If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from January 16, 2008 - or by March 16, 2008. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Reed Kathrein at 510-725-3000, or via e-mail at info@hbsslaw.com.

You can view a copy of the Complaint as filed online at www.hbsslaw.com/shor.htm. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.

The suit alleges defendants failed to conduct an adequate due diligence investigation into the company prior to the IPO and failed to reveal that the company was not operating according to plan or as reported in registration statements sent to the SEC. Shareholders paid over $6 million in combined fees to compensate the underwriters for conducting such an investigation which is a critical component that provides investors with important safeguards and protections. The suit alleges had the investigation been appropriately carried out misleading information would not have been given to investors and shares would not have been sold at artificially inflated prices. ShoreTel’s IPO raised gross proceeds of at least $86 million with more than 9 million shares of common stock made available.

On January 7, 2008 ShoreTel announced results for the second quarter of fiscal 2008 that were well below expected. Investors learned that fourth quarter results from 2007 would post revenues almost 20 percent lower than previous estimates. Additionally information regarding the Company’s inadequate internal controls, as stated in an IPO registration statement, became obvious to investors – information that should have come out in the company investigation. According to the complaint ShoreTel was already evidencing a deterioration across its product line at the IPO and in an effort to mask these problems defendants prematurely recognized revenues by pulling sales forward into earlier periods and by stuffing its distribution channel with excess products and inventory.

As a result of these findings ShoreTel stock fell over 50 percent in one trading day. Shares plummeted from more than $13.00 per share prior to trading day, to a close of $6.02 per share on January 7, 2008. ShoreTel also experienced exceptionally heavy trading volume with more than six million shares traded – more than 30 times the Company’s recent average daily trading volume.

The Complaint alleges that the defendants including ShoreTel, its entire board of directors, its chief financial officer and the underwriters involved in the IPO are each charged with violating sections of the Securities Act of 1933.

Hagens Berman Sobol Shapiro, a law firm with offices in Seattle, San Francisco, Los Angeles, Boston, Chicago and Phoenix, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Hagens Berman Web site (www.hbsslaw.com) has more information about the firm