Cauley Geller Bowman & Coates LLP Announces Class Action Lawsuit Against Ziff-Davis Inc

Business Wire, Sept 13, 2001

Business Editors

LITTLE ROCK, Ark.--(BUSINESS WIRE)--Sept. 13, 2001

The Law Firm of Cauley Geller Bowman & Coates LLP announced today that a class action has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of Ziff-Davis, Inc. ("Ziff-Davis" or the "Company") (NYSE:ZDZ) securities during the period between March 30, 1999 and December 12, 2000, inclusive (the "Class Period").

A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's Web site at http://www.classlawyer.com/pr/ziff-davis.pdf.> The complaint charges defendants Ziff-Davis, CNET Networks, Inc., which acquired Ziff-Davis in a stock swap on October 17, 2000, Goldman Sachs & Co. ("Goldman Sachs"), who was one of the lead underwriters of Ziff-Davis' initial public offering, and Ziff-Davis executive officers Hippeau and Timothy C. O'Brien with 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 30, 1999, Ziff-Davis commenced an initial public offering of 8 million of its shares of common stock at an offering price of $19.00 per share (the "Ziff-Davis IPO"). In connection therewith, Ziff-Davis 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 had solicited and received excessive and undisclosed commissions from certain investors in exchange for which Goldman Sachs allocated to those investors material portions of the restricted number of Ziff-Davis shares issued in connection with the Ziff-Davis IPO; and (ii) Goldman Sachs had entered into agreements with customers whereby Goldman Sachs agreed to allocate Ziff-Davis shares to those customers in the Ziff-Davis IPO in exchange for which the customers agreed to purchase additional Ziff-Davis shares in the aftermarket at pre-determined prices. As alleged in the complaint, the Securities and Exchange Commission and the U.S. Attorneys' Office are investigating underwriting practices in connection with numerous initial public offerings commenced in 1999 and 2000.

If you bought the securities of Ziff-Davis between March 30, 1999 and December 12, 2000, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than October 15, 2001. If you are a member of this class, you can join this class action online at http://www.classlawyer.com/sign_up.html. Any member of the purported class may move the Court to serve as lead plaintiff through Cauley Geller Bowman and Coates, LLP or other counsel of their choice, or may choose to do nothing and remain an absent class member.

Cauley Geller Bowman & Coates LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents investors throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's Web site at www.classlawyer.com.

Investor Relations Department:

Jackie Addison, Sue Null or Charlie Gastineau

P.O. Box 25438

Little Rock, AR 72221-5438

Toll Free: 888/551-9944

E-mail: info@classlawyer.com