The action alleges that the defendants failed to disclose the following: (1) that MasTec was materially inflating its financial results; (2) that it was prematurely recognizing revenue on various contracts; (3) that its practice of improperly recognizing revenue was in violation of Generally Accepted Accounting Principles ("GAAP"); (4) that the company overstated its inventory; (5) that it failed to have adequate reserves for bad debts, inventory, cost overruns, and projected losses on certain projects; and (6) as a result, the company's financial results were materially inflated at all relevant times.

On March 10, 2004, MasTec announced that the filing of its 10-K would be delayed past the March 15th deadline. Shares of MasTec immediately fell $2.00 per share, or 16.75%, to close at $9.94 per share. On March 18, 2004, MasTec further declined $2.31 per share, or 23%, to close at $7.75 per share, when Standard & Poor's Rating Services put the Company's BB credit rating on watch for a downgrade.

On April 13, 2004, MasTec announced its 2003 operating results and disclosed material problems that would result in a restatement of its previously announced financial results. It announced a net loss of $39.7 million ($0.83 per share) on revenue of $873.9 million for the year. Additionally, the company disclosed that during its review and analysis of its annual results, MasTec's management identified a number of matters that impacted current and prior-period operating results. These included additional reserves for bad debts and inventory, cost overruns and projected losses on certain projects, valuation reserves for state deferred tax assets, revenues recognized on various contracts, work in progress and inventory overstatements at a Canadian subsidiary, the closing of Brazilian operations, and the accrual for certain insurance reserves which was complicated by the receivership of a prior insurance carrier, as well as other items. The defendants concluded that these matters required a detailed analysis and evaluation to determine the appropriate accounting treatment.

This news shocked the market-- MasTec shares dropped $1.50 per share, or 15.5%, on April 13, 2004, on unusually large trading volumes.

If you purchased securities issued by MasTec during the applicable period, you may request appointment by the court as a lead plaintiff if you do so by June 14, 2004. 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 your claim is typical of the claims of other class members, and that you will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiffs. Your ability to share in any recovery is not affected by the decision whether or not to serve as a lead plaintiff. You may retain any counsel of your choice to serve as you in this action, or you may choose to do nothing, and remain in the class as a silent member.