According to a press release dated June 29, 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 May 18, 2000, New Focus commenced an initial public offering of 5,000,000 of its shares of common stock at an offering price of $20 per share (the "New Focus IPO"). In connection therewith, New Focus 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) Credit Suisse, Robertson Stephens and Merrill Lynch had solicited and received excessive and undisclosed commissions from certain investors in exchange for which Credit Suisse, Robertson Stephens and Merrill Lynch allocated to those investors material portions of the restricted number of New Focus shares issued in connection with the New Focus IPO; and (ii) Credit Suisse, Robertson Stephens and Merrill Lynch had entered into agreements with customers whereby Credit Suisse, Robertson Stephens and Merrill Lynch agreed to allocate New Focus shares to those customers in the New Focus IPO in exchange for which the customers agreed to purchase additional New Focus shares in the aftermarket at pre-determined prices. As alleged in the complaint, the SEC is investigating underwriting practices in connection with several other initial public offerings.