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

Business Editors/Legal Writers

BOCA RATON, Fla.--(BUSINESS WIRE)--Oct. 2, 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 Western District of Texas, Austin Division, on behalf of all individuals and institutional investors that purchased or otherwise acquired the common stock of NetSolve, Inc. ("NetSolve" or the "Company") (Nasdaq:NTSL) between April 18, 2000 and August 18, 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 information about the Company and it's operations. For example the complaint alleges that on May 18, 2000, NetSolve Vice President Harry S. Budow provided an interview to Bloomberg Forum concerning the Company and its operations. During that interview, which was disseminated over the Bloomberg Newswire, defendant Budow represented that the Company would beat the $0.41 earnings estimate of two analysts that follow the Company and stated: "We've exceeded the estimates since we went public by 2 cents or more a quarter . . . There's no reason not to expect (it won't keep happening). . . " The complaint alleges that these statements were materially false and misleading because, among other things, they failed to disclose that the Company was not performing according to its internal projections and was experiencing declining demand for its products and services. As a result of these false and misleading statements the Company's stock traded at artificially inflated prices during the class period. Then, on August 18, 2000, defendants revealed that the Company's growth rate was slowing dramatically and that analysts should lower their earnings estimates. In response to this information, the price of NetSolve common stock plunged from $12.625 per share to $7.625 per share -- a decline of 38%. During the Class Period, certain NetSolve insiders sold their personally-held NetSolve common stock to the unsuspecting public generating aggregate proceeds of more than $3 million.

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 November 10, 2000. You are encouraged to call or e-mail the Firm or visit the Firm's website at www.classlawyer.com.