Idealab Statement in Response to Plaintiffs' SEC Gambit Following Court Defeat

Business Wire, August 13, 2002

Business Editors

PASADENA, Calif.--(BUSINESS WIRE)--Aug. 13, 2002

The following is a statement from Idealab:

"Following the dismissal of every substantive claim in their lawsuit, a small group of shareholders, who collectively own only 9% of the equity in Idealab, has taken its dispute to the Investment Management division of the SEC in an attempt to gain another avenue of publicity for claims that they have not been able to win in court.

"Contrary to the claims of the plaintiffs, Idealab has never diverged from its mission of creating and operating technology companies. Idealab has been, and continues to be, fully in compliance with the terms of an exemptive order issued by the SEC under the Investment Company Act of 1940.

"As with their failed complaint, the plaintiffs' latest allegations are based on distortions and fabrications and are a baseless attempt to extract a settlement for themselves to the detriment of 91% of Idealab's shareholders. We have communicated candidly and completely with the Investment Management division of the SEC during and after the exemptive order process, and we will continue to share any additional information they require to evaluate these frivolous claims."