The true facts which were known to each of the defendants, but actively concealed from the investing public, allegedly include the following: (1) that Liquidmetal was recording revenue on “contingent” contracts where contingencies were unfulfilled; (2) that the company lacked the proper internal controls and oversight to ensure that its subsidiary operations complied with applicable regulations; (3) that even prior to its IPO, the company was experiencing adverse trends in its electronic casings business; and (4) that the company was actually manufacturing its own revenue by infusing capital in customers in return for the customers’ orders.

On February 20, 2004, Liquidmetal announced that it will be required to restate its financial statements for 3Q 2002 to 1Q 2003 and reverse reported income attributable to one of its former suppliers of alloy ingots, Growell Metal. On March 30, 2004, the company announced that it would delay the filing of its 2003 Form 10-K due to the additional time required to complete the previously announced review and analysis relating to its restatement of results for prior periods.

If you purchased securities issued by Liquidmetal Technologies during the applicable period, you may request appointment by the court as a lead plaintiff if you do so by July 5, 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.