURE COMPLIANCE WITH TREASURY DEPARTMENT REGULATIONS, WE ADVISE YOU THAT, UNLESS OTHERWISE EXPRESSLY INDICATED, ANY FEDERAL TAX ADVICE CONTAINED IN THIS MESSAGE WAS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, FOR THE PURPOSE OF (I) AVOIDING TAX-RELATED PENALTIES UNDER THE INTERNAL REVENUE CODE OR APPLICABLE STATE OR LOCAL TAX LAW PROVISIONS OR (II) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY TAX-RELATED MATTERS ADDRESSED HEREIN. Liberate Technologies (Pink Sheets: LBRT) announced today that it had determined the Federal income tax treatment of the special dividends it paid during 2005. The $2.10 per share special dividend paid in April 2005 is not a "dividend" for Federal income tax purposes but will be treated as either a return of capital or capital gain depending on the stockholder's investment circumstances. Of the $.15 special dividend paid in July 2005, 22.67139%, or approximately $.034 per share, is taxable as a "dividend" for Federal income tax purposes, while the remainder of approximately $.116 per share will be treated as either a return of capital or capital gain depending on the stockholder's investment circumstances. Stockholders should receive Forms 1099 reflecting this treatment in early 2006. Stockholders are urged to consult with their tax advisors regarding the Federal income tax treatment of the special dividends. Greg Wood Chief Financial Officer Liberate Technologies 650-330-8964 DATASOURCE: Liberate Technologies CONTACT: Greg Wood, Chief Financial Officer of Liberate Technologies, +1-650-330-8964, or Web site: http://www.liberate.com/

Copyright