Mr. Hussein disputed the results of the 2005 shareholder election of directors.  After IVS Associates overruled his objections, Mr. Hussein commenced a lawsuit in the California Superior Court against the Company and every one of its directors (other than the one he had selected to sit on the Board).  In his Complaint in the lawsuit (filed on October 17, 2005), Mr. Hussein made his usual attack on the other Board members’ independence and asked the court to (1) find that the 2005 election of directors at the Meeting was invalid and (2) order that the votes be re-tabulated without certain disputed Shares being counted.  The court ruled against Mr. Hussein, finding he was “not entitled , as an equitable or legal matter, to the relief sought because [he] showed no violation of New York Stock Exchange Rules, Section 709, or any other applicable statute, rule, or common law doctrine in connection with the 2005 election for the board of directors.”  The court ordered that formal judgment be awarded against Mr. Hussein and in favor of the Company and all of the directors sued by Mr. Hussein – specifically Sheldon Razin, Louis Silverman, Patrick Cline, Maurice DeWald, Vincent Love, and Steven Plochocki.

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