Pemstar, Inc. NASD: PMTR

A class action lawsuit was filed in the United States District Court for the District of Minnesota on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired securities of Pemstar, Inc. ("Pemstar" or the "Company") (Nasdaq:PMTR), between January 29, 2003 and January 24, 2005 (the "Class Period").

The Complaint charges Pemstar and certain of the Company's executive officers with violations of federal securities laws. Pemstar Inc. provides a range of global engineering, product design, automation and test, manufacturing and fulfillment services and solutions to its customers in the communications, computing and data storage, industrial equipment and medical industries. The Complaint alleges that, In order to make the Company more competitive, defendants sought to and did manipulate Pemstar's financials to inflate the Company's shares and bolster the Company's opportunities to generate sales from clients who might otherwise lack confidence in the Company. To compete, Pemstar claimed it had superior engineering capabilities, product quality, and flexibility and timeliness in responding to design and schedule changes.

The Complaint alleges defendants knew but concealed from the public material adverse facts, including that: (a) the Company, internally, needed margins of at least 9% in order to achieve profitability but was years away -- if ever -- from achieving profitability or even breaking even; (b) the Company's financial results were false and misleading; (c) the Company had understated its liabilities associated with its Mexican facilities; (d) the Company's accounts receivables were overstated as this asset was materially impaired; and (e) as a result, certain of defendants' projections for the Company's financial results were materially false and misleading.

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.