Law Offices of Howard G. Smith Encourages Investors Who Have Losses in Excess of $1 Million from Investment in STEC, Inc. to Inquire Before January 5, 2010, About Serving As Lead Plaintiff in the Securities Fraud Class Action Lawsuit

BENSALEM, Pa., Nov 14, 2009 (BUSINESS WIRE) -- Law Offices of Howard G. Smith, representing investors of STEC, Inc. ("STEC" or the "Company") (Nasdaq:STEC), announces a class action lawsuit in United States District Court on behalf of a class (the "Class") consisting of all persons or entities who purchased the securities of STEC between June 16, 2009 and November 3, 2009, inclusive (the "Class Period"). The class action lawsuit was filed in the United States District Court for the Central District of California.

The Complaint charges STEC and certain of the Company's executive officers with violations of federal securities laws. STEC designs, manufactures and markets enterprise-class solid-state drives for use in high performance storage and server systems, and high-density dynamic random access memory modules for networking, communications and industrial applications. The Complaint alleges that defendants knew or recklessly disregarded that their public statements concerning STEC's business, operations and prospects were materially false and misleading. Specifically, throughout the Class Period the defendants misrepresented and/or failed to disclose that: (1) the Company oversold its largest customer more inventory than it required; (2) as such, the Company overstated the demand for its ZeusIOPS SSD products; (3) the Company's subsequent revenue and financial results for the following year would be negatively impacted; and (4), as a result of the above, defendants' statements during the Class Period lacked a reasonable basis.

On November 3, 2009, STEC shocked investors when it announced that one of its largest customers -- which accounts for 90 percent of STEC's ZeusIOPS SSD business, and had placed a $120 million order for the second half of 2009 -- would carry 2009 inventory into 2010, placing STEC's 2010 first quarter results at risk. As a result of this news, shares of STEC declined $9.01 per share, or more than 38%, to close on November 4, 2009, at $14.14 per share, on unusually heavy trading volume.

The Private Securities Litigation Reform Act of 1995 ("PSLRA") requires the Court to appoint a "Lead Plaintiff" in this case to represent the Class. Any person or entity who suffered a loss as a result of purchasing STEC, Inc.

securities between June 16, 2009 and November 3, 2009, may ask the Court to be appointed as Lead Plaintiff, but must file a motion no later than the January 5, 2010 deadline.

If you wish to discuss this action or have any questions concerning this Notice, the role of Lead Plaintiff, or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G.

Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at [phone], Toll-Free at [phone], by email to [e-mail] or visit our website at http://www.howardsmithlaw.com.

SOURCE: Law Offices of Howard G. Smith CONTACT: Law Offices of Howard G. Smith Howard G. Smith, Esquire [phone] [phone] [e-mail] www.howardsmithlaw.com Copyright Business Wire 2009 -0- KEYWORD: United States

North America

Pennsylvania INDUSTRY KEYWORD: Technology

Data Management

Hardware

Professional Services

Legal SUBJECT CODE: Lawsuit