According to a Press Release dated 4/14/2000, in 1998, the class action cases, Alan Fields v. Dove Entertainment, Inc., et al. (Los Angeles Superior Court No. BC174659), Global Asset Allocation Consultants, L.L.C. v. Dove Entertainment, Inc., et al. (United States District Court for the Central District of California Civil Action No. 97-6253-WDK) and George, et al. v. Dove Entertainment, Inc. et al. (United States District Court for the Central District of California Civil Action No. 97-7482-R) were settled between the parties (the "Class Action Settlement"). Subsequently, the Class Action Settlement was approved by both the federal and state courts. The state court approval became final and non-appealable in the fourth quarter of 1998 and the federal court approval became final and non-appealable in the first quarter of
1999.

According to the Notice of Proposed Settlement of the Class Action dated July 16, 1998, the settlement was for $3,750,000 in cash.

The Complaint charges defendants with violation of Section 10(b) of the Exchange Act in connection with, among other things, their dissemination of materially false and misleading press releases, public statements and other materials concerning Dove's financial results.