January 14, 2002 -- A securities class action lawsuit pending in the U.S. District Court for the District of Rhode Island, located at John O. Pastore Federal Building, Two Exchange Terrace, Providence, Rhode Island 02903-1779 (02CV0136) claims that Log On America, Inc. (OTCBB:LOAX) repeatedly issued statements indicating that, among other things, the company was on track to achieve the goals of its business plan and that it was successfully growing its service offerings and customer base through its numerous acquisitions.

Plaintiff seeks damages for violations of Sections 10(b)and 20(a) of the Securities Exchange Act of 1934 on behalf of all investors who bought Log On America, Inc. securities between April 2, 1999 and November 20, 2000 (the "Class Period").

The complaint alleges that the Rhode Island-based Log On America, Inc. issued false and misleading statements to the public for failing to disclose and/or misrepresenting (a) that the revenues the Company was generating from its customer base, which was predominantly consumer-focused, were not sufficient to offset the extensive capital costs that the Company was incurring in order to build out its network and provision its products; (b) that the Company's "growth-by-acquisition" strategy was not meeting with success as the Company had acquired a collection of disparate businesses which it was unable to effectively integrate into its existing businesses; (c) that the Company was experiencing weakening demand for its products and services and was attempting to transition into different markets in order to reinvigorate its sales growth; and (d) that as a result of the foregoing adverse factors, the Company would not be profitable in the near-term, if at all, and would have to completely restructure its operations and slash costs.

On November 20, 2000, the company revealed the extent of its problems and the impact it would have on the Company's future. As a result, the price of Log On America, Inc. stock closed at $1.50 per share significantly below its class period high of $35 reached on April 22, 1999.

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