According to a press release dated February 3, 2006, the complaint charges Applica and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Applica engages in the manufacture, marketing, and distribution of small household appliances. The Company markets and distributes kitchen products, home products, pest control products, pet care products, and personal care products.

Specifically, the Complaint alleges that, throughout the Class Period, defendants issued materially false and misleading statements highlighting the Company's ability to transform its business and become more profitable. As alleged in the Complaint, these statements were materially false and misleading because they failed to disclose and misrepresented the following adverse facts, among others: (a) that the Company was experiencing decreasing demand for its products. In particular, demand for two key products, Tide™ Buzz™ Ultrasonic Stain Remover and Home Café™ single cup coffee maker, were not meeting internal expectations; (b) that Applica was materially overstating its net worth by failing to timely write down the value of its inventory which had become obsolete and unsaleable; (c) that Applica was experiencing higher product warranty returns, which it had not appropriately reserved for; (d) that Applica's financial statements issued during the Class Period were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP") and therefore were materially false and misleading; and (e) as a result of the foregoing, there was no reasonable basis for the Company's revenue and earnings guidance.

The Complaint further alleges that, on April 20, 2005, Defendants revealed that the Company would not come near achieving the guidance they had previously sponsored and/or endorsed, that the Company's business was suffering from numerous adverse factors and that the Company was marking down inventory and experiencing increased warranty expenses. Then, on April 28, 2005, Defendants further detailed the impact of these adverse factors on Applica's business. These belated disclosures had an immediate, adverse impact on the price of Applica shares.

If you bought Applica Incorporated securities between November 4, 2004 and April 28, 2005, inclusive, and would like to obtain information about the Applica Incorporated lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney.