On June 4, 2001, U.S. District Gary L. Taylor issued a Judgment and Order granting the stipulation for settlement. Judge Taylor approved the plan of allocation of settlement proceeds and awarded the plaintiff’s counsel fees and expenses in the amount of 25% of the settlement fund and reimbursement of litigation expenses in the amount of $169,791.33. The case was dismissed with prejudice.

By the Notice of Pendency and Proposed Settlement, the proposed settement fund is in the amount of $6.5 million.

The original complaint charges Simulation and certain of its officers, directors, venture capitalists and its underwriters with violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. The complaint alleges that on April 21, 1997, the beginning of the Class Period, Simulation announced better than anticipated 1stQ 1997 results, revenues of $13.6 million, net income of $1.5 million and EPS of $.13.