REPEAT/Rabin & Peckel LLP Commences Class Action Against Loudcloud, Inc., Certain of Its Officers and Directors, and Its Underwriters Alleging Violations of Federal Securities Laws.

Business Editors & Legal Writers

REPEATING...

NEW YORK--(BUSINESS WIRE)--Sept. 5, 2001

A class action complaint has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased Loudcloud, Inc ( "Loudcloud" or the "Company") (NASDAQ: LDCL) common stock in its initial public offering, declared effective by the SEC on March 8, 2001 (the "Class Period"). The complaint was brought against defendants Loudcloud, certain of its officers and directors and its underwriters. The case is numbered 01 Civ. 7567 (SAS).

The Complaint alleges that defendants violated Section 11 of the Securities Act of 1933 by issuing and selling Loudcloud common stock pursuant to the March 8, 2001 initial public offering ("IPO") without disclosing to investors: 1) Loudcloud's plans to substantially reduce its workforce and to restructure itself shortly after the public offering; 2) that the public offering was not raising funds sufficient to enable the Company to reach profitability and accomplish the planned expansion described in the prospectus; 3) the imminent cancellation of a major contract to which one of the underwriters was a party; and 4) that in order to enable the public offering to go forward, undisclosed sales of shares were made to insiders and the selling price of the offering was artificially maintained by the undisclosed sale of part of the offering to insiders.

Plaintiff is represented by the law firm of Rabin & Peckel LLP. Rabin & Peckel LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. You can learn more information about Rabin & Peckel at www.rabinlaw.com.

If you purchased Loudcloud common stock during the Class Period described above, you may, no later than October 19, 2001, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at www.rabinlaw.com. If you wish to discuss this action further or have any questions concerning this announcement, or your rights or interests, please contact plaintiff's counsel, Rekha M. Carozza and Maurice Pesso, Rabin & Peckel LLP, 275 Madison Avenue, New York, NY 10016, by telephone at [phone] or [phone], by facsimile at [phone], or by e-mail at [e-mail].