January 14, 2002 -- A lawsuit seeking class action status has been filed in the United States District Court for the District of Rhode Island on behalf of all persons who purchased the common stock of Log On America, Inc. (formerly Nasdaq: LOAX; now OTC Bulletin Board: LOAX) ("Log On America" or "Company") between April 22, 1999, and November 20, 2000, inclusive (the "Class Period").

The Complaint alleges that Log On America, a full service provider of end- to-end business communication technologies, and members of its top management misled the investing public during the Class Period. Commencing with statements issued as part of Log On America's April 22, 1999, initial public offering ("IPO"), the defendants made several public statements representing, among other things, that 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 revenue the Company was generating from its customer base, which was predominantly consumer-focused, was not sufficient to offset the extensive capital costs that the Company was incurring; (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. When the truth was revealed, Log On America's common stock fell from a high of $35.00 per share at the beginning of the Class Period to $1.50 per share on November 20, 2000.

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