Law Firm Milberg Weiss Announces Class Action Lawsuit Against FairMarket, Inc

Business Wire, August 17, 2001

Business Editors & Legal Writers

NEW YORK--(BUSINESS WIRE)--Aug. 17, 2001

The law firm of Milberg Weiss Bershad Hynes & Lerach LLP announces that a class action lawsuit was filed on August 17, 2001 on behalf of purchasers of the securities of FairMarket, Inc. ("Fairmarket" or the "Company") (NASDAQ:FAIM) between March 13, 2000 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/fairmarket/

The action is pending in the United States District Court, Southern District of New York, located at 500 Pearl Street, New York, NY against defendants FairMarket, FleetBoston Robertson Stephens ("Robertson Stephens"), Goldman Sachs & Co., Inc. ("Goldman"), Merrill Lynch, Pierce, Fenner & Smith Incorporated ("Merrill Lynch"), Salomon Smith Barney, Inc. ("Salomon"), Scott T. Randall and John Belchers.

The complaint alleges violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On or about March 13, 2000, FairMarket commenced an initial public offering of 5,000,000 of its shares of common stock at an offering price of $17 per share (the "FairMarket IPO"). In connection therewith, FairMarket 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, Goldman, Merrill Lynch and Salomon had solicited and received excessive and undisclosed commissions from certain investors in exchange for which Robertson Stephens, Goldman, Merrill Lynch and Salomon allocated to those investors material portions of the restricted number of FairMarket shares issued in connection with the FairMarket Corp. IPO; and (ii) Robertson Stephens, Goldman, Merrill Lynch and Salomon had entered into agreements with customers whereby Robertson Stephens, Goldman, Merrill Lynch and Salomon agreed to allocate FairMarket shares to those customers in the FairMarket IPO in exchange for which the customers agreed to purchase additional FairMarket shares in the aftermarket at pre-determined prices.

If you bought the securities of FairMarket Corp. between March 13, 2000 and December 6, 2000, you may, no later than September 25, 2001, request that the Court appoint you as lead plaintiff. 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.

If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following attorneys:

Steven G. Schulman or Samuel H. Rudman One Pennsylvania Plaza, 49th fl. New York, NY, 10119-0165 Phone number: (800) 320-5081 Email: fairmarketcase@milbergny.com Website: http://www.milberg.com