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Date Posted: 13:07:49 12/21/99 Tue
Author: warren
Subject: Bad news for VRTY investors...

Tuesday December 21, 2:33 pm Eastern Time

Company Press Release

Milberg Weiss Files Class Action Suit Against Verity,
Inc. and Certain of Its Officers and Directors Alleging
Misrepresentations

SAN DIEGO--(BUSINESS WIRE)--Dec. 21, 1999--Milberg Weiss (http://www.milberg.com)
today announced that a class action has been commenced in the United States District Court for the Northern District of
California on behalf of purchasers of Verity, Inc. (``Verity'') (Nasdaq:VRTY - news) securities during the period between
December 1, 1999 and December 14, 1999 (the ``Class Period'').

The complaint charges Verity and certain of its officers and directors with violations of the federal securities laws by making
misrepresentations about Verity's business and earnings growth and its ability to continue to achieve profitable growth. During
October 1999 and November 1999, Verity saw its stock price soar from around $30 per share to nearly $60 per share as Verity
reported better-than-expected 1stQ F00 results and hyped its expanding product line and strong order pipeline. (All share and
per-share amounts are adjusted to reflect Verity's two-for-one stock split paid on December 3, 1999.) Based on Verity
management's statements, analysts projected revenues of more than $21 million and EPS of $0.06 for 2ndQ F00, ending
November 30, 1999. By the end of the 2ndQ F00, however, Verity had been unable to close three major sales which translated
into a minimum $5 million shortfall. Notwithstanding Verity's past practice of preannouncing earnings shortfalls, Verity said nothing
about this problem and, on the contrary, Verity management confirmed with market participants on December 1, 1999 that
business continued to be strong and the pipeline remained as strong as ever. These false statements stemmed the decline in
Verity's stock price, which between November 29, 1999 and December 1, 1999 had declined from $59-9/16 to $46-23/32, and
caused the stock to trade in the $50 - $56 range during the following two weeks. On December 14, 1999, Verity's stock price
dropped more than $5 per share on heavy volume of 1.6 million shares on seemingly no news. Then, after the markets closed,
Verity announced a devastating revenue and earnings shortfall, reporting revenues of $16.7 million and EPS of $0.45 per share
which the Company attributed to the failure to close three large deals. On a subsequent conference call, Verity management
admitted they had not disclosed the shortfall sooner in hopes of being able to announce that some of the deals had closed in
December 1999 in order to stave off total devastation of its stock price. As a result of these disclosures, on December 15, 1999,
Verity's stock price utterly collapsed, falling by 46% to as low as $24-7/8 on enormous volume of 22.2 million shares.

Plaintiff seeks to recover damages on behalf of all purchasers of Verity securities during the Class Period (the ``Class''). Plaintiff
is represented by several law firms, including Milberg Weiss Bershad Hynes & Lerach LLP, who have expertise in prosecuting
investor class actions and extensive experience in actions involving financial fraud.

Milberg Weiss has been actively engaged in commercial litigation, emphasizing securities and antitrust class actions, for more than
30 years. The firm has offices in New York, San Diego, San Francisco, Los Angeles and Boca Raton and is active in major
litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been
recognized on repeated occasions by courts which have appointed the firm to major positions in complex multi-district or
consolidated litigations. Milberg Weiss has taken a lead role in numerous important actions on behalf of defrauded investors, and
has been responsible for a number of outstanding recoveries which, in the aggregate, total approximately $2 billion.

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action
or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, William Lerach or
Darren Robbins of Milberg Weiss at 800/449-4900 or via e-mail at wsl@mwbhl.com.

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