According to a press release dated January 7, 2003, following its appointment as Lead Plaintiff by the United States District Court for the District of Connecticut in Berger v. Gerber Scientific, Inc., et al (02-CV-687), and, after a thorough investigation of the facts, the Louisiana Municipal Police Employees' Retirement System has determined that the claims against Gerber Scientific, Inc. and its officers and directors should be dismissed. Lead Plaintiff and Lead Counsel, the law firm of Bernstein Litowitz Berger & Grossmann LLP, believed that this course of action was consistent with their fiduciary responsibilities under the Private Securities Litigation Reform Act of 1995. Accordingly, on December 17, 2002, the Louisiana Municipal Police Employees' Retirement System, through its counsel, entered into an agreement with the defendants to voluntarily dismiss this action, without prejudice. On December 24, 2002, the Hon. Janet C. Hall approved the voluntary dismissal and ordered that the action be dismissed without prejudice.

The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between May 27, 1999 and April 12, 2002, thereby artificially inflating the price of Gerber Scientific securities. Throughout the Class Period, as alleged in the complaint, defendants issued statements regarding Gerber Scientific's quarterly and annual financial performance and filed reports confirming such performance with the United States Securities and Exchange Commission ("SEC"). The complaint alleges that these statements were materially false and misleading because, among other things, (i) the Company was employing improper inventory and reserve accounting practices in violation of Generally Accepted Accounting Principles. As a result, the Company's operating results were materially misrepresented and overstated; (ii) the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (iii) based on the foregoing, defendants' statements concerning the prospects of Gerber Scientific were lacking in a reasonable basis at all times. On April 15, 2002, before the market opened, Gerber Scientific announced that it expected to take a $12 million pre-tax charge in its fiscal fourth quarter, the period ending April 30, 2002. Additionally, Gerber Scientific announced that, in response to an investigation by the SEC into its inventory and reserve accounting practices, it was conducting an internal review of its financial reporting for the period January 1, 1998 through April 30, 2002. The Company further stated that its investigation is ongoing and once it has been completed, the Company will likely restate its financial results for the appropriate periods. In response to the Company's announcements, the price of Gerber Scientific common stock declined to $6.99 per share, a decline of more than 71% from a Class Period high of $24.50 per share, reached on July 6, 1999.