Several class actions have been filed against aviation industry security product manufacturer InVision Technologies, Inc. (Nasdaq:INVN) and certain of its officers and directors by stockholders who purchased the company's common stock between March 15, 2004, and July 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 complaint charges InVision, Giovanni Lanzara, Sergio Magistri, and Ross Mulholland with violations of the Securities Exchange Act of 1934. It alleges that the company failed to disclose the following material adverse facts: (1) that the company's foreign distributors were engaging in questionable and potentially illegal activities; (2) that its foreign distributors made improper payments in connection with foreign sales activities, which were in violation of the Foreign Corrupt Practices Act; (3) that InVision improperly accounted for the funds used in these payments; and (4) that as a result, InVision's improper accounting for such payments allowed InVision to enter into a definitive merger agreement with General Electric Company.

On July 30, 2004, InVision announced that it had met with the U.S. Department of Justice and the SEC concerning its voluntary disclosure of an internal investigation of certain possible offers of improper payments by distributors in connection with foreign sales activities. The news shocked the market, shares of InVision falling $6.39 or 12.87% per share, on August 2, 2004, to close at $43.27 per share.

If you purchased securities issued by InVision during the applicable period, you may request appointment by the court as a lead plaintiff if you do so by October 4, 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 you in this action, or you may choose to do nothing, and remain in the class as a silent member.