Class Action Lawsuit Commenced Against Speigel, Inc. and Spiegel Holdings, Inc. by Bernstein Liebhard & Lifshitz, LLP

Market Wire, 20050229

A securities class action lawsuit was commenced on behalf of all persons who purchased or acquired common stock of Spiegel, Inc. and Spiegel Holdings, Inc. ("Spiegel" or the "Company") (OTC: SPGLA) (formerly traded as NASDAQ: SPGLA) between April 24, 2001 through and including April 19, 2002 (the "Class Period"). A copy of the Complaint is available from the Court or from Bernstein Liebhard & Lifshitz, LLP. Please visit our website at www.bernlieb.com or contact us at (800) 217-1522 or by email at SPGLA@bernlieb.com.

The case is pending in the United States District Court for the Northern District of Illinois against Defendants Spiegel, Inc., Spiegel Holdings, Inc., Michael R. Moran, Martin Zaepfel, James W. Sievers, and James Cannataro.

The complaint charges Spiegel, Inc. and Spiegel Holdings, Inc. and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that (i) the Company lacked sufficient internal controls and therefore was unable to understand its true financial standing, including the fact that FNCB had inadequate and improper internal and financial controls and accounting practices, including improperly inflated earnings, improper accounting for increasing charge-offs and seriously inflated the value of its securitized receivables; (ii) that the Company's credit card accounts were seriously overstated and credit had been extended to certain high-risk market segments without appropriate disclosure of this liability; (iii) because of these problems, the value of the Company's balance sheet and income statement were materially overstated at all relevant times; (iv) Spiegel's Eddie Bauer division was mismanaged, and had significant over-inventory. The result of these problems was a rapid deterioration in the Company's credit portfolio and significant earnings shortfalls in fiscal 2001.

Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Spiegel common stock during the Class Period. If you purchased or otherwise acquired Spiegel securities during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than February 14, 2003.

Alead 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 Bernstein Liebhard & Lifshitz, LLP, or other counsel of your choice, to serve as your counsel in this action.

Bernstein Liebhard & Lifshitz, LLP has been retained as one of the law firms to represent the class. The attorneys at Bernstein Liebhard & Lifshitz, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of hundreds of millions of dollars to investors. For more information about Bernstein Liebhard & Lifshitz, LLP, please visit our website at www.bernlieb.com.

If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact Ms. Linda Flood, Director of Shareholder Relations, at Bernstein Liebhard & Lifshitz, LLP, 10 East 40th Street, New York, New York 10016, (800) 217-1522 or 212-779-1414 or by e-mail at SPGLA@bernlieb.com.