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

Business Editors & Legal Writers

BOCA RATON, Fla.--(BUSINESS WIRE)--July 20, 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 California on behalf of all individuals and institutional investors that purchased the common stock of Pinnacle Systems, Inc. ("Pinnacle" or the "Company") (Nasdaq:PCLE) between April 18, 2000 and July 10, 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 financial statements regarding the Company's revenues. Specifically, the complaint alleges that defendants' false and misleading statements concerning the revenues to be derived from its streaming media products, which would result in 4th Q and Fiscal 2000 (to end 6/30/00) EPS of $.17 and $.58, artificially inflated the price of Pinnacle stock to a Class Period high of $30-5/8. The inflated stock price allowed certain Company insiders to sell $2.1 million worth of stock to the unsuspecting, investing public and enabled Pinnacle to complete the $24 million acquisition of the Avid Sports business. On 7/11/00, shortly after the acquisition was completed on 6/30/00, Pinnacle revealed that it was in fact suffering a huge drop in revenues and exposed the problems Pinnacle had been experiencing during the Class Period in successfully selling its products. This announcement caused its stock price to drop to as low as $8-13/16 on record volume of 23.7 million shares on 7/11/00 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 17, 2000. You are encouraged to call or e-mail the Firm or visit the Firm's website at www.classlawyer.com.