Monotype Reports Inducement Grants Under Nasdaq Marketplace Rule 5635(c)

Monotype (Nasdaq: TYPE), a leader in helping to empower expression and engagement through type, technology and expertise, today announced that in association with its August 9, 2016 acquisition of Olapic, Inc., and in compliance with Nasdaq Marketplace Rule 5635(c), Monotype has granted equity awards as inducement awards to employees of Olapic who are now joining Monotype.

In connection with the transaction, Monotype has awarded 104,156 shares of restricted common stock to each of Pau Sabria, Jose de Cabo and Luis Sanz Arilla, the founders and former executive officers of Olapic, each of who will serve as an Executive Director of Monotype’s Olapic subsidiary. 43,399 shares subject to the inducement awards to each of the former Olapic founders will vest on the second anniversary of the issuance of the award, with the remaining shares awarded to each founder vesting on the third anniversary of the issuance of the award, and all shares are subject to possible accelerated vesting under certain circumstances.

Monotype also awarded 50,632 shares of restricted common stock to each of Rachel Meranus, Scott Levy and Luca Benini, former officers of Olapic. One-quarter of the shares subject to the inducement awards to the former officers will vest on the first anniversary of the grant date, and thereafter will vest in equal quarterly installments until the fourth anniversary of the grant date, and all shares are subject to possible accelerated vesting under certain circumstances.

Additionally, Monotype made inducement equity awards to 188 former employees of Olapic who are becoming employees of Monotype. The inducement awards cover an aggregate of 335,952 shares of Monotype common stock in the form of restricted stock agreements and restricted stock unit agreements. One-quarter of the shares subject to each of the restricted stock agreements and restricted stock unit agreements to the former employees of Olapic will vest on the first anniversary of the grant date and thereafter will vest in equal quarterly installments until the fourth anniversary of the grant date.

These awards were issued on August 9, 2016 and the shares of restricted common stock and restricted stock units were issued to each individual with no payment by such individual for the shares. The above described inducement awards were approved by the management development and compensation committee of Monotype’s board of directors on July 18, 2016 and July 26, 2016, in each case subject to the closing of the transaction with Olapic. Monotype has issued these awards outside of its shareholder-approved equity plan in accordance with NASDAQ Listing Rule 5635(c)(4).

Forward-looking statements

This press release may contain forward-looking statements that involve risks and uncertainties that could cause the company’s actual results to differ materially. Factors that might cause or contribute to such differences include, but are not limited to: risks associated with changes in the economic climate and risks associated with the company’s ability to integrate the acquisition of Olapic. Additional disclosure regarding these and other risks faced by the company is available in the company’s public filings with the Securities and Exchange Commission, including the risk factors included in the company’s Annual Report on Form 10-K for the year ended Dec. 31, 2015 and subsequent filings, including filings on Form 10-Q and 8-K. The financial information set forth in this press release reflects estimates based on information available at this time. While Monotype may elect to update forward-looking statements at some point in the future, the company specifically disclaims any obligation to do so, even if an estimate changes.

About Monotype

Monotype is a leader in empowering expression and engagement through a combination of type, technology and expertise. Headquartered in Woburn, Mass., Monotype provides customers worldwide with typeface solutions for a broad range of creative applications and consumer devices. The company’s libraries and e-commerce sites are home to many of the most widely used typefaces – including the Helvetica®, Frutiger® and Univers® families – as well as the next generation of type designs. Further information is available at www.monotype.com. Follow Monotype on Twitter, Instagram and LinkedIn.

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