Network Computing Devices settles PENDING Securities LITIGATION

Business Wire, Jan 16, 1997

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Jan. 16, 1997--Network Computing Devices, Inc. (NASDAQ:NCDI), a leading developer and manufacturer of network computers and related software, announced today that an agreement-in-principle has been reached to settle all pending securities litigation brought against the company last spring.

Under the terms of the tentative settlement, NCD contributes a total of $1.1 million toward a $12 million settlement cost, covering certain expenses associated with both the federal and California state litigation, which alleged violations of securities laws. NCD said that its cost, which will reduce fourth-quarter net income by about 2 cents per share, will be accounted for as an operating expense. A settlement fund of $11 million will be paid by NCD's insurance carriers, the company pointed out.

Commenting on the settlement, Robert G. Gilbertson, NCD's president and chief executive officer, said: "The company continues to deny the plaintiffs' claims, but it is clearly in NCD's best interests to put this behind us. Doing so enables our new management team to focus on our profitable and growing network computer business without the distraction and expense associated with continuing litigation."

The proposed settlement is subject to the negotiation and signing of a definitive settlement agreement, and approval of the settlement by the federal district court in San Francisco, California, among other conditions. NCD was represented in the litigation by Morrison & Foerster, LLP. and Testa, Hurwitz & Thibeault, LLP.

Founded in 1988, Network Computing Devices, Inc. provides network computers and network computer software for PCs that access applications and data from desktops throughout corporate Intranets. The company is based in Mountain View, California, and is traded on the NASDAQ stock exchange under the symbol NCDI. Its Internet address is www.ncd.com .

CONTACT: Network Computing Devices, Inc.

Rudy Morin, 415/919-2734

or

Stuart Pearlman & Co., Inc.

Stuart Pearlman, 212/370-4940