According to the Company’s FORM 10-K for the fiscal year ended December 29, 2001, on September 18, 2000, the District Court granted Cadence’s Motion to Dismiss Plaintiffs’ Claims with leave to amend. Plantiffs did not amend their complaint, and on November 29, 2001 an order was filed dismissing the claims with prejudice and granting judgment in favor of Cadence and the individual defendants.

The original complaint alleges that during the Class Period, defendants issued to the investing public materially false and misleading statements and press releases concerning Cadence's business and operations, which omitted material information concerning problems with the Company's services business and weakness in the demand for its products. These statements caused the publicly traded price of Cadence's common stock to become and remain artificially inflated throughout the Class Period thereby damaging purchasers of Cadence's common stock. During the Class Period, the Individual Defendants, who were aware of, or recklessly disregarded, the falsity of these statements sold over 750,000 shares of Cadence common stock to an unsuspecting investing public and realized more than $21.5 million dollars in proceeds.

The class action is seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act"). This action arises under Sections 10(b) and 20(a) of the Exchange Act, 15 U.S.C. §§ 78j(b) and 78t(a), and the rules and regulations promulgated thereunder, including Securities Exchange Commission ("SEC") Rule 10b-5, 17 C.F.R. § 240.10b-5. Jurisdiction is based upon Section 27 of the Exchange Act, 15 U.S.C. § 78aa, and 28 U.S.C. §§ 1331, 1337 and 1367.