According to a Press Release dated Oct. 29, 2001, a complaint was filed alleging violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On or about November 16, 1999, Korea
Thrunet commenced an initial public offering of 10.1 million of its shares of
common stock at an offering price of $18 per share (the "IPO"). In connection
therewith, Korea Thrunet filed a registration statement, which incorporated a
prospectus (the "Prospectus"), with the SEC. The complaint further alleges that the Prospectus was materially false and misleading because it failed to
disclose, among other things, that: (i) the Underwriters on the offering had
solicited and received excessive and undisclosed commissions from certain
investors in exchange for which those Underwriters allocated to those investors material portions of the restricted number of IPO shares issued in connection with the Intraware IPO; and (ii) the Underwriters had entered into agreements with customers whereby the Underwriters agreed to allocate shares to those customers in the Intraware IPO in exchange for which the customers agreed to purchase additional Intraware shares in the aftermarket at pre-determined prices.