According to the Company’s Form 10-KSB for the fiscal year ended March 31, 2000, in November, 1999, the parties reached a settlement in principle for $2.25 million, all of which was covered by the Company's insurers. On May 1, 2000, the lawsuit was dismissed pursuant to an order of the district court from which no appeal has been taken. The judgment is thus now final and non-appealable. Pursuant to the stipulation of settlement, the plaintiffs dismissed their State action lawsuit with prejudice in June 2000.

The Complaint charges AML and certain officers and directors of the Company during the relevant time period with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.Specifically, the complaint alleges defendants made overly optimistic estimates regarding the Company's anticipated financial performance for fiscal years 1997 and 1998, and overly optimistic statements regarding the Company's ability to develop and to sell new products for the PCS market, all allegedly in order to profit from insider trading at artificially inflated prices.T

The first lawsuit, entitled Ronny Sussman v. AML Communications, Inc., et al., Case No. CIV 179776, was filed on March 19, 1998 in the Superior Court for the State of California.