First Act Awarded More Than $20 Million in Jury Verdict Against Brook Mays Music

First Act Awarded More Than $20 Million in Jury Verdict Against Brook Mays Music

Jury Cites False Advertising, Disparagement, and Business Interference

BOSTON, Dec. 5 /PRNewswire/ -- A jury verdict issued Dec. 2, 2005 in the United States District Court, District of Massachusetts (Civil Action No. 03- 02120-EFH), regarding a civil lawsuit filed in 2003 by First Act Inc. against Brook Mays Music Company, Inc. of Dallas, Texas, found Brook Mays liable for making false advertising statements about First Act that materially deceived consumers and band directors; that Brook Mays "made a false statement of fact that disparaged" First Act's products; and that Brook Mays "intentionally and purposefully interfered" with First Act's contracts and business relationships.

The eight-member jury unanimously ruled in favor of First Act and determined that the Company should be compensated $20.7 million in damages as a result of Brook Mays' actions.

First Act filed the civil action in 2003 after Brook Mays launched a smear campaign to combat First Act's distribution channels and discourage people from buying, servicing, or keeping First Act instruments. Judge Harrington issued a preliminary injunction in March 2004 prohibiting any further distribution of the false advertising statements by Brook Mays. First Act markets high quality musical instruments at affordable prices to customers of every socioeconomic level. Brook Mays is a musical instrument retailer and rental company.

First Act's Chairman of the Board, Bernard Chiu, believes the ruling not only discourages unfair business practices in the music industry, but also helps reaffirm the rights of every potential music student to choose to own a high quality instrument. "Buying and learning to play a well-crafted musical instrument should be a proud opportunity for everyone, not just a privileged option for some," he said. Chiu noted that the Company's mission to make music learning accessible and affordable for everyone was at the core of the litigation. "We are pleased with the court decision and will continue to offer our exceptional music products and service through competitive pricing and distribution," he said, adding, "The verdict is a clear win for every potential music student and for the most fundamental principles of providing great value to consumers."

According to First Act President and CEO Mark Izen, the ruling helps protect the Company's successful business model, which channels well-made musical instruments to retailers, suppliers, and customers under a comprehensive network. "Our approach enables band directors to provide reliable, high-precision instruments to their students, and for the same students to own instruments that provide years of value," he said. Paul Weller, Band Director and Director of Band and Orchestra for First Act added, "At a time when school systems nationwide face increasingly tightening budgets, this verdict is critical in helping to keep music programs alive for students."

Lee Bromberg and Julia Huston of Bromberg & Sunstein LLP represented First Act in this litigation.

About First Act:

First Act Inc., based in Boston, MA, is a premier musical products Company. First Act's entrepreneurs, musicians, and artisans develop superior musical instruments that are made to be heard and crafted to last.

First Act's Studio for Artists designs and builds custom guitars for professional musicians in a progressive, sophisticated in-house studio. First Act's Concert Series(TM) offers band students a comprehensive range of instrument choices while First Act's line for teens and adults includes a wide range of guitars, drums, hand percussion, and accessories. First Act's Discovery(TM) line of instruments gives young children a musical head start.

Source: First Act Inc.

CONTACT: Jeff Walker of First Act Inc., +1-617-26-7920,
jwalker@firstact.com

Web site: http://www.firstact.com/

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