According to the docket dated October 31, 2003, on January 2, 2002, the Court entered the Order and Final Judgment by U.S. District Judge Walker D. Miller certifying the action as a class action and approving the settlement as fair and reasonable. The action was settled for $5,500,000. On July 15, 2003, the Court also entered the Order awarding plaintiffs’ counsel attorney fees of $1,650,000.00 and expenses in the amount of $284,134.02. On October 31, 2003, Judge Walker D. Miller further granted the distribution of the class settlement fund. The case is closed.

The original Complaint charges NEON, and certain of its officers and directors, with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as well as SEC Rule 10b-5 promulgated thereunder. Specifically, the Complaint alleges that, during the Class Period, NEON issued materially false and misleading statements concerning the status of the Company's business, and concealed the facts that NEON was having difficulties digesting its several acquisitions from the previous year and experiencing negative revenue and earnings trends. While issuing these materially false and misleading statements, several top officers and directors of the Company sold thousands of shares of NEON common stock to the public, reaping over $5 million in proceeds. Following the disclosure of the true status of the Company's business, the price of NEON common stock plummeted by approximately 56% from its closing price of $44.0625 per share on July 6, to close at $19.4375 per share on July 7.