Arbinet-thexchange Inc. NASD: ARBX

A securities class action lawsuit has been filed in the United States District Court for the District of New Jersey against Arbinet-thexchange Inc. (NASDAQ: ARBX) on behalf of purchasers of the company's common stock issued in its initial public offering. These lawsuits are in addition to litigation currently pending in the Superior Court of New Jersey. The lawsuits name as defendants the company and certain of its underwriters and directors. The lawsuits allege, among other things, that the company made material misstatements or omissions in its registration statement for its initial public offering, filed with the Securities and Exchange Commission on December 16, 2004.

The Complaint charges certain of its officers, directors and underwriters with violations Section 11 of the Securities Act of 1933. Plaintiff claims that defendants issued a materially false and misleading Registration Statement and Prospectus in connection with the Company's IPO. Arbinet is the leading electronic market for trading, routing and settling communications capacity. The Complaint alleges that the Registration Statement failed to adequately disclose and misrepresented material information concerning, among other things: (i) the Company's inability to match sellers' supply with buyers' demand, and -- contrary to the Registration Statement and defendants' statements -- that the Company's trading platform was illiquid; (ii) in an effort to mask the Company's illiquid business model, the failure to disclose in the Registration Statement that the Company actually was offering incentives to sellers to do business on the exchange; and (iii) a shift from land-line minutes to cell-based minutes, thereby causing a shift to shorter-duration calls, and its negative impact on the Company's prospects.

If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.

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