According to the Company's Form 10-Q for the quarterly period ended September 30, 1997, on November 19, 1997, the court finalized judgment approving the settlement of the case. The Company entered into an agreement effective May 14, 1997 to settle the pending securities class actions. The Company, its insurance carriers and its former underwriters will pay $8.25 million to claims against the defendants. The Company has agreed to pay $1.7 million of this amount. In addition, the Company will issue one million shares of the Company's Common Stock to the class. The Company will also pay $2 million to the class if, within two years from final approval of the settlement, the Company engages in a merger or similar transactions which results in a change of 'control' of the Company.

Each of these cases purported to be a class action on behalf of a class of purchasers of the Company's stock. The actions, taken as a group, alleged that the Company violated the Securities Act of 1933, the Securities Exchange Act of 1934 (and Rule 10b-5 thereunder), and certain state statutes and common law doctrines. All of the actions were filed after the price of the Company's stock decreased in June 1996. Certain of the actions pertain to an alleged class of plaintiffs who purchased shares in the Company's $100 million public offering, which closed on June 5, 1996. Other actions purport to include claims on behalf of all purchasers of the Company's Common Stock during an alleged class period.