BOSTON, MA -- May 31, 2002 – Shapiro Haber & Urmy LLP, which filed the first class action suit alleging securities fraud against Peregrine Systems, Inc. ("Peregrine" or the "Company") (NASDAQ: PRGN), has filed a second complaint that expands the class action allegations to include all persons who purchased Peregrine securities (the "Class") during the period from July 21, 1999 through May 22, 2002, inclusive (the "Class Period").The lawsuit was filed in the United States District Court for the Southern District of California against Peregrine and certain of its officers and directors.

The amended complaint alleges that the defendants violated section 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act"), and Rule 10b-5 promulgated thereunder, and Section 20(a) of the Exchange Act, by making materially false and misleading statements regarding Peregrine’s revenues and income. On Monday, May 6, 2002, Peregrine shocked the market by announcing that its board of directors had authorized an internal investigation into accounting inaccuracies for its fiscal year 2001 and the first three quarters of 2002, and that the Company’s Chairman of the Board and Chief Executive Officer and its Chief Financial Officer had both resigned. Before the market opened on May 23, 2002, the Company again shocked the market by announcing that it was restating its financial results for its fiscal years 2000 and 2001 as well as the first three fiscal quarters of 2002, based on information that resulted from its ongoing internal investigation into accounting "errors and irregularities." The Company reported that it will, among other possible adjustments, correct previously reported revenue recognition irregularities amounting to as much as $100 million. Peregrine also disclosed that the SEC has begun an investigation into the Company’s accounting practices.

Plaintiff seeks to recover damages suffered by class members and is represented by the law firm of Shapiro Haber & Urmy LLP, which has twenty years of experience in securities litigation. The firm is currently prosecuting securities class actions on behalf of defrauded investors against Enron, Merrill Lynch and many other companies.

If you are a member of the Class described above, you may wish to join the action. You may move the court to serve as a lead plaintiff no later than July 8, 2002.