DENVER, April 9 /PRNewswire-FirstCall/ --
Ultimate Electronics, Inc. (Nasdaq: ULTE) said today that it had received
notice of and was served with a shareholder lawsuit filed yesterday in the
U.S. District Court in Denver. The lawsuit is a purported class action on
behalf of persons who purchased Ultimate common stock between March 13, 2002
and August 8, 2002, and alleges violations of Section 10b and Rule 10b-5 under
the Securities Exchange Act of 1934 and Section 11 of the Securities Act of
1933. The named defendants are the Company, Ed McEntire, the Company's CEO,
David J. Workman, the Company's President, and Alan E. Kessock, the Company's
CFO. The Company has initially reviewed the suit's allegations and believes
they are without merit. The Company intends to defend against the lawsuit
vigorously.
Ultimate Electronics is a leading specialty retailer of home entertainment
and consumer electronics products in 13 states. The Company operates
58 stores, including 40 stores in Arizona, Idaho, Illinois, Iowa, Minnesota,
Missouri, Nevada, New Mexico, Oklahoma, South Dakota, Texas and Utah under the
trade name Ultimate Electronics(R), 11 stores in Colorado under the trade name
SoundTrack(R) and seven stores in Minnesota under the trade name Audio
King(R). In addition, the Company operates Fast Trak, Inc., an independent
electronics repair company based in Minnesota and a wholly owned subsidiary of
Ultimate Electronics. During the past two years, the Company received
numerous industry awards including Audio Video International's 2002 "Top 10
Audio/Video Retailer of the Year."
The statements made in this news release, other than those concerning
historical financial information, are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are made based upon management's current
expectations and beliefs concerning future developments and their potential
effects upon the Company. These forward-looking statements include statements
regarding the Company's belief that the claims are without merit and its
intention to defend vigorously against them. Actual results may differ
materially from those included in the forward-looking statements due to known
and unknown risks, uncertainties and other factors. These factors include the
risks identified in the Company's Annual Report on Form 10-K for the fiscal
year ended January 31, 2002, filed with the Securities and Exchange
Commission. There can be no assurance that future developments affecting the
Company will be those anticipated by management. The Company disclaims any
obligation to update or revise any of the forward-looking statements that are
in this news release.
SOURCE Ultimate Electronics, Inc.
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Company News On-Call:
http://www.prnewswire.com/comp/877054.html
CONTACT:
Alan E. Kessock, Chief Financial Officer of
Ultimate Electronics, Inc., +1-303-801-4000,
alan.kessock@ulte.com
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