According to the docket, on June 29, 2006, the plaintiffs filed a Notice of Appeal from the May 2006 Orders and Judgments granting the defendants’ motions to dismiss the Second Amended Consolidated Class Action Complaint. The appeal is currently pending in the U.S. Court of Appeals for the Ninth Circuit.

Previously, on October 16, 2002, the Court entered the Judgment dismissing with prejudice the case as to the defendants. On November 13, 2002, the plaintiffs filed a Notice of Appeal to the U.S. Court of Appeals for the Ninth Circuit. On April 30, 2004, the Court entered the Mandate from the U.S. Court of Appeals. The judgment of the District Court was affirmed in part and reversed in part. The case was remanded back to the District Court. On June 21, 2004, the defendants filed a motion to dismiss, which was denied by the Order entered on November 2, 2004. On November 2, 2005, the plaintiffs filed a Second Amended Consolidated Class Action Complaint. On December 15, 2005, the defendants filed various motions to dismiss the Second Consolidated Amended Complaint. On May 16, 2006, the Court entered the Order granting the defendants’ motions to dismiss the Second Amended Consolidated Class Action Complaint. Judgment was entered on June 1, 2006.

In a press release dated September 26, 2002, Network Commerce Inc. (OTCBB:NWKC), announced that the United States District Court for the Western District of Washington in Seattle has dismissed with prejudice the consolidated securities class actions filed against the company and the company's chairman and former chief executive officer and president. This litigation was a consolidation of multiple putative class actions, the first of which was filed on May 10, 2001, alleging violations of the federal securities laws based on alleged misrepresentations and omissions. On January 28, 2002, the company and the company's chairman and former chief executive officer and president filed a motion to dismiss the consolidated class action complaint for failure to state a claim on which legal relief can be granted, and on September 24, 2002, the court granted the motion, and denied the plaintiffs' request to file an amended complaint. Once a judgment is entered, the order will be subject to appeal.

The original complaint charges that Network Commerce and its Chairman and CEO violated Sections 11, 12(2), and 15 of the Securities Act of 1933, and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. It is alleged that during the Class Period, defendants disseminated to the investing public false and misleading registration statements and prospectuses related to Network Commerce's Initial and Secondary Public Offerings, as well as its merger with Ubarter.com. Defendants distributed to the investing public false and misleading financial statements and press releases concerning the Company's growth of revenue, earnings, and ability to achieve profitability. In addition, each document, as well as quarterly and annual financial reports filed with the Securities and Exchange Commission (``SEC''), failed to disclose, among other things, the terms upon which Walker executed several promissory notes with the Company that led to a $4.5 million loss to the Company.