The action charges Central Freight, Robert V. Fasso, Jerry Moyes, and Jeffrey A. Hale with violations of the Securities Act of 1933. On December 12, 2003, Central Freight announced that it had completed an IPO of 8.5 million shares of stock pursuant to a Prospectus/Registration Statement. The IPO was priced at $15.00 per share for total net proceeds of $77.9 million after underwriting discounts and commissions. Actually, the Prospectus/Registration Statement was materially false and misleading and failed to disclose, among other things, the following: (1) that the company's dynamic resource planning process implementation was going disastrously; (2) that its aggressive expansion projects were negatively affecting the its profit margins; (3) that the company's insurance and claims accrual rate was off because it failed to have sufficient reverses for accident frequency; and (4) that it was experiencing severe operational issues. When this adverse information was disclosed, CFL shares plummeted to $8.55 per share.

If you purchased securities issued by drugstore.com during the applicable period, you may request appointment by the court as a lead plaintiff if you do so by August 24, 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.