Berman, DeValerio & Pease Names CapRock Communications Corp. in Shareholder Class Action.

Business Editors & Legal Writers

BOSTON--(BUSINESS WIRE)--Aug. 16, 2000

Berman, DeValerio & Pease LLP 

a law firm specializing in representing shareholders

in class action lawsuits, issues the following press release:

CapRock Communications Corp. ("CapRock" or the "Company") (Nasdaq: CPRK) was named as a defendant in a shareholder class action filed in the United States District Court for the Northern District of Texas. The action, brought by Berman, DeValerio & Pease, LLP, www.bermanesq.com, seeks damages for violations of the federal securities laws on behalf of all investors who purchased CapRock common stock between April 28, 2000 through and including July 6, 2000 (the "Class Period").

The lawsuit charges defendants with making false and misleading statements concerning the revenues to be derived from CapRock's dark fiber segment. The Complaint alleges that CapRock's top officers knew but concealed that some $30 million of its projected $70 million in second quarter 2000 revenues was to be derived from a contract which, despite months of efforts, had not been signed. The Complaint alleges that the artificially inflated price allowed CapRock to sell 4.5 million shares of common stock for proceeds of $83 million and enabled defendants to infuse CapRock with much needed capital to fund its operations. On July 6, 2000, just days after CapRock's Secondary Offering was completed, the Company revealed that it was in fact suffering a huge drop in revenues, and that its losses would be 800% greater than defendants had stated in the previous weeks. This announcement caused the Company's stock price to plummet as low as $12 per share from a Class Period high $36.

If you purchased CapRock common stock during the Class Period and suffered a loss on your investment, you may wish to contact the lawyers at Berman, DeValerio & Pease LLP to discuss your rights and interests:

Leslie R. Stern, Esq.

Michael G. Lange, Esq.

Berman, DeValerio & Pease LLP

One Liberty Square

Boston, MA 02109

E-Mail: [e-mail].

[phone]

To learn more about this action, other cases or class actions in general, you can also visit our website at www.bermanesq.com.

If you wish to apply to be Lead Plaintiff in this action, a motion must be filed on your behalf with the court no later September 25, 2000. To be a member of the class you need not take any action at this time and you may retain counsel of your own choice. To serve as lead plaintiff, however, you must meet certain legal requirements. You may contact the attorneys at Berman, DeValerio & Pease LLP to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action.

With offices in Boston and San Francisco, Berman, DeValerio & Pease LLP has extensive experience prosecuting shareholder class actions. The firm has been appointed lead counsel in numerous actions involving companies that have issued false and misleading statements, has successfully litigated these actions, and has been singled out for its excellence by many courts. The firm prides itself on its responsiveness to shareholders and their needs in particular cases.