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Cohen, Milstein, Hausfeld & Toll, P.L.L.C. Announces Class Action Lawsuit on Behalf of Investors of Hypercom Corporation

14 March 2005, 5:58pm ET
WASHINGTON--(BUSINESS WIRE)--March 14, 2005--The law firm of Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has filed a lawsuit on behalf of its client and on behalf of other similarly situated purchasers of the securities of Hypercom Corporation ("Hypercom") (NYSE:HYC) common stock between April 30, 2004 and February 3, 2005, inclusive (the "Class Period"), in the United States District Court for the District of Arizona.

The complaint names as defendants Hypercom, Christopher S. Alexander (Chairman of the Board, President, and Chief Executive Officer), and John W. Smolak (Chief Financial Officer) (collectively "Defendants"). According to the complaint, Defendants violated sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market during the Class Period. Hypercom manufactures, designs, and sells end-to-end electronic payment solutions that include point-of-sale /point-of-transaction terminals, peripheral devices, transaction management systems and application software and provides related support and services.

The complaint further alleges that during the Class Period, Defendants caused Hypercom's shares to trade at artificially inflated levels through the issuance of materially false and misleading financial statements. In addition, the complaint charges that on February 4, 2005, before the market opened, the Company issued a press release announcing that its financial results for the first three quarters of 2004 would be restated following "determination that certain leases originated during that period by the Company's UK subsidiary, Hypercom EMEA, Inc., were incorrectly accounted for as sales-type leases, rather than operating leases. This accounting error, which relates to approximately 3,200 leases, resulted in an overstatement of net revenue for the first three quarters of 2004. The Company currently estimates that the adjustment to its financial statements will decrease net revenue for the nine months ended September 30, 2004 by up to $4.0 million as compared to previously announced results, and that operating profit for the same period will decrease by approximately 65 to 75% of the amount of the net revenue reduction." Following the announcement, Hypercom shares closed down 18.3% at $4.46 per share on volume of 2.9 million shares, more than six-times the stock's average full-day turnover.

If you purchased or acquired Hypercom securities during the Class Period, you may, no later than April 9, 2005, move the court to be appointed Lead Plaintiff.

Any member of the purported class may move the Court to serve as Lead Plaintiff through counsel of their choice or may choose to remain an absent class member. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as Lead Plaintiff. To be a member of the class, you need not take any action at this time.

Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Philadelphia and Chicago, and is active in major litigation pending in federal and state courts throughout the nation. You may visit the firm's website at .

The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total in the billions of dollars.

If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:

Steven J. Toll, Esq.
Pam Macker
Cohen, Milstein, Hausfeld & Toll, P.L.L.C.
1100 New York Avenue, N.W.
West Tower B Suite 500
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600


CONTACT: Cohen, Milstein, Hausfeld & Toll, P.L.L.C.
Steven J. Toll, 888-240-0775 or 202-408-4600

Pam Macker, 888-240-0775 or 202-408-4600

SOURCE: Cohen, Milstein, Hausfeld & Toll, P.L.L.C.

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