Federal Judge Approves Final Settlement of Accelr8 Class Action Suit

May 22, 2003, 01:00 ET from Accelr8 Technology Corporation

    DENVER, May 22 /PRNewswire-FirstCall/ -- On May 20, 2003, Federal Judge,
 the Honorable John L. Kane, approved the final settlement of the Accelr8
 Technology Corporation (OTC Bulletin Board:   ACLY) Securities Litigation Civil
 Action No. 00-K-938. Previously, Accelr8 announced the agreement to settle the
 class action lawsuit, subject to approval of the court.
     The final approval marks the end of three and a half years of litigation
 surrounding the alleged violations of Section 10(b) of the Securities Exchange
 Act of 1934 and Rule 10b-5 thereunder relating to the Company's accounting and
 public disclosure from October 1997 to March 1999.
     The final terms of the settlement call for the payment of $450,000 and the
 issuance of 375,000 shares of Accelr8 common stock to a settlement fund.
 Monies were paid to the settlement fund March 4, 2003.
     In approving the settlement, the Court noted the difficulties the class
 faced in proving any right to recovery.  David A. Zisser of Isaacson,
 Rosenbaum, Woods & Levy, attorney for Accelr8, recommended approval of the
 settlement, citing the sound business decision to terminate an open ended
 litigation expense.
     As previously reported, Accelr8's liability insurance carrier,
 Agricultural Excess and Surplus Insurance Company (AESIC) paid Accelr8
 $825,000 cash to settle a lawsuit brought by the insurance carrier in 1999
 against Accelr8 for allegedly filing false representations in its 1998 10K
 regarding product capability and the accounting for its Year 2000 toolset.
 Thomas V. Geimer, Chairman and CEO of Accelr8, noted that this payment offsets
 the costs of settlement of the class action.
     Mr. Geimer characterized the final court approval as "the end of a long
 battle" and noted that, "in settling the action brought by the SEC the Company
 was never required to restate its financial results."
     Mr. Geimer pointed out that the shareholders of Accelr8 still own a
 company with significant assets, a viable public market for its securities and
 a promising new business in the DNA/protein microarraying arena.
     Certain statements in this news release may be "forward-looking
 statements" within the meaning of Section 27A of the Securities Act of 1933,
 as amended, and Section 21E of the Securities Exchange Act of 1934, as
 amended. Statements regarding future prospects and developments are based upon
 current expectations and involve certain risks and uncertainties that could
 cause actual results and developments to differ materially from the
 forward--looking statement, including those detailed in the company's filings
 with the Securities and Exchange Commission.

SOURCE Accelr8 Technology Corporation