Several class actions have been filed against microelectronic manufacturer White Electronic Designs Corporation (Nasdaq:WEDC) and certain of its officers and directors by stockholders who purchased the company's common stock between January 23, 2003, and June 9, 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 lawsuit alleges that, during the applicable period, the defendants issued materially false and misleading statements regarding White Electronic’s increasing revenues and long-term growth prospects. The defendants allegedly knew or recklessly disregarded that the company’s increasing revenues and earnings could not be sustained and that orders for sales of its microelectronic products for use in military weapons and procurement programs had been declining since at least the second quarter of fiscal 2003. The defendants failed to disclose that the declines marked a long-term change in priorities by the U.S. military following the build-up of orders prior to the armed conflict in Iraq.

On June 9, 2004, White Electronic issued a press release announcing its forecast for the third quarter of fiscal 2004, the period ending July 3, 2004. The company announced that it expected net sales to be approximately $25 million, far short of analysts’ consensus estimates of approximately $30 million in net sales for the third quarter 2004. Following this news, the company’s stock plummeted 83 cents or 13.9% to $5.16 per share, on extremely heavy trading volume.

If you purchased securities issued by White Electronic Designs Corporation during the applicable period, you may request appointment by the court as a lead plaintiff if you do so by September 20, 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.