Class Action Complaint Against ADAC Laboratories, Inc., by the Law Offices of Jeffrey S. Abraham.

NEW YORK--(BUSINESS WIRE)--Dec. 31, 1998--The following was released today by the Law Offices of Jeffrey S. Abraham:

A class action complaint alleging violations of Section 10(b) of the Securities and Exchange Act of 1934 has been filed against ADAC Laboratories, Inc. ("ADAC" or the "Company") (Nasdaq: ADAC) and certain of its senior officers and directors.

The lawsuit was filed in the U.S. District Court for the Northern District of California on behalf of purchasers of the Company's common stock between November 4, 1996 and December 29, 1998 (the "Class Period") and alleges that defendants engaged in improper accounting methods and overstated the Company's earnings in order to inflate the price of ADAC's stock during the Class Period.

The plaintiff is represented by, among other firms, the Law Offices of Jeffrey S. Abraham which has extensive experience in substantial recoveries and successful results on behalf of defrauded investors.

If you are a member of the class, you may move the court not later than 60 days from December 29, 1998, to serve as lead plaintiff. If you wish to discuss this action, have any questions concerning this notice, or your rights or interests with respect to this matter, or if you have any information you wish to provide to us, please contact Jeffrey S. Abraham by calling toll-free [phone] or [phone] in New York City, or via Internet electronic mail at [e-mail] or by writing the Law Offices of Jeffrey S. Abraham, The Lincoln Building, 60 East 42nd Street, 47th Floor, New York, New York 10165.