Barrack Rodos Files Suit Against MicroStrategy and its Officers Alleging Misrepresentations.

Business Editors/Legal Writers

PHILADELPHIA--(BUSINESS WIRE)--April 28, 2000

Counsel for Class Plaintiff, Barrack, Rodos & Bacine, today issued the following:

A class action has been filed in the United States District Court for the Eastern District of Virginia on behalf of all persons who purchased the common stock of MicroStrategy Incorporated (NASDAQ: MSTR) ("MicroStrategy" or the "Company") between June 11, 1998 and March 20, 2000, inclusive (the "Class Period").

To sign up online: http://www.barrack.com/NewCases/NewCases.htm

The complaint charges MicroStrategy and certain of its directors and executive officers with violations of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint alleges that MicroStrategy and certain of its officers and directors reported materially false and misleading financial results throughout the Class Period. During 1998 and 1999, defendants significantly overstated MicroStrategy's revenues and earnings by improperly recognizing revenue in connection with software sales/service contracts.

On March 20, 2000, MicroStrategy shocked the market by announcing that it was "revising its 1999 and 1998 revenues and operating results" and "that certain of its software sales that include service relationships will be accounted for using contract accounting, which spreads the recognition of revenues over the entire contract period as opposed to separating it between the software and service components." The Company further revealed that it would be reducing 1999 reported revenue from $205.3 million to between $150.0 million and $155.0 million, and its result of operations from diluted net income per share of $0.15 to a diluted loss per share of between approximately $(0.43) and $(0.51), and that it would also reduce its reported revenue for 1998 from $106.4 million to between approximately $95.9 million and $100.9 million, and its result of operations from diluted net income per share of $0.08 to diluted net income per share of between approximately $0.04 and $0.01.

The plaintiff seeks to recover damages on behalf of all purchasers of MicroStrategy common stock during the Class Period. He is represented by the law firm of Barrack, Rodos & Bacine, which has extensive experience in prosecuting investor class actions involving financial fraud. Barrack, Rodos & Bacine has prosecuted securities, antitrust and consumer class actions for over 20 years. The firm has offices in Philadelphia, San Diego, New York, Boston and New Jersey and has been designated lead counsel by federal and state courts across the country in large, complex securities class actions, including those against Cendant Corp. (the largest securities class action in United States history), McKesson HBOC, Inc., Informix Corporation, Sunbeam Corporation and hundreds of others. For more information about Barrack, Rodos & Bacine, please visit their website at www.barrack.com.

If you are a member of the Class described above, you may, no later than May 19, 2000, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this case or your rights or interests, please contact:

Maxine S. Goldman, Shareholder Relations Manager, at Barrack, Rodos & Bacine, 3300 Two Commerce Square, 2001 Market Street, Philadelphia, PA 19103, at 800/417-7305 or 215/963-0600, fax number 888/417-7306 or 215/963-0838, or by e-mail at [e-mail].