According to the Company’s FORM 10-Q For the quarterly period ended March 31, 2002, on March 19, 2002, the pending purported class action litigation was dismissed with leave to amend. The deadline for plaintiffs to file an amended complaint expired on April 10, 2002. The deadline for plaintiffs to file a notice of appeal from the order dismissing the complaint was April 18, 2002. Plaintiffs neither filed an amended complaint, nor a notice of appeal.

As previously disclosed in the Company’s FORM 10-K for the fiscal year ended December 31, 2001, between June 22, 2000 and August 14, 2000, four purported class-action complaints were filed against the Company and individuals of the Company in the United States District Court for the Southern District of Florida. On September 11, 2000 the court consolidated all four actions, and appointed four individuals to serve as "lead plaintiffs." The plaintiffs filed their Consolidated Amended Complaint on November 20, 2000. On January 4, 2001 the defendants filed a motion to dismiss the consolidated complaint. The plaintiffs filed an opposition to the defendants' motion to dismiss on February 20, 2001. The Company's reply in support of the motion to dismiss was filed on March 21, 2001 and oral argument was held on April 2, 2001. On February 5, 2002, a United States Magistrate Judge issued a Report and Recommendation recommending that the amended complaint be dismissed, without prejudice. On February 15, 2002, the plaintiffs filed an objection to the Report and Recommendation. The District Court has not yet acted on the Report and Recommendation. Discovery in this action has not yet commenced, and is stayed pursuant to statutes based on the filing of the motion to dismiss, which stay would be lifted in the event that the Court denies such motion to dismiss.

The original Complaint charges that SGAI and certain of its officers violated the federal securities laws. The Complaint alleges that defendants misled investors by issuing false and misleading statements, including announcing record results without disclosing that its revenue growth could not be sustained and that the Company failed to have adequate reserves for doubtful accounts. As a result, SGAI common stock rose to over $21 per share, allowing Company officers and other insiders to sell over 3,000,000 shares of SGAI for proceeds of more than $35,000,000 during the Class Period. At the end of the Class Period, SGAI stock closed at $4.91 per share. The Complaint seeks recovery of damages suffered by all purchasers of SGAI stock during the Class Period.