Abraham & Paskowitz Announces Class Action Suit Against Nice Systems, Ltd.

Business Editors & Legal Writers

NEW YORK--(BUSINESS WIRE)--Feb. 13, 2001

The law firm of Abraham & Paskowitz announces that a class action lawsuit was filed on February 13, 2001, on behalf of all purchasers of the American Depositary Shares of Nice Systems, Ltd. ("Nice Systems" or the "Company") (Nasdaq:NICE) between February 16, 2000 and February 8 2001, inclusive.

A copy of the complaint filed in this action is available from Abraham & Paskowitz by calling toll free, 1-800-938-0015, or by making a request via e-mail to [e-mail].

The action, which has not yet been assigned a docket number, is pending in the United States District Court, District of New Jersey, located at the Martin Luther King Building and U.S. Courthouse, 50 Walnut Street, Newark New Jersey 07101. The Court may be reached by telephone at 973-645-3730. A further notice to class member will be published by us once the case has been assigned a docket number and a presiding U.S. District Judge.

The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, by issuing materially false and misleading statements to the market. Specifically, defendants failed to properly account for revenues or prematurely recognized revenues in its fiscal year ending December 31, 1999 and in the first three quarters of the year 2000. The Company also failed to accurately disclose its difficulties in integrating acquisitions made during the year 2000, and the affect a necessary reorganization was having on its ability to obtain and close contracts. On February 8, 2001, however, defendants shocked the market by announcing that revenues had been improperly booked in 1999 and in the first three quarters of 2000, and that the Company would be restating those financial results. In addition, the Company disclosed a material workforce reduction, drastically reduced revenue expectations, and expected substantial losses related to a reorganization. The Company further announced that its Chairman of the Board was resigning from that position. In response to this announcement, the Company's common stock fell approximately 30% from its closing price on the previous day.

If you bought the American Depositary Shares of Nice Systems between February 16, 2000 and February 8, 2001, you may, no later than April 16, 2001, request that the Court appoint you as lead plaintiff. 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 the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Abraham & Paskowitz, or other counsel of your choice, to serve as your counsel in this action.

Abraham & Paskowitz is a boutique law firm specialized in securities and shareholder litigation. The firm, and its principals, have been actively involved in the successful prosecution of such cases throughout the United States.

If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following attorneys: Laurence Paskowitz or Jeffrey Abraham/Phone number:[phone]/Email:[e-mail].