Sunrise Telecom Announces Notice of Pendency of Settlement of Stockholder Derivative Litigation

SAN JOSE, Calif., July 22, 2011 /PRNewswire/ -- Sunrise Telecom® Incorporated (OTC:SRTI), today announced that the Santa Clara County Superior Court of the State of California granted preliminary approval of the settlement of the derivative action pending against certain Sunrise Telecom current and former directors and officers, and against Sunrise Telecom as a nominal defendant.  The Summary Notice of Pendency and Proposed Settlement of Shareholder Derivative Action is set forth in its entirety below:

ROBBINS UMEDA LLP
MARC M. UMEDA (197847)
KEVIN A. SEELY (199982)
ASHLEY R. PALMER (246602)
600 B Street, Suite 1900

San Diego, CA 92101
Telephone: (619) 525-3990
Facsimile:  (619) 525-3991

THE SHUMAN LAW FIRM
KIP B. SHUMAN (145842)
885 Arapahoe Avenue
Boulder, CO 80302
Telephone: (303) 861-3003
Facsimile:  (303) 484-4886

TO:  ALL OWNERS OF SUNRISE TELECOM INCORPORATED ("SUNRISE TELECOM" OR THE "COMPANY") COMMON STOCK AS OF MAY 11, 2011 ("CURRENT SUNRISE TELECOM STOCKHOLDERS")

YOU ARE HEREBY NOTIFIED that the parties to the above-captioned action (the "Action") have entered into a Stipulation and Agreement of Settlement (the "Stipulation") to resolve the issues raised by the Action.

This notice is not intended to be an expression of any opinion by the Court with respect to the merits of the claims made in the Action, but is merely to advise you of the pendency and settlement of the Action.

PLEASE BE FURTHER ADVISED that pursuant to an Order of the Superior Court of the State of California, County of Santa Clara (the "Court"), a hearing will be held on September 30, 2011, at 9:00 a.m., before the Honorable James P. Kleinberg to determine whether: (i) the Settlement of the Action upon the terms and subject to the conditions set forth in the Stipulation is fair, reasonable, and adequate and should be approved by the Court; (ii) the Action should be dismissed with prejudice; (iii) the application of Plaintiff's Counsel for agreed upon attorneys' fees and expenses should be finally approved; and (iv) the application by Plaintiff for an incentive award should be approved.

If you are a Current Sunrise Telecom Stockholder, your rights to pursue certain derivative claims on behalf of Sunrise Telecom may be affected by this settlement.

A detailed Notice of Pendency and Proposed Settlement of Shareholder Derivative Action ("Notice") describing the Action, the proposed settlement, and the rights of Current Sunrise Telecom Stockholders with regard to the settlement has been filed with the Court and is available for viewing on the websites of Robbins Umeda LLP at http://www.robbinsumeda.com/notices.html and Sunrise Telecom at http://www.sunrisetelecom.com/investors.  

Any Current Sunrise Telecom Stockholder may object and/or appear and show cause, if he, she, or it has any concern, why the settlement should not be approved as fair, reasonable, and adequate, or why the Judgment should not be entered thereon, or why the Fees and Expenses Award should not be awarded to Plaintiff's Counsel, or the Incentive Award granted to Plaintiff; provided, however, unless otherwise ordered by the Court, no Current Sunrise Telecom Stockholder shall be heard or entitled to contest the approval of the terms and conditions of the settlement, or, if approved, the Judgment to be entered thereon approving the same, or the attorneys' fees and reimbursement of expenses to be awarded to Plaintiff's Counsel, unless that stockholder has, at least ten business days prior to the Settlement Hearing: (i) filed with the Clerk of the Court a written objection to the settlement setting forth: (a) the nature of the objection; (b) proof of ownership of Sunrise Telecom common stock through the date of the Settlement Hearing, including the number of shares of Sunrise Telecom common stock and the date of purchase; and (c) any documentation in support of such objection; and (ii) if a Current Sunrise Telecom Stockholder intends to appear and requests to be heard at the Settlement Hearing, such stockholder must have, in addition to the requirements of (i) above, filed with the Clerk of the Court:  (a) a written notice of such stockholder's intention to appear; (b) a statement that indicates the basis for such appearance; and (c) the identities of any witnesses the stockholder intends to call at the Settlement Hearing and a statement as to the subjects of their testimony.  If a Current Sunrise Telecom Stockholder files a written objection and/or written notice of intent to appear, such stockholder must also simultaneously serve copies of such notice, proof, statement, and documentation, together with copies of any other papers or briefs such stockholder files with the Court (either by hand delivery or by first class mail) upon each of the following:

Any Current Sunrise Telecom Stockholder who does not make his, her, or its objection in the manner provided herein shall be deemed to have waived such objection and shall forever be foreclosed from making any objection to the fairness, reasonableness, or adequacy of the settlement as incorporated in the Stipulation, unless otherwise ordered by the Court, but shall otherwise be bound by the Judgment to be entered and the releases to be given.

PLEASE DO NOT TELEPHONE THE COURT OR SUNRISE TELECOM REGARDING THIS NOTICE.

About Sunrise Telecom Incorporated

Sunrise Telecom is a leader in test and measurement solutions for telecom, cable and wireless networks. The company's robust portfolio of feature-rich, easy-to-use products enables service providers to deliver premium voice, video, data and next-generation digital multimedia services quickly, reliably, and cost-effectively. Based in San Jose, California, Sunrise Telecom distributes its products through a direct sales force and a global network of sales representatives and distributors. For more information, visit http://www.sunrisetelecom.com.

SOURCE Sunrise Telecom Incorporated