Milberg Weiss Announces Class Action Suit Against Agency.com, Ltd

Business Wire, July 12, 2001

Business Editors & Legal Writers

NEW YORK--(BUSINESS WIRE)--July 12, 2001

The law firm of Milberg Weiss Bershad Hynes & Lerach LLP announces that a class action lawsuit was filed on July 11, 2001, on behalf of purchasers of the securities of Agency.com, Ltd. ("Agency.com" or the "Company") (NASDAQ: ACOM) between December 8, 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/agency/

The action is pending in the United States District Court, Southern District of New York, located at 500 Pearl Street, New York, NY 10007, against defendants Agency.com, Goldman Sachs & Co. ("Goldman Sachs"), Salomon Smith Barney, Inc. ("Smith Barney"), Chan Suh, Kyle Shannon, Kenneth Trush and Charles Dickson.

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 December 8, 1999, Agency.com commenced an initial public offering of 5,900,000 of its shares of common stock at an offering price of $26 per share (the "Agency.com IPO"). In connection therewith, Agency.com 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) Goldman Sachs and Smith Barney had solicited and received excessive and undisclosed commissions from certain investors in exchange for which Goldman Sachs and Smith Barney allocated to those investors material portions of the restricted number of Agency.com shares issued in connection with the Agency.com IPO; and (ii) Goldman Sachs and Smith Barney had entered into agreements with customers whereby Goldman Sachs and Smith Barney agreed to allocate Agency.com shares to those customers in the Agency.com IPO in exchange for which the customers agreed to purchase additional Agency.com 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 Agency.com between December 8, 1999 and December 6, 2000, you may, no later than August 27, 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: Agencycase@milbergNY.com

Website: http://www.milberg.com