Cauley & Geller, LLP Announces Class Action Lawsuit Against Entrust Technologies Inc. Seeking Damages On Behalf of Shareholders.

Business Editors & Legal Writers

BOCA RATON, Fla.--(BUSINESS WIRE)--July 7, 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 Eastern District of Texas on behalf of all individuals and institutional investors that purchased the common stock of Entrust Technologies Inc. ("Entrust" or the "Company") (Nasdaq:ENTU) between April 19, 2000 and July 3, 2000, inclusive (the "Class Period").

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 regarding the Company's financial condition. Entrust develops, markets, and sells products and services that allow enterprises to manage trusted, secure electronic communications and transactions over networks. The complaint alleges that defendants misrepresented the revenues that Entrust was deriving from its public key infrastructure business which together with defendants' false representations that Entrust would post 2Q 2000 EPS of $0.08, operated to artificially inflate the price of Entrust stock to a Class Period high of $82 3/4 on 6/30/00. This upsurge in Entrust's stock caused by defendants' false and misleading statements enabled Entrust to complete the $703 million stock-for-stock acquisition of enCommerce. On 7/5/00, two business days after the acquisition of enCommerce was completed, Entrust revealed that it was in fact suffering a huge decline in revenues, was not posting earnings per share growth, and contrary to defendants' repeated assurances, Entrust was forced to reveal the problems it had been experiencing during the Class Period in attempting to grow its business. This announcement caused its stock price to drop to as low as $34 3/8 (or over $40 per share) on record volume of 19 million shares on 7/5/00, causing hundreds 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 take appropriate action by September 5, 2000. You are encouraged to call or e-mail the Firm or visit the Firm's website at www.classlawyer.com.