PMTR Pemstar

Schatz & Nobel, P.C. Announces Class Action Lawsuit Against PEMSTAR, Inc. HARTFORD, Conn., June 20 /PRNewswire/ -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the District of Minnesota on behalf of all persons who purchased the publicly traded securities of PEMSTAR, Inc. (NASDAQ:PMTR) ("PEMSTAR" or the "Company") between January 29, 2003 to January 24, 2005, inclusive (the "Class Period"). The Complaint alleges that PEMSTAR and certain of its officers and directors violated federal securities laws. Specifically, defendants misrepresented the Company's business condition. Throughout the Class Period, PEMSTAR suffered from extensive liquidity constraints that inhibited PEMSTAR's ability to achieve the necessary gross margin expansion that was required for the Company to create and sustain accounting profits. The Complaint alleges that defendants failed to disclose that the Company needed gross margins of at least 9% in order to achieve profitability, a level which defendants knew it was years away from attaining. Additionally, defendants understated the liabilities associated with its Mexican facilities and overstated the Company's accounts receivables which had become materially impaired. On January 24, 2005, PEMSTAR issued a press release announcing that it was revising its outlook for the fiscal 2005 third quarter, implementing additional cost-reduction initiatives and restating its financial results for its fiscal year ended March 31, 2004, due to accounting discrepancies at its Mexico facility. By the time PEMSTAR made this disclosure, its common stock had declined nearly 70% from its Class Period high. If you are a member of the class, you may, no later than August 15, 2005, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s). For more information about the case, its claims, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at . To view a copy of the Complaint initiating the class action, which was not filed by Schatz & Nobel, or for more information about this case, class action cases in general, or Schatz & Nobel, please visit our website: http://www.snlaw.net/. CONTACT: Wayne T. Boulton or Nancy A. Kulesa Tel.: (800) 797-5499 Website: http://www.snlaw.net/ e-mail: DATASOURCE: Schatz & Nobel, P.C. CONTACT: Wayne T. Boulton or Nancy A. Kulesa, +1-800-797-5499, , both of Schatz & Nobel, P.C. Web site: http://www.snlaw.net/

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