Schiffrin & Barroway, LLP Announces That the Class Period in the Shareholder Action Filed Against Motive, Inc. Has Been Extended

29 November 2005

The following statement was issued today by the law firm of Schiffrin & Barroway, LLP: The Class Period for the class action lawsuit filed in the United States District Court for the Western District of Texas on behalf of all securities purchasers of Motive, Inc. (Nasdaq: MOTV) ("Motive" or the "Company") has been extended from April 21, 2005 to October 26, 2005, to June 25, 2004 to October 26, 2005. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com. The complaint charges Motive, Scott L. Harmon, and Paul M. Baker with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company improperly recognized $5.2 million in revenue from a licensing agreement, which materially inflated its revenue figures; (2) the Company's financial statements were presented in violation of Generally Accepted Accounting Principles ("GAAP"); and (3) that the Company lacked the necessary personnel and controls to issue accurate financial reports and projections. On October 4, 2005, after the close of the market, Motive announced that it expected core revenue for the third quarter of 2005, which excludes impact from business acquisitions, to be in the range of $15.5 million to $17.5 million, compared to core revenue of $23 million for the same period last year. In reaction to this announcement, the price of Motive stock fell dramatically, from $6.26 per share on October 4, 2005 to $4.01 per share on October 5, 2005, a one-day drop of $2.25 per share, or 35.94 percent, on unusually heavy trading volume. On October 27, 2005, Motive, prior to the opening of the market, issued a press release announcing financial results for the quarter ended Sept. 30, 2005, as well as the decision to restate its financial results for the quarters ended March 31, 2005 and June 30, 2005 and the six-month period ended June 30, 2005. In reaction to this announcement, the price of Motive stock fell, from $4.12 per share on October 26, 2005 to $3.66 per share on October 27, 2005, a one-day drop of $0.46 per share, or 11.17 percent, on unusually heavy trading volume. Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com If you are a member of the class described above, you may, not later than January 2, 2006 move the Court to serve as lead plaintiff of the class, if you so choose. 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." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action. CONTACT: Schiffrin & Barroway, LLP Darren J. Check, Esq. Richard A. Maniskas, Esq. 280 King of Prussia Road Radnor, PA 19087 1-888-299-7706 (toll free) or 1-610-667-7706 Or by e-mail at info@sbclasslaw.com

Source: PR Newswire

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