January 14, 2002 -- Wechsler Harwood Halebian & Feffer LLP has commenced a class action lawsuit in the United States District Court for the District of Rhode Island, on behalf of purchasers of Log On America, Inc. ("Log On America" or the Company") (Nasdaq:LOAX - news) securities between April 22, 1999 and November 20, 2000, inclusive, against defendants Log On America, David R. Paolo (Chairman, Chief Executive Officer and founder), and Kenneth M. Cornell (Chief Financial Officer).

The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, by issuing materially false and misleading statements to the market. Specifically, throughout the Class Period, defendants 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. The complaint alleges that these statements were materially false and misleading because, among other things, they failed to disclose or misrepresented (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 business; (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.

Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Log On America securities during the Class Period.

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