Class action suit filed against Nellcor Puritan Bennett, Inc. and its officers and directors alleging misrepresentations and insider trading.

SAN DIEGO--(BUSINESS WIRE)--April 14, 1997--A class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of Nellcor Puritan Bennett, Inc. ("Nellcor") common stock during the period September 29, 1995 to April 16, 1996.

The complaint charges Nellcor and certain of its officers and directors with violations of the federal securities laws and alleges that defendants participated in a fraudulent scheme and course of business that operated to manipulate Nellcor's stock price and to defraud and deceive Nellcor investors by disseminating statements and information which misrepresented the success of Nellcor's August 1995 acquisition of Puritan Bennett, the attempted integration of Nellcor's and Puritan Bennett's sales forces and the strength of Nellcor's Homecare business following Nellcor's merger with Puritan Bennett. Defendants' alleged misrepresentations increased Nellcor's stock from $49-1/2 near the beginning of the Class Period to as high as $73-1/2 in March of 1996, allowing Nellcor's insiders to sell 186,150 shares of their stock at inflated prices as high as $64-1/2 per share for over $10.5 million. The shares sold by Nellcor's insiders, moreover, were obtained by the exercise of stock options at much lower prices -- as low as $14-1/8 per share -- and were then immediately sold. After Nellcor's insiders sold nearly all their Nellcor holdings, Nellcor revealed that its merger with Puritan Bennett was not achieving the success, synergies, cost savings and revenue enhancements that defendants had previously represented. As a result of this revelation, Nellcor's stock dropped from $69 on April 11, 1996 to as low as $49-1/2 per share on April 16, 1996, on huge volume of 7.4 million shares.

Plaintiffs seek to recover damages on behalf of all purchasers of Nellcor 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 litigation 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. For additional information about Milberg Weiss, see the firm's website at http://www.milberg.com .

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, William Lerach or John Grasberger of Milberg Weiss at 800/348-6192.

CONTACT: Milberg Weiss

William Lerach or John Grasberger, 800/348-6192