Schoengold & Sporn, P.C. Announces Securities Class Action Suit Against Xcelera.com, Inc.

NEW YORK, NY, Oct. 5, 2000 - A class action lawsuit has been commenced in the United States District Court for the District of Connecticut on behalf of purchasers of the common stock of Xcelera.com, Inc. (Amex: XLA) between April 1, 1999 and July 31, 2000 (the "Class Period").

The securities class action complaint charges the defendants with violations of the federal securities laws, by among other things, misrepresenting and/or omitting material information concerning Xcelera.com's financial condition and prospects. Specifically, the Complaint alleges that the defendants failed to disclose material information, including that as a result of certain transactions entered into prior to April 1, 1999, Xcelera.com's current shareholders face a potential dilution of 32%-45% and a potential tax liability of between $2 and $7 per share as a result of its transaction with Exodus Communications.

The dissemination of this materially misleading information and the failure to disclose material information caused Xcelera.com's common stock to be artificially inflated throughout the Class Period to as high as $112.50 per share. When the truth about Xcelera.com's financial condition was revealed to the investing public, Xcelera.com's stock price collapsed to $15.25 per share. Xcelera.com insiders took advantage of the inflated price of Xcelera.com stock and sold to unsuspecting public investors Xcelera.com stock worth over $200 million during the Class Period.

Plaintiff seeks to recover damages on behalf of class members, and is represented by the law firm of Schoengold & Sporn, P.C., 233 Broadway, New York, New York 10279, Tel. 800-232-8092, Fax: 212-267-8137, E-Mail: shareholderrelations@spornlaw.com, which has extensive experience and expertise prosecuting class actions on behalf of investors and shareholders. If you acquired Xcelera.com stock at any time during the Class Period, whether you sold it or still hold it, you may be eligible to participate in this case. Please contact Schoengold & Sporn, P.C. as soon as possible to discuss your rights and options. Schoengold & Sporn is handling this matter on a contingency basis, which means that the firm does not get paid unless and until there is a recovery.

For the past thirty years, Schoengold & Sporn has specialized in representing the victims of securities fraud. During that time, the firm -- acting as lead or co-lead counsel or as a member of an executive committee -- has recovered hundreds of millions of dollars for defrauded shareholders, including the highly publicized Wedtech securities case (member of the Executive Committee). The favorable $77.5 million Wedtech settlement was reported in the Wall Street Journal of February 10, 1992, page B6, as a:

"77.5 million settlement ... reached in a securities fraud case stemming from the Wedtech scandal ... The settlement with 29 defendants ... is believed to be one of the largest ever in a civil securities fraud case ... 'This is a global settlement,' said Samuel Sporn, a plaintiffs' attorney at the New York law firm Schoengold & Sporn. Mr. Sporn said the settlement represents almost half of the more than $160 million in stocks and bonds that Wedtech sold to the public between 1983 and 1986."

If you are a member of the class described above, you may seek to join in the above class action, or, no later than October 10, 2000, move the Court to serve as lead plaintiff provided you meet certain legal requirements. If you would like an information packet, please contact Schoengold & Sporn, P.C. at their toll-free number: (800) 232-8092 or via e-mail at shareholderrelations@spornlaw.com.

CONTACT:
Jay P. Saltzman, Esq.
Ashley Kim, Esq.
Schoengold & Sporn, P.C.
19 Fulton Street, Suite 406
New York, New York 10038
Tel: (212) 964-0046
Fax: (212) 267-8137
Toll Free: (866) 348-7700
E-Mail: shareholderrelations@spornlaw.com
Website: www.spornlaw.com

SOURCE: Schoengold & Sporn, P.C.

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