This is a class action brought on behalf of a class consisting of all persons who purchased the common stock or publicly-traded bonds of Winstar during the period from March 10, 2000 until April 2, 2001(the "Class Period").

The Complaint alleges that Defendants engaged in a variety of manipulative and deceptive schemes that served to vastly overstate Winstar’s business success, sales and earnings and to facilitate a massive fraud on public investors. Among other things, Winstar engaged in numerous highly suspicious and unusual "end-of-quarter" transactions with Lucent – Winstar’s largest supplier and single largest source of financing – and with other parties that served to falsely and artificially inflate the Company’s reported sales and earnings. Most of these transactions lacked economic substance and could not properly serve as the basis for reported sales and revenues. As a result, much of the Company’s reported revenues and earnings during the Class Period were fictitious in nature.

The Lead Plaintiffs seek to recover damages suffered by class members and is represented by the law firm of Shapiro Haber & Urmy LLP, which has successfully prosecuted numerous securities class actions on behalf of defrauded investors. More information about the firm and its qualifications is available on the firm's website at www.shulaw.com.

Case Status: The Court has appointed Lead Plaintiffs and has appointed the law firms of Shapiro Haber & Urmy, Shalov Stone & Bonner, Stull Stull & Brody and Berger & Montague to serve as Lead Counsel in this action. The Defendant’s Motion to Dismiss the Lead Plaintiffs’ Consolidated Amended Complaint is currently pending.