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Order Granting Defendants’ Motion for Protective Order and Motion to Quash

Defendants’ Motion for Protective Order and Motion to Quash came on regularly for hearing on April 14,1997 at 9:00 a.m. before Magistrate Judge Anthony J. Battaglia. Bill Grauer appeared on behalf of all defendants; Jan Adler, Sallie Blackman, and Jennifers Wells appeared on behalf of plaintiff. On behalf of all purchasers of the common stock of Próxima Corporation (“Próxima”), plaintiffs’ allege that defendants violated federal securities laws by making false and misleading statements to investors about the development of a new product by Próxima. Defendants’ Motion for Protective Order and Motion to Quash is based on the Private Securities Litigation Reform Act of 1995 (“the Reform Act”), which provides for an automatic stay of discovery in private securities lawsuits during the pendency of a motion to dismiss.

In an order filed March 14, 1997, Judge Rudi M. Brewster granted in part and denied in part defendants’ Motion to Dismiss and allowed plaintiffs sixty days to amend their complaint. Shortly thereafter, on March 26, 1997, defendants filed a Motion for Reconsideration, a Motion for Certification of…