The actions allege that CP Ships failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the company overstated its net income figures by $22 to $27 million; (2) that it insufficiently accrued certain costs which caused its net income figures to be materially inflated; (3) that the company's financial results were in violation of generally accepted accounting principles and its own accounting interpretations; and (4) that as a result, its financial results were materially inflated at all relevant times.

On August 9, 2004, CP Ships announced that, in conjunction with the release of second quarter 2004 results, it would restate its previously reported financial results. At that time, it also admitted that it had insufficiently accrued certain costs, causing its net income figures to be materially inflated. On this news, CP Ships shares fell $3.70 per share or 22.36%, on August 9, 2004, to close at $12.85 per share.

If you purchased securities issued by CP Ships during the applicable period, you may request appointment by the court as a lead plaintiff if you do so by October 12, 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.