Class Action Suit Filed Against Oak Technology, Inc., its' Officers, Directors and Underwriters Alleging Misrepresentations, False Financial Statements and Insider Trading.

SANTA CLARA, Calif.--(BUSINESS WIRE)--June 7, 1996--A class action has been commenced in the California Superior Court for Santa Clara County by plaintiffs Jeffrey Hochman, Charles J. Piven, Baruch Lifshitz, Thomas Randall, Mark S. Goldman, Jerry Krim, Jack Saltz, Al Manning and Philip Fortuna on behalf of purchasers of Oak Technology, Inc. ("Oak") common stock during the period July 27, 1995 to May 22, 1996.

The complaint charges Oak and certain of its officers, directors and underwriters with violations of the California Corporations and Civil Codes by making misrepresentations about Oak's business, earnings growth and financial statements and its ability to continue to achieve profitable growth.

By issuing these allegedly false and misleading statements, defendants artificially inflated Oak's stock beginning on July 27, 1995 to a split-adjusted Class Period high of $30-3/4 in February 1996, allowing Oak's top insiders to sell or otherwise distribute 4,215,768 shares of their Oak stock at as high as $30 per share, for $104 million, before the true facts about Oak's troubled operations, diminished profitability, false financial statements and failed new product development efforts were revealed and Oak's stock collapsed to as low as $12-1/2 per share.

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

Milberg Weiss has been actively engaged in commercial litigation, emphasizing securities and antitrust class actions, for more than 20 years. The firm has offices in New York, San Diego, San Francisco and Los Angeles and is active in major litigations pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to major positions in complex multi-district or consolidated litigations. Milberg Weiss has taken a lead role in numerous important actions on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total approximately $2 billion.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffs' counsel, William Lerach of Milberg Weiss at 619/231-1058.

CONTACT: Milberg Weiss

William Lerach, 619/231-1058