Apple (AAPL)

Stamm v. Apple Computer, Inc./Allen v. Apple Computer, Inc.

Plaintiff Stamm filed a purported class action on November 12, 2004 in Circuit Court, Cook County, Illinois alleging that a defect in Apple’s 17-inch Studio Display monitors results in dimming of half of the screen and constant blinking of the power light. The Company removed the case to Federal Court on December 22, 2004. The Court remanded it to State Court on March 22, 2005 on Plaintiff’s motion. The Company had filed a motion to dismiss on January 27, 2005 which was taken off calendar due to the

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remand. On January 28, 2005 a second plaintiff, Allen, filed a purported nationwide class action in Los Angeles Superior Court alleging identical claims. Plaintiff Stamm dismissed the Stamm case on September 2, 2005. An amended complaint in the Allen case was filed on October 24, 2005, adding additional named plaintiffs and expanding the alleged class to include purchasers of the 20-inch Apple Cinema Display and the 23-inch Apple Cinema HD Display. The amended complaint alleges that the displays have a purported defect that causes dimming of one-half of the screen, and that the Company misrepresented the quality of the displays and/or concealed the purported defect. Plaintiffs assert claims under California Business & Professions Code §17200 (unfair competition); California Business & Professions Code §17500 (false advertising) and the Consumer Legal Remedies Act. The amended complaint seeks remedies including damages and equitable relief. On November 14, 2005, the Company filed an answer to the amended complaint as to the allegations regarding the 17-inch display and a demurrer/motion to strike as to the allegations regarding the 20-inch and 23-inch displays on the ground that plaintiffs failed to allege that they purchased those displays. At a status conference on November 21, 2005, the Court ordered Plantiffs to amend their complaint. The Company’s demurrer is off calendar pending this amendment.

Stamm v. Apple
Computer, Inc./Allen v. Apple Computer, Inc.

Plaintiff Stamm filed a
purported class action on November 12, 2004 in Circuit Court, Cook County,
Illinois alleging that a defect in Apple’s 17-inch Studio Display monitors
results in dimming of half of the screen and constant blinking of the power
light. The Company removed the case to Federal Court on December 22, 2004.
The Court remanded it to State Court on March 22, 2005 on Plaintiff’s
motion. The Company had filed a motion to dismiss on January 27, 2005
which was taken off calendar due to the

22

remand. On January 28,
2005 a second plaintiff, Allen, filed a purported nationwide class action in
Los Angeles Superior Court alleging identical claims. Plaintiff Stamm dismissed
the Stamm case on September 2, 2005. An amended complaint in the Allen case was filed on October 24,
2005, adding additional named plaintiffs and expanding the alleged class to
include purchasers of the 20-inch Apple Cinema Display and the 23-inch
Apple Cinema HD Display. The amended complaint alleges that the displays have a
purported defect that causes dimming of one-half of the screen, and that the
Company misrepresented the quality of the displays and/or concealed the
purported defect. Plaintiffs assert claims under California Business &
Professions Code §17200 (unfair competition); California Business &
Professions Code §17500 (false advertising) and the Consumer Legal Remedies Act.
The amended complaint seeks remedies including damages and equitable relief. On
November 14, 2005, the Company filed an answer to the amended complaint as
to the allegations regarding the 17-inch display and a demurrer/motion to
strike as to the allegations regarding the 20-inch and 23-inch
displays on the ground that plaintiffs failed to allege that they purchased
those displays. At a status conference on November 21, 2005, the Court ordered
Plantiffs to amend their complaint. The Company’s demurrer is off calendar
pending this amendment.

Stamm v. Apple Computer, Inc./Allen v. Apple Computer, Inc.

Plaintiff Stamm filed a purported class action on November 12, 2004 in Circuit Court, Cook County, Illinois alleging that a defect in Apple’s 17” Studio Display monitors results in dimming of half of the screen and constant blinking of the power light. The Company removed the case to federal court on December 22, 2004.  The Court remanded it to State Court on March 22, 2005 on Plaintiff’s motion.  The Company had filed a motion to dismiss on January 27, 2005 which is now off calendar due to the remand.  On January 28, 2005 a second Plaintiff, Allen, filed a purported class action in Los Angeles Superior Court alleging identical claims.  Mediation for both cases is scheduled for August 2005.

Stamm v. Apple Computer, Inc./Allen v. Apple Computer, Inc.

Plaintiff Stamm filed a purported class action on November 12, 2004 in Circuit Court, Cook County, Illinois alleging that a defect in Apple’s 17” Studio Display monitors results in dimming of half of the screen and constant blinking of the power light.  The Company is investigating the claim. The Company removed the case to federal court on December 22, 2004.  The Court remanded it to State Court on March 22, 2005 on Plaintiff’s motion.  The Company had filed a motion to dismiss on January 27, 2005 which is now off calendar due to the remand.  On January 28, 2005 a second Plaintiff, Allen, filed a purported class action in Los Angeles Superior Court alleging identical claims.  Mediation for both cases is scheduled for August 2005.