PHILADELPHIA––Berger & Montague, P.C. (www.bergermontague.com) filed a class action against PDI, Inc. (“PDI”) (Nasdaq: PDII -news) and two of its principal officers in the United States District Court for the District of New Jersey, on behalf of all persons or entities who purchased PDI securities during the period from May 22, 2001 through November 12, 2001.The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 by making false and misleading statements regarding the financial effects of:  (1) PDI’s contract with Novartis for promotion of a hypertension drug, and (2) termination of its contract with GlaxoSmithKline (“GSK”) for the exclusive distribution of an antibiotic.  Among other things, defendants told investors that the Novartis contract would produce earnings of $0.25 per share in the fourth quarter of 2001; that despite impending generic competition for the GSK antibiotic, the GSK contract would, at worse, produce earnings of  $0.35-$0.40 in the fourth quarter of 2001, and $0.30 per share in 2002; and, if the $0.30 per share earnings contribution from the GSK contract was not assured, the Company would cancel the contract.

The Complaint alleges that these statements were materially false and misleading because, among other things: (1) earnings from the Novartis contract would  remain unprofitable until PDI completed marketing activities which, as PDI’s experience demonstrated, could not be completed until well into the fourth quarter of 2001; and (2) undisclosed minimum purchase requirements of the GSK contract were such that the contract could not produce earnings at or near $0.30 per share in 2002, that PDI would be forced to terminate the contract, which would result in tens of millions of dollars of losses in the fourth quarter of 2001, and no earnings from that contract in 2002.

On November 12, 2001, PDI shocked the market by issuing a press release that contrary to the Company’s prior representations, the Company suffered a loss of $17.3 million and $1.24 per share in the third quarter of 2001, and expected further losses in the fourth quarter.  In the November 12 press release and a November 13 conference call, PDI revealed that these losses were due to the need to terminate the GSK contract and the fact that marketing activities for the Novartis contract had not been and would not be completed soon enough for that contract to produce earnings in the fourth quarter of 2001.

The law firm of Berger & Montague, P.C. has 55 attorneys, all of whom represent plaintiffs in complex litigation.  The Berger firm has extensive experience representing plaintiffs in class action securities litigation and has played lead roles in major cases over the past 25 years which have resulted in recoveries of several billion dollars to investors.  The firm is has represented investors as lead counsel in actions against Rite Aid, Sotheby’s, Waste Management, Inc., Sunbeam, Boston Chicken and IKON Office Solutions, Inc.  The standing of Berger & Montague, P.C. in successfully conducting major securities and antitrust litigation has been recognized by numerous courts.  For example:
“Class counsel did a remarkable job in representing the class interests.”  In re: IKON Office Solutions Securities Litigation, Civil Action No. 98-4286 (E.D.Pa) (partial settlement for $111 million approved May, 2000).

“...(Y)ou have acted the way lawyers at their best ought to act.  And I have had a lot of cases...in 15 years now as a judge and I cannot recall a significant case where I felt people were better represented than they are here...I would say this has been the best representation that I have seen.” In Re: Waste Management, Inc. Securities Litigation, Civil Action No. 97-C 77-9 (N.D.Ill.) (settled in 1999 for $220 million).

 If you purchased PDI common stock during the period from May 22, 2001 through November 12, 2001, inclusive, you may, no later than March 15, 2002, move to be appointed lead plaintiff.  A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation.  In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class.  Under certain circumstances, one or more class member may together serve as “lead plaintiff.”  Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as lead plaintiff.

If you purchased PDI common stock, or have any questions concerning this notice or your rights with respect to this matter, you may contact:
Sherrie R. Savett, Esquire
Carole A. Broderick, Esquire
Kimberly A. Walker, Investor Relations Manager
Berger & Montague, P.C.
1622 Locust Street
Philadelphia, PA 19103
Telephone: (888) 891-2289 or (215) 875-3000
Fax: (215) 875-5715
Website: www.bergermontague.com
e-mail: InvestorProtect@bm.net