According to the Revised Order and Judgment entered on May 29, 2001, U.S. District Judge William J. Rea approves the Settlement set forth in the Stipulation and finds that the Proposed Plan of Allocation is fair & equitable. The Court dismisses the Litigation on the merits with prejudice. Judge Rea awards Lead Counsel attorneys' fees 25% of the Settlement Fund and reimbursement of litigation expenses in the amount of $117,093.72 together with interest earned thereon. Further, according to the Company’s SEC Form 10-Q For The Quarterly Period Ended September 30, 2001, a total of 232,000 shares of common stock and warrants to purchase 200,000 shares of NetLojix's (formerly Avtel Communications) common stock at an exercise price of $8.00 per share with a term of 2 years was distributed to the claimant class members. During the three month period ended March 31, 2000, the Company recorded a charge against earnings of $998,000 and a liability relating to the settlement.

The original complaint charges AVCO and certain officers and directors of the Company with violations of the federal Securities Exchange Act of 1934, and in particular the anti-fraud provisions of Section 10(b). The Complaint alleges that defendants issued a press release on November 12, 1998 wherein they announced that its DSLink Service would provide "high-speed" Internet access over Asymmetric Digital Subscriber Line ("ADSL"). Defendants stated that ADSL is a new modem-based technology that provides a dedicated connection to the Internet that is up to 50 times faster than conventional modems. Defendants further falsely stated that the Company planned to release the new DSLink Service on a national basis. With the release of these allegedly false statements the Company's stock soared from $2.375 per share to over $36 per share on 180 times normal volume before trading in the Company's stock was halted by NASDAQ.