According to a Press Release dated October 30, 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 October 14, 1999 Quicklogic
commenced an initial public offering of 6,667,000 of its shares of common stock at an offering price of $10 per share (the "Quicklogic IPO"). In connection therewith, Quicklogic Corporation 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) FleetBoston and Bear-Stearns had solicited and received excessive and undisclosed commissions from certain investors in exchange for which FleetBoston and Bear-Stearns allocated to those investors material portions of the restricted number of Quicklogic Corporation shares issued in connection with the Quicklogic IPO; and (ii) FleetBoston and Bear-Stearns had entered into agreements with customers whereby FleetBoston and Bear-Stearns agreed to allocate Quicklogic Corporation shares to those customers in the Quicklogic IPO in exchange for which the customers agreed to purchase additional Quicklogic Corporation shares in the aftermarket at pre-determined prices.