By the closing Order dated May 10, 2001, from the Chief Judge Torruella regarding the appeal from the U.S. District Court for the District of Massachusetts, the grant of summary judgment is affirmed.

According to the docket posted, after the Court entered the September 1998 Order denying the defendants’ motion for summary judgment, on October 6, 1997, defendant Micrion Corporation filed a Renewed Motion for Summary Judgment. On December 8, 1999, the Court entered the Opinion signed by U.S. District Judge Robert E. Keeton allowing the defendant’s Renewed Motion for Summary Judgment. That same day, Judgment was entered and the case closed. On December 21, 1999, the plaintiffs filed an appeal in the First Circuit Court of Appeals.

As summarized by the Company’s FORM 10-Q For The Quarterly Period Ended September 30, 1998, on August 2, 1996, an action was filed in the U.S. District Court for the District of Massachusetts against the Company, a director and officer of the Company, and two officers of the Company. On September 9, 1996, another action was filed in the same court against the same defendants as in the first action and an additional defendant, another officer of the Company. On December 6, 1996, the plaintiffs in both actions filed an amended consolidated complaint. The consolidated complaint does not contain a claim against one of the officers. The consolidated complaint purports to be brought on behalf of a class of purchasers of the Company's common stock from April 26, 1996 through June 21, 1996. It asserts claims for violations under the federal securities laws, alleging that the Company made false and misleading statements to the public concerning the nature of its sales agreement with a customer. Factual discovery in the case has been completed. The Company filed a motion for summary judgement to dismiss the case, which was denied on September 24, 1998.