Class Action Suit Filed Against Dignity Partners, Inc. And Its Officers And Directors Alleging Misrepresentations And False Financial Statements.

SAN DIEGO--(BUSINESS WIRE)--Dec. 19, 1996--A class action has been commenced in the United States District Court for the Northern District of California by plaintiffs Howard Hertzberg, John DeRosa and Jeffrey Feinman on behalf of purchasers of Dignity Partners, Inc. ("Dignity") common stock during the period February 14, 1996 to July 16, 1996.

The complaint charges Dignity and certain of its officers and directors with violations of the federal securities laws by issuing a series of false and misleading statements in connection with an initial public offering in which 2,702,500 shares of Dignity common stock were offered and sold to the investing public at a price of $12.00 per share in February 1996. The complaint alleges that the false and misleading statements contained in Dignity's Prospectus and Registration Statement and in other public documents and public statements issued, misled purchasers of Dignity's stock regarding the Company's revenues, earnings and financial condition. As detailed in the complaint, during the period from February 14, 1996 to July 16, 1996 (the "Class Period") defendants issued false financial statements by improperly recognizing revenue and overvaluing the Company's assets and net worth.

The complaint alleges that the Company also failed to disclose that the sales and growth forecasts contained in Dignity's Registration Statement and Prospectus and subsequent public filings and statements were made in bad faith and without a reasonable basis. The complaint further alleges that Defendants knew, or were reckless in not knowing, that these statements were overly optimistic, had no reasonable basis and were materially false and misleading.

Plaintiffs seek to recover damages on behalf of all purchasers of Dignity common stock during the Class Period (the "Class"). They are represented by several law firms, including Abbey & Ellis and Milberg Weiss Bershad Hynes & Lerach LLP who have expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

If you are a member of the Class described above, you may, no later than 60 days from today, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffs' counsel, Arthur N. Abbey or Stephen T. Rodd of Abbey & Ellis at 800/889-3701 or William Lerach or Patrick J. Coughlin of Milberg Weiss at 800/348-6192.

CONTACT: Milberg Weiss

William Lerach or Patrick J. Coughlin, 800/348-6192

or

Abbey & Ellis

Arthur N. Abbey or Stephen T. Rodd, 800/889-3701