Goodkind Labaton Rudoff & Sucharow LLP Announces Class Action Lawsuit Against Broadcom Corporation.

Business Editors/Legal Writers

NEW YORK--(BUSINESS WIRE)--April 19, 2001

Goodkind Labaton Rudoff & Sucharow LLP announced today that a class action complaint (the "Complaint") has been commenced in the United States District Court for the Central District of California against Broadcom Corporation ("Broadcom" or the "Company")(NASDAQ:BRCM), and certain of its officers and directors, Henry T. Nicholas III, William J. Ruehle and Henry Samueli on behalf of Joseph Falzone as a representative of all persons who purchased Broadcom common stock between July 31, 2000 through February 27, 2001 (the "Class Period").

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from March 5, 2001. Any such motion for lead plaintiff need not be made through Goodkind Labaton Rudoff & Sucharow LLP, but may be made through counsel of your choice. If you wish to discuss this action or have any questions concerning this notice or your rights, feel free to contact plaintiff's counsel, Jonathan Plasse or Chris Romanelli at [phone] or by email at [e-mail], or [e-mail].

The Complaint charges Broadcom and certain of its officers and directors with violations of Section 10(b) the Securities Exchange Act of 1934 and the Securities and Exchange Commission rules promulgated thereunder. Broadcom provides integrated silicon solutions that enable the broadband digital transmission of voice, video and data to homes and businesses. The Complaint alleges that during the Class Period, defendants touted Broadcom as "the fastest growing U.S. semiconductor company to date" and reported revenue growth of 129% and 132% for the third and fourth quarter of fiscal 2000, as well as revenue growth of 30% and 18%.

The Complaint alleges that these representations were materially false and misleading because the defendants had grossly overstated Broadcom's true revenues, growth rates and financial performance by failing to disclose that Broadcom had obtained part of its revenues by giving customers millions of dollars worth of warrants for Broadcom stock in return for their orders.

Specifically, the Complaint alleges that beginning in or around July, 2000, Broadcom bought five companies: Allayer Communications, Altima Communications Inc., Silicon Spice Inc., Sibyte Inc. and VisionTech, Ltd. During negotiations for the acquisitions, Broadcom had these companies go to their customers and obtain agreements for product orders in return for warrants for the stock in the companies. Then, Broadcom converted these warrants to warrants for its own stock as part of the acquisitions.

Contrary to its representations, Broadcom's financial statements were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"). Under GAAP, Broadcom was required to reduce revenues from these product orders by the value of the warrants. Instead, Broadcom capitalized the value of the warrants, treating them as goodwill, or balance sheet assets, not liabilities. It then amortized this goodwill over a five-year period, regardless of the amount and timing of the associated revenues from customers. As a result, the Company's financial statements were materially false and misleading.

On February 27, 2001, the Wall Street Journal published an article questioning Broadcom's accounting treatment for its revenue and warrant arrangements. In the wake of the adverse facts disclosed in that article, the Company's stock price fell nearly 15%, from $63 per share the day before to $53.62 per share that day, on unusually heavy volume. The Complaint also alleges that certain Broadcom officers and directors profited from the inflated stock prices, selling more than $80 million of Broadcom stock during the Class Period.

Plaintiff seeks to recover damages on behalf of all purchasers of Broadcom common stock during the Class Period. The plaintiff is represented by Goodkind Labaton Rudoff & Sucharow LLP. Goodkind Labaton Rudoff & Sucharow LLP is a 46-lawyer firm that was formed nearly 40 years ago and is situated in New York City with a branch office in Fort Lauderdale. Goodkind Labaton Rudoff & Sucharow LLP has extensive experience in prosecuting investor class actions. For more information about Goodkind Labaton Rudoff & Sucharow LLP visit the firm's website at http://www.glrs.com.