Cauley & Geller, LLP Announces Class Action Lawsuit Against Caprock Communications Corp. Seeking Damages On Behalf of Shareholders.

Business Editors

BOCA RATON, Fla.--(BUSINESS WIRE)--July 26, 2000

The Law Firm of Cauley & Geller, LLP announced today that it has filed a class action in the United States District Court for the Northern District of Texas on behalf of all individuals and institutional investors that purchased the common stock of CapRock Communications Corp. ("CapRock" or the "Company") (Nasdaq:CPRK) between April 28, 2000 and July 6, 2000, inclusive, (the "Class Period"), including those who purchased shares in CapRock's June 16, 2000 Secondary Offering.

The complaint charges that the Company and certain of its officers and directors violated the federal securities laws by providing materially false and misleading statements about the Company's revenues. Specifically, the complaint alleges that defendants' false and misleading statements concerning the revenues to be derived from its dark fiber segment, which would result in a second quarter 2000 loss per share of only $0.08 and revenue of $70 million, artificially inflated the price of CapRock stock to a Class Period high of $36. 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, CapRock had been unable to have signed. The upsurge in CapRock's stock price caused by defendants' false and misleading statements allowed CapRock to sell 4.5 million shares of CapRock stock for proceeds of $83 million and enabled defendants to infuse CapRock with desperately needed capital to fund its operations. On July 6, 2000, days after CapRock's Secondary Offering was completed, CapRock 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 prior weeks, and exposed the problems CapRock had been experiencing during the Class Period with its dark fiber business. This announcement caused its stock price to drop to as low as $12 from its Class Period high of $36 on record volume of over 4 million shares on July 6, 2000, causing tens of millions of dollars in damages to members of the Class.

Cauley & Geller, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents shareholders from throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you must meet certain requirements and take appropriate action by September 25, 2000. You are encouraged to call or e-mail the Firm or visit the Firm's website at www.classlawyer.com.