This action is being prosecuted by the Plaintiffs' Executive Committee of In re: Initial Public Offering Securities Litigation, 21 MC 92 (SAS). By Order, dated October 12, 2001, the Honorable Shira A. Scheindlin appointed the following firms to serve as the Plaintiffs' Executive Committee: Bernstein, Liebhard & Lifshitz, LLP, Milberg Weiss Bershad Hynes & Lerach LLP, Schiffrin & Barroway LLP, Sirota & Sirota LLP, Stull, Stull & Brody LLP, and Wolf Haldenstein Adler Freeman & Herz LLP. The Plaintiffs' Executive Committee has been vested by the Court with the responsibility for the prosecution of the IPO Securities Litigation.

According to a Press Release dated November 27, 2001, the complaint alleges 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 August 10, 1999, BRAUN commenced an initial public offering of 4 million of its shares of common stock at an offering price of $7.00 per share (the "IPO"). In connection therewith, BRAUN 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 BRAUN IPO; and (ii) the Underwriters had entered into agreements with customers whereby the Underwriters agreed to allocate shares to those customers in the BRAUN IPO in exchange for which the customers agreed to purchase additional BRAUN shares in the aftermarket at pre-determined prices.