REPEAT/Supplemental Notice: Cylink Corp. and Certain Officers and Directors Named in a Class Action Complaint Alleging Securities Laws Violations

Business Wire, Nov 17, 1998

LOS ANGELES--(BUSINESS WIRE)--Nov. 16, 1998--A class action lawsuit has been commenced in the Northern District of California, Case No. C98-4292 VRW, and assigned to the Honorable Vaughn R. Walker, on behalf of all purchasers of shares in Cylink Corporation (NASDAQ:CYLK) during the period from April 1, 1998 through November 5, 1998 (the "Class Period").

The Complaint alleges that Cylink's statements concerning its revenue recognition practices in its Form 10-K, filed with the SEC on or about April 1, 1998, were false and misleading because the Company's accounting practices did not conform with generally accepted accounting principles ("GAAP"). The Complaint also alleges that the Company's press release dated April 23, 1998, and its Form 10-Q for the first quarter 1998 (filed with the SEC on or about May 13, 1998) were false and misleading because the reported revenue was overstated by approximately $5 million and the reported net income was materially inaccurate. The Complaint further alleges that the Company's press release dated July 23, 1998, and its Form 10-Q for the second quarter 1998 (filed with the SEC on or about August 12, 1998) were also false and misleading because the reported revenue was overstated by approximately $6.7 million and the reported net income was actually a net loss. As a result of the defendants' misrepresentations, the Complaint alleges that investors who purchased Cylink stock during the Class Period paid artificially inflated prices for their stock and as a result suffered damages.

The Complaint alleges that the fraud began on April 1, 1998, when Cylink made false and misleading statements to the public concerning its accounting practices, and continued throughout the Class Period until November 5, 1998, when it was disclosed that the Company's revenue for the first quarter 1998 should have been $10.8 million (instead of $15.8 million, as reported) and the revenue for the second quarter 1998 should have been $11.3 million (instead of $18 million, as reported). During the Class Period, no corrective statements were made by the Company.

Plaintiff seeks to recover damages on behalf of all class members and is represented by the law firm of Weiss & Yourman who has significant experience and expertise in prosecuting class actions on behalf of investors and shareholders. Plaintiff believes she has all the qualifications necessary to serve as a class representative and does not believe there are any unique defenses that may bar her from maintaining an action for the entire Class Period. Further, although plaintiff believes that there are no intra-class conflicts based on the pleadings, Judge Walker has previously held that a potential intra-class conflict may exist between (i) those shareholders who both purchased and sold their shares completely within the Class Period, and (ii) those shareholders who purchased their shares during the class period but either sold after the end of the Class Period or continue to hold shares in Cylink.

In order to preserve your rights either due to the possible inadequacy of plaintiff or due to a potential intra-class conflict, you may move the Court to serve as a lead plaintiff. If you are a member of the class described above, you may, no later than January 5, 1998, move the Court to serve as lead plaintiff, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.

If you wish to join this lawsuit, wish to become a lead plaintiff, have any information regarding the Company or this litigation, or have any questions concerning this notice or your rights or interests with respect to this matter, you may contact plaintiff's counsel, Behram Parekh, Esq. of Weiss & Yourman - Los Angeles at 800-437-7918, or Mark Smilow, Esq. of Weiss & Yourman - New York at 888-593-4771, via the Internet at www.wyca.com, or via e-mail at wyinfo@wyca.com. Please include your complete mailing address in all inquires so we may forward you more information.