Several class actions have been filed against petrochemical giant Exxon Mobil Corporation (NYSE:XOM) and certain of its officers and directors by stockholders who purchased, owned, or otherwise acquired Mobil shares and whose Mobil shares were exchanged for Exxon Mobil common stock as a result of the merger transaction approved by shareholders on May 27, 1999. The actions claim that the defendants violated federal securities laws by issuing materially false and misleading financial statements contained in a proxy filed with the Securities and Exchange Commission, overstating the Exxon's financial condition by inflating revenue and failing to account for impaired assets in violation of General Accepted Accounting Principles. The stockholders seek to recover compensatory damages for the loss of value of their stock.

The action alleges that the representations made to the SEC were materially false and misleading because they failed to disclose a material impairment of Exxon's oil and gas reserves for 1998 and earlier, and consequently, its future cash flows related to proved oil and gas reserves-- a key indicator of future operating performance. This material omission enabled Exxon to acquire Mobil for an artificially low number of shares by the new Exxon Mobil Corporation because it inflated Exxon Corporation's true asset base and future cash flows, inflating Exxon Corporation's contribution to the merged company.

If you held Mobil stock at the time of the merger, you may request appointment by the court as a lead plaintiff if you do so by May 18, 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.