Spector & Roseman, P.C. Announces Update on Class Action Lawsuit Against Networks Associates, Inc. and Certain of its Officers and Directors For Securities Fraud and Insider Trading and Informs Investors of Other Class Action Suits.

PHILADELPHIA-(BUSINESS WIRE)-- May 12, 1999--Spector & Roseman, which has filed a class action complaint against Networks Associates (Nasdaq: NETA - news) for securities fraud, intends to amend the complaint to include the period of January 20, 1998 through and including April 19, 1999.

The Complaint alleges that Networks Associates and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

According to the Complaint, during the Class Period, defendants issued a series of materially false and misleading public statements about Networks Associates, its financial results and its business prospects, including that the Company was experiencing strong pricing trends, its business was healthy, its outlook had never been better and, as a result, it would earn EPS of $2.12 in 1999.

On April 6, 1999, Networks Associates admitted that: it had overstated its in-process research and development expenditures in 1997 and 1998; it had materially understated its amortization expenses for 1997 and 1998; and its amortization expenses for 1Q99 would increase $22 million from a planned $58 million.

Then, on April 19, 1999, defendants disclosed that the dealer inventory was so bloated that sales were expected drop significantly. The price of Networks Associates immediately dropped another 27% to 11-1/16.

During the Class Period several officers of the Company sold over 852,500 shares of Networks Associates stock at artificially inflated prices which enabled them to realize proceeds of approximately $33 million.

If you are a member of the Class described above, you may, no later than sixty days from April 7, 1999, 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 these actions or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman or Joshua H. Grabar toll free at 888/844-5862 or via E-mail at [e-mail]. For more detailed information about the firm please visit our website at http://www.spectorandroseman.com.

In addition, Spector & Roseman has filed Class Action lawsuits against the following companies at the request of shareholders who purchased securities during the class periods. Investors who purchased the following securities during the stated time periods are invited to contact us to learn more about these lawsuits.

CAMBRIDGE TECHNOLOGY PARTNERS, INC. (Nasdaq: CATP - news) 11/25/98 - 3/18/99: The Complaint alleges that the defendants issued a series of false and misleading statements about the Company's operations, financial condition and the failure of its reorganization plan throughout the Class Period causing Cambridge Tech's common stock to trade at artificially inflated prices.

PATHOGENESIS CORP. (Nasdaq: PGNS - news) 1/26/99 - 3/22/99: The Complaint charges that PathoGenesis and certain of its officers and directors issued a series of false and misleading statements regarding the market for its principal product, tobramycin solution for inhalation (TOBI). As a result of these false and misleading statements, the stock was trading at artificially inflated prices during the class period.

SUN HEALTHCARE GROUP, INC. (NYSE: SHG - news) 6/2/98 - 2/1/99: The Complaint charges defendants with violations of federal securities laws through the issuance of materially false and misleading statements about the impact that changes in the Medicare reimbursement system ("PPS") were having on the company.

In particular, the Complaint alleges that defendants failed to disclose (1) its substantially lower profit margins and reimbursement rates for ancillary services under PPS; (2) the impairment of goodwill of Sun Healthcare's domestic facilities as a result of the PPS; and (3) the substantial anticipated losses of a company which Sun Healthcare had recently acquired.

The result of these false and misleading statements was to artificially inflate the price of the stock during the class period.

OSICOM TECHNOLOGIES, INC. (Nasdaq: FIBR - news) 7/2/98 - 4/20/99: The Complaint alleges that the Company made a series of false and misleading statements about its products and business prospects. The issuance of these false and misleading statements caused the price of Osicom's common stock to be artificially inflated during the class period.

MCKESSON HBOC, INC. (NYSE: MCK -news) 7/28/98 - 4/28/99: The Complaint charges that the Company and certain of its officers and directors violated federal securities laws by failing to disclose material facts concerning the Company's improper recording of revenue from its software sales. As a result, the Company announced that it would have to restate its revenues. Shares of McKesson stock plunged almost 50 percent on the news.

Spector & Roseman, P.C., located in Philadelphia, Pennsylvania and San Diego, California, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm 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 as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws.

As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies.