Shareholder Class Action Filed Against Stellent, Inc. by the Law Firm of Schiffrin & Barroway, LLP -- STEL


BALA CYNWYD, Pa., August 8, 2003 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:

Notice is hereby given that a class action lawsuit was filed in the United States District Court for the District of Minnesota on behalf of all purchasers of the common stock of Stellent, Inc. ("Stellent" or the "Company") (Nasdaq:STEL) from October 2, 2001 through April 1, 2002, inclusive (the "Class Period").

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.

The complaint charges Stellent and certain of its officers and directors with violations of the Securities and Exchange Act of 1934. More specifically, the complaint alleges that defendants issued materially false and misleading statements and failed to disclose: (1) that significant amounts of the Company's sales were to affiliates that were financed by the Company; (2) that its customer base was beginning to defer purchases and that the expected revenue growth, which the Company touted in its press releases, would no longer occur; (3) that the Company's senior management, including defendants Hanzilk and Olson, were individual shareholders in Active IQ; (4) that without revenue recognition from the Active IQ deal, the Company would have missed its earnings per share consensus estimate of $0.06 for the third quarter; and (4) that a $3.5 million note to a distributor had to be paid off through short-term bridge financing provided by an entity (Beartooth Capital), which was controlled by defendant Olson.

The nature of Stellent's reliance on affiliates and unusual related party transactions to bolster its reported financial results and purported revenue figures began to be disclosed on or about March 12, 2002, when Fulcrum Global Partners LLC ("Fulcrum") issued a report (the "Fulcrum Report") questioning Stellent's financial situation in an investment analysis of the Company that discussed for the first time that Stellent's revenues improperly included revenues received from affiliates. Finally, on April 1, 2002, the last day of the Class Period, Stellent was forced to report that its revenues for the quarter ended March 31, 2002 would be almost 50 percent less than it had previously forecast. Following this announcement, shares of Stellent fell almost 13% to close at $8.38 per share on extraordinarily high trading volume.

Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered in excess of a billion dollars on behalf of institutional and high net worth individual investors. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com/currentcases.cfm.

If you are a member of the class described above, you may, not later than September 29, 2003, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.

More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca



            

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