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A class action has been commenced in the United States District Court for the Southern District of California on behalf of purchasers of REMEC, Inc. ("REMEC") (Nasdaq:REMC) common stock during the period between September 8, 2003 and September 8, 2004 (the "Class Period").

The complaint charges REMEC and certain of its officers and directors with violations of the Securities Exchange Act of 1934. REMEC designs and manufactures microwave and millimeter wave subsystems used in the transmission of voice, video and data traffic over wireless communications networks, and also provides advanced integrated microwave subsystem solutions for defense and space electronics applications.

The complaint alleges that during the Class Period, defendants made false and misleading statements about the Company's business and prospects. Each of the positive statements about REMEC's business made during the Class Period was materially false and misleading when made and also failed to disclose, inter alia, the following adverse information which was then known only to defendants due to their access to internal REMEC data and disclosure of which was required to be made to make the statements made not misleading:
(a) that the Company was experiencing materially higher expenses as a result of defendants' attempts to transition business from Finland to China, compounded by high costs related to establishing support for its OEM customers in China;
(b) that the Company's gross margins were decaying at a rate exceeding 130 basis points per month;
(c) that the Company was dependent upon the sale of previously written off inventory with a zero cost basis to stave off the appearance of imminent disaster;
(d) that the Company's assets were grossly overstated, especially its receivables and inventory to the tune of nearly $10 million which defendants concealed until February 2004;
(e) that the Company's long-lived assets were overstated by in excess of $10 million;
(f) that the Company did have material internal control deficiencies;
(g) that customers were pulling business back from REMEC due to poor performance, quality and concerns about the stability of the Company;
(h) that defendants were manipulating the success of REMEC's business model by selling "written down" inventory which inflated the Company's gross margins;
(i) that demand for REMEC's products was weakening due to the fact that several major REMEC customers were having serious problems with their businesses, and thus were rescheduling, stretching out, or delaying the release date of and canceling existing orders with REMEC;
(j) that due to the foregoing negative factors, REMEC was very concerned about and displeased with the state of its commercial business; and
(k) that as a result of (a)-(j) above, defendants' revised estimates for fiscal 2005 of $500 million 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.