Class Action Lawsuit Commenced Against Legato Systems, Inc. by Bernstein Liebhard &Lifshitz, LLP.

Business Editors, Legal Writers

NEW YORK--(BUSINESS WIRE)--January 24, 2000

The Following is an Announcement by the Law Firm of Bernstein

Liebhard &Lifshitz, LLP:

A securities class action lawsuit was commenced on behalf of purchasers of the common stock of Legato Systems, Inc.(Nasdaq:LGTO) (&uot;Legato&uot; or the &uot;Company&uot;), between October 21, 1999 and January 19, 2000, inclusive, (the &uot;Class Period&uot;), in the United States District Court for the Northern District of California.

The complaint charges Legato and certain of its directors and executive officers with violations of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint alleges that the defendants issued materially false and misleading information concerning Legato's business, earnings growth and profitability in order to use the inflated stock as currency to acquire other companies in stock swap transactions. Certain Company insiders took advantage of the artificially inflated stock price to sell over $11.5 million worth of their own stock.

As part of the scheme to inflate the Company's profits and thereby its stock price, defendants caused Legato to improperly recognize revenue during the third quarter of 1999 and throughout the Class Period. On January 19, 2000, defendants revealed the truth and announced that Legato would restate its results for the third quarter and would fall well short of forecasted earnings for the fourth quarter of 1999. When the truth was disclosed, Legato's stock price plunged more than $29 per share from a Class Period high of over $79 per share.

Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Legato common stock during the Class Period.

If you purchased or otherwise acquired Legato securities during the Class Period, and either lost money on the transaction or still hold the stock, you may wish to join in the action to serve as lead plaintiff.

In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than March 20, 2000.

Bernstein Liebhard &Lifshitz, LLP has been retained as one of the law firms to represent the Class. The attorneys at Bernstein Liebhard &Lifshitz, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of hundreds of millions of dollars to investors.

If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact Mr. Mark Punzalan, Director of Shareholder Relations at Bernstein Liebhard &Lifshitz, LLP, 10 East 40th Street, New York, New York 10016, [phone] or 212-779-1414 or by e-mail at [e-mail].