Wechsler Harwood Halebian & Feffer LLP Files Class Action Suit Against Homestore.com, Inc.

Wechsler Harwood Halebian & Feffer LLP ("Wechsler Harwood") today announced that a class action has been commenced in the United States District Court for the Central District of California on behalf of purchasers of Homestore.com, Inc. ("Homestore") (NASDAQ: HOMS) common stock during the period between May 3, 2000 and December 21, 2001 (the "Class Period").

The complaint charges Homestore and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Homestore provides an online marketplace for home and real estate-related information, products and services. On May 3, 2000, Homestore issued a release of its positive 1Q 00 results. The complaint alleges that as part of their effort to boost the price of Homestore stock, defendants misrepresented Homestore's true prospects in an effort to conceal Homestore's improper acts until they were able to sell at least $16 million of their own Homestore stock. In order to overstate revenues and assets in 1Q 2000, 2Q 2000, 3Q 2000, 4Q 2000, 1Q 2001, 2Q 2001 and 3Q 2001, Homestore violated Generally Accepted Accounting Principles and SEC rules by engaging in improper "roundtrip" transactions. These transactions had the effect of dramatically overstating revenues and assets. This came to an end (though unbeknownst to the public) in the Company's 3Q 2001 as the Company's main roundtrip partner stopped doing these transactions with the Company.

Following the release of the Company's 3Q 2001 results, the Company also slashed its revenue projections for 2002 from $563 million to $375-$425 million as a result of a material decline in its business with its main "roundtrip" partner. On this news the Company's shares plummeted by more than 50% the following trading day from $4.98 to close at $2.28. Then, on December 21, 2001 (after the close of the market), the Company partially admitted that its past accounting for its prior results was inaccurate. On this news the Company's shares were halted and have not traded since. Then, on January 2, 2002, defendants admitted that the Company's revenue for 2001 had been overstated by as much as $95 million. The defendants also admitted that additional material restatements "may follow," including a restatement of financial results for fiscal year 2000.

Plaintiff seeks to recover damages on behalf of class members.

If you are a member of the Class described above, and if you meet certain other legal requirements, you may, no later than February 25, 2002, move the Court to serve as a lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff."

The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. S 78u-4). You may move the Court to serve as lead plaintiff through counsel of their choice (and need not necessarily do so through plaintiff's counsel). (15 U.S.C. 78u-4(a)(3)). At this stage, providing information or communicating with counsel is unnecessary to participate in any recovery resulting from this litigation.

Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (http://www.whhf.com/) has more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:

   Wechsler Harwood Halebian & Feffer LLP
   488 Madison Avenue 8th Floor
   New York, New York  10022
   Phone: 877-935-7400 (Toll Free)

Patricia Guiteau, Wechsler Harwood Shareholder Relations Department: pguiteau@whhf.com.

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SOURCE: Wechsler Harwood Halebian & Feffer LLP

Contact: Patricia Guiteau of Wechsler Harwood Shareholder Relations
Department, +1-877-935-7400, pguiteau@whhf.com

Website: http://www.whhf.com/