Several class actions have been filed against analytical software provider SPSS, Inc. (Nasdaq:SPSSE) and certain of its officers and directors by stockholders who purchased the company's common stock between May 2, 2001, and March 30, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.

The action alleges that SPSS failed to disclose and misrepresented the following material adverse facts: (1) that the company overstated its revenue by between $3 million and $6 million, hiding it through improper recognition of revenue in violation of Generally Accepted Accounting Principles and the company's own accounting interpretations on revenue recognition; (2) SPSS earnings per share were materially inflated; and (3) as a result of the above, the company's financial results were inflated at all relevant times.

On March 30, 2004, SPSS announced that it would delay the filing of its annual report on Form 10-K with the United States Securities and Exchange Commission to complete an additional review initiated by the company. News of this shocked the market. Shares of SPSS fell $2.55 per share or 12.17% on March 31, 2004 to close at $18.40 per share.

If you purchased securities issued by SPSS during the applicable period, you may request appointment by the court as a lead plaintiff if you do so by July 13, 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.