Bernstein Liebhard & Lifshitz, LLP Announces Class Action Lawsuit Commenced Against Quanta Capital Holdings, Ltd. (QNTA)

A securities class action lawsuit was commenced in the United States District Court for the Southern District of New York, on behalf of all persons who purchased or acquired Quanta Capital Holdings, Ltd. common (NASDAQ: QNTA) or preferred (NASDAQ: QNTAP) shares (the "Class") between December 14, 2005 and March 2, 2006, inclusive (the "Class Period"). A copy of the complaint is available from the Court or from Bernstein Liebhard & Lifshitz, LLP. Please visit our website at http://www.bernlieb.com or contact us at (800) 217-1522 or by e-mail at QNTA@bernlieb.com .

The complaint charges that Defendants Quanta, Quanta officers and/or directors James J. Ritchie, Jonathan J.R. Dodd, Robert Lippincott, III, Michael J. Murphy, Nigel W. Morris, W. Russell Ramsey, Wallace L. Timmeny, and underwriters Friedman, Billings & Ramsey, Ltd. and BB&T Capital Markets made, or facilitated, misleading statements in two prospectuses (the "Prospectuses") issued in connection with the December 14, 2005 offering of 11,423,340 common shares at $4.75 per share and 3,000,000 10.25% Series A preferred shares at $25 per share.

With seventeen days to go in the fourth quarter, the Prospectuses stated that Quanta's estimated net losses for 2005 were $68.5 million. As revealed on March 2, 2006, the last day of the Class Period, net losses were $78.7 million -- 15% higher. As a result of this news, Quanta common stock plunged on extremely heavy trading volume from $4.73 per share to $2.83 per share, a decline of approximately 40%. Preferred Quanta shares are trading today around $18 per share -- a significant decline from the $25 preferred offering price.

Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Quanta common or preferred shares during the Class Period. If you purchased or otherwise acquired Quanta common or preferred shares 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 April 6, 2007.

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 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 http://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 Seth Ottensoser or Joseph R. Seidman, Jr. at Bernstein Liebhard & Lifshitz, LLP, 10 East 40th Street, New York, New York, (800) 217-1522 or (212) 779-1414 or by e-mail at QNTA@bernlieb.com .

Seth Ottensoser Joseph R. Seidman, Jr. Bernstein Liebhard & Lifshitz, LLP 10 East 40th Street New York, New York (800) 217-1522 (212) 779-1414 Email Contact