HOUSTON, Feb. 18 /PRNewswire-FirstCall/ -- Particle Drilling Technologies, Inc. (Nasdaq: PDRT) (the "Company") today announced that it received a notification letter from The Nasdaq Stock Market ("Nasdaq") on February 17, 2009, indicating that the Company, as of December 31, 2008, was not currently in compliance with Marketplace Rule 4310(c)(3), which requires the Company to have a minimum of $2.5 million in stockholders' equity or $35 million market value of listed securities or $500,000 of net income from continuing operations for the most recently completed fiscal year or two of the three most recently completed fiscal years. The Company is not currently in compliance with any of these requirements.

The Company has been notified that Nasdaq is reviewing its eligibility for continued listing on Nasdaq. In order to facilitate the review, the Company is required to provide Nasdaq on or before March 4, 2009, a specific plan to achieve and sustain compliance with all of Nasdaq's listing requirements, including the timeframe for the completion of the plan. The Company has advised Nasdaq that it is working diligently to provide an equity compliance plan in order to regain compliance with Nasdaq continued listing standards and maintain its Nasdaq listing.

Upon receipt of the Company's equity compliance plan, Nasdaq will determine if the Company's plan adequately addresses the issues noted. If the Nasdaq staff determines that the Company's plan does not adequately address the issues noted, Nasdaq will provide written notification that the Company's securities will be delisted. At that time, the Company will be permitted to appeal Nasdaq's determination to a Listing Qualifications Panel. The time period for Nasdaq's review, notification, and potential appeal process is unknown.

Particle Drilling Technologies, Inc., headquartered in Houston, Texas, is a development-stage oilfield service and technology company owning several patents and pending patents related to its Particle Impact Drilling technology. The Company's technology is designed to enhance the rate-of-penetration function in the drilling process, particularly in hard rock drilling environments.

Certain statements in this press release that are not historical but are forward-looking are subject to known and unknown risks and uncertainties, which may cause PDTI's actual results in future periods to be materially different from any future performance that may be suggested in this press release. Such risks and uncertainties may include, but are not limited to, PDTI's ability to raise capital, if necessary, and its ability to obtain financing on acceptable terms, if at all, a worldwide downturn in the energy services sector, working capital constraints and other risks described in PDTI's filings with the SEC. Further, PDTI is a development stage company that operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond PDTI's control such as announcements by competitors and service providers. 

    Contacts:  Jason D. Davis VP & Interim CFO
               Particle Drilling Technologies, Inc.
               713-223-3031

               Jack Lascar / Sheila Stuewe
               DRG&E / 713-529-6600

SOURCE Particle Drilling Technologies, Inc.