Milberg Weiss Announces Class Action Suit Against FleetBoston Robertson Stephens Inc. in Connection With The Initial Public Offering of SmartDisk Corp

Business Wire, August 1, 2001

Business Editors & Legal Writers

NEW YORK--(BUSINESS WIRE)--Aug. 1, 2001

The following is an announcement by the law firm Milberg Weiss Bershad Hynes & Lerach LLP:

The law firm of Milberg Weiss Bershad Hynes & Lerach LLP announces that a class action lawsuit was filed on August 1, 2001 on behalf of purchasers of the securities of SmartDisk Corp. ("SmartDisk" or the "Company") (NASDAQ: SMDK) between October 5, 1999 and December 6, 2000, inclusive. A copy of the complaint filed in this action is available from the Court, or can be viewed on Milberg Weiss' website at: http://www.milberg.com/smartdisk/

The action is pending in the United States District Court for the Southern District of New York, located at 500 Pearl Street, New York, NY 10007, against defendant FleetBoston Robertson Stephens Inc. ("Robertson Stephens").

The complaint alleges violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On or about October 5, 1999, SmartDisk commenced an initial public offering of 3,000,000 of its shares of common stock at an offering price of $13 per share (the "SmartDisk IPO"). In connection therewith, SmartDisk filed a registration statement, which incorporated a prospectus (the "Prospectus"), with the SEC. The complaint further alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) Robertson Stephens had solicited and received excessive and undisclosed commissions from certain investors in exchange for which Robertson Stephens allocated to those investors material portions of the restricted number of SmartDisk shares issued in connection with the SmartDisk IPO; and (ii) Robertson Stephens had entered into agreements with customers whereby Robertson Stephens agreed to allocate SmartDisk shares to those customers in the SmartDisk IPO in exchange for which the customers agreed to purchase additional SmartDisk shares in the aftermarket at pre-determined prices. As alleged in the complaint, the SEC is investigating underwriting practices in connection with several other initial public offerings.

If you bought the securities of SmartDisk between October 5, 1999 and December 6, 2000, you may, no later than September 24, 2001, request that the Court appoint you as lead plaintiff in this action. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Milberg Weiss Bershad Hynes & Lerach LLP, or other counsel of your choice, to serve as your counsel in this action.

Milberg Weiss Bershad Hynes & Lerach LLP, a 170-lawyer firm with offices in New York City, San Diego, San Francisco, Los Angeles, Boca Raton, Seattle and Philadelphia, is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of World War II and other human rights violations, and has been responsible for more than $30 billion in aggregate recoveries. The Milberg Weiss Web site (http://www.milberg.com) has more information about the firm.