NVIDIA Corporation designs, develops and markets three dimensional (3D) graphics processors and related software. The Company's products provide interactive 3D graphics to the mainstream personal computer market.

The original Complaint charges NVIDIA and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The Complaint alleges that as part of their effort to boost the price of NVIDIA stock, Defendants misrepresented NVIDIA's true prospects in an effort to conceal NVIDIA's improper acts until they were able to sell at least $66 million worth of their own NVIDIA stock. In order to overstate revenues and assets in its 4Q 00, 1Q 01, 2Q 01 and 3Q 01, NVIDIA violated Generally Accepted Accounting Principles and SEC rules by engaging in an illegal accounting scheme. This scheme had the effect of dramatically overstating revenues and assets. Then, on Feb. 14, 2002 (after the close of the market), the Company partially admitted that its past accounting for its prior results may be inaccurate in a press release entitled, ``NVIDIA Corporation Conducting Review of Certain Transactions at the Request of the SEC.'' On this news, the Company's shares plummeted the following day.

According to a press release dated August 22, 2003, NVIDIA announced that the United States District Court for the Northern District of California has approved the dismissal of the consolidated securities class action lawsuit against NVIDIA. The court's action follows its ruling on June 12, 2003, dismissing with prejudice all of the claims arising from NVIDIA's restatement of its financial results. Plaintiffs requested the dismissal of their remaining claims and the court ordered the dismissal with prejudice as to the lead Plaintiffs. As previously announced, this lawsuit arose out of NVIDIA's announcement on February 14, 2002 that it was conducting an internal investigation of certain accounting matters and its subsequent net positive restatement of financial statements for the periods February 15, 2000 through February 14, 2002.