According to a press release dated March 5, 1999, Raster Graphics (Pink Sheets: RGFX) today announced the final judicial approval of the settlement of certain class action lawsuits, which were pending against the Company since March 1998. The lawsuits alleged that the Company and several of its officers and directors violated federal securities laws. Judicial approval of the settlement of these lawsuits is a condition to the proposed merger between Raster Graphics and Gretag Imaging Group, Inc., a leading provider of imaging and photofinishing equipment.

The Final Judgment and Order of Dismissal was granted by the United States District Court in the Northern District of California on February 19, 1999. Under the terms of the settlement, the plaintiffs have received $4.5 million, of which Raster Graphics paid $850,000; the remaining $3.65 million has been paid by the Company's insurance carrier. These sums had been previously placed in an escrow account pending approval of the settlement.

As reported by the Company’s Form 10-Q For The Quarter Ended September 30, 1998, on October 1998, the Company entered into a Memorandum of Understanding (MoU) with the securities litigation plaintiffs. This MoU contains the essential terms of settlement for the above referenced securities litigation. In consideration for a mutually agreed release, the plaintiffs will receive $4.5 million. Of this amount, the Company has accrued $850,000 as of March 31, 1998, and subsequently paid such amount directly into an escrow account and the balance was paid by the Company's insurance carrier. The settlement is conditioned upon receiving final judicial approval. There can be no assurances such approval will be obtained.

On March 1998, several class action lawsuits were filed in both state and federal courts on purported behalf of shareholders who purchased the Company's stock during various periods in 1997 through early 1998. The complaints allege, among other things, violation of federal securities laws and that defendants made false and misleading statements in press releases, SEC filings and/or other public statements and seek unspecified damages.