newAX, inc.

Shareholders filed a class action settlement against the company claiming that the Tender Offer was coercive, was not accompanied by disclosure of all material facts, and did not represent a fair price. The case was filed on behalf of those who tendered shares in the company's Tender Offer and was filed in the Court of Chancery of the State of Delaware in and for New Castle County. newAX has agreed to a Stipulation of Settlement to pay an additional fifteen cents per previously tendered share to all of its shareholders who tendered shares to the Company pursuant to its tender offer which closed October 21, 2005. (Apr-18-06) [PR NEWSWIRE]