2001-09-28 18:02 (New York)

PHILADELPHIA, Sept. 28 /PRNewswire/ -- The law firm of Berger & Montague, P.C., (http://www.bergermontague.com) filed a class action suit on behalf of an investor against Internet Security Systems, Inc. ("ISS" or the "Company") (Nasdaq: ISSX) and certain officers and directors in the United States District Court for the Northern District of Georgia on behalf of all persons or entities who purchased Internet Security Systems, Inc. securities during the period from April 1, 2001 through and including July 2, 2001, inclusive (the "Class Period").

The complaint alleges that defendant and certain of its officers and directors violated Section 10(b) and 20 (a) of the Securities Exchange Act of l934, and Rule 10b-5 promulgated thereunder. The complaint alleges that defendants made materially false and misleading representations regarding the Company's revenues and earnings for the first and second quarters of fiscal year 2001 which artificially inflated the price of Internet Security Systems, Inc. stock.

The complaint specifically alleges that on April 18, 2001, ISS reported its 23rd consecutive quarter of growth. For the first quarter of 2001, it claimed revenues in excess of $61 million and net income of $6.5 million or $0.15 per share. ISS claimed that the company's "financial performance continued to show strength and our solid execution and focus on expense control enabled us to meet our profit guidance provided at the beginning of the quarter." ISS claimed on April 18, 2001 that its guidance for the second
quarter ending June 30, 2001 was to produce revenues between $65 and $67 million and earnings in the range of $0.15 per diluted share, even though defendants knew they could not achieve these numbers. ISS claimed in its April 18, 2001 press release that "the public can continue to rely on the expectations published in its earnings release and web site as being its current expectations on matters covered, unless ISS publishes a notice stating otherwise." Defendants, who were in control of ISS during the class period,
knew that their business was slowing down, because they received financial reports on a frequent basis, and knew that they had too many employees in view of the slowdown.

On July 2, 2001, after the quarter had ended, ISS issued a press release in which it stated that ISS' management expected revenues in the range of $50-$52 million, not $64-$67 million, and a loss per diluted share between $0.00 to $0.02, rather than earnings of $0.15 to $0.16. Just after the July 18, 2001 press conference in which ISS released its actual numbers, and admitted that it had over hired and over indulged on fringe benefits, travel and entertainment, ISS laid off 12% of its work force confirming what its executives had known or recklessly disregarded throughout the class period, that it had too many employees and greater expenses than it could afford, given its level of sales.

Class members who had bought the stock during the class period when ISS told them they could rely on the ISS' guidance, found that before 9 a.m. on July 3, 2001, the price if ISS stock was already down by 41.6%. If you purchased Internet Security Systems, Inc. securities during the period from April 1, 2001 through July 2, 2001, inclusive, you may, no later than November 28, 2001 move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class members(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth. If you have sustained substantial losses in Internet Securities System, Inc. securities during the Class Period, please contact Berger & Montague, P.C. at investorprotect@bm.net for a more thorough explanation of the Lead Plaintiff selection process.

The law firm of Berger & Montague, P.C. has over 50 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 currently representing 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 Offices 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 7709 (N.D. Ill.) (settled in 1999 for $220 million).

If you purchased Internet Securities Systems, Inc. securities during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:

Sherrie R. Savett, Esquire
Carole A. Broderick, Esquire
Elizabeth W. Fox, Esquire
Kimberly A. Walker, Investor Relations Manager
Berger & Montague, P.C.
1622 Locust Street
Philadelphia, PA 19103
Phone: 888-891-2289 or 215-875-3000
Fax: 215-875-5715
Website: http://www.bergermontague.com
e-mail: InvestorProtect@bm.net

/CONTACT: Sherrie R. Savett, Esquire, or Carole A. Broderick, Esquire, or Elizabeth W. Fox, Esquire, or Kimberly A. Walker, Investor Relations Manager,
all of Berger & Montague, +1-888-891-2289, or +1-215-875-3000, or fax, +1-215-875-5715,
or InvestorProtect@bm.net
Web site: http://www.bergermontague.com