Current Class Period Includes Shareholders Who Purchased Shares Of C…

Current Class Period Includes Shareholders Who Purchased Shares Of Common Stock or Warrants Issued By Host America Corporation

COLCHESTER, Conn., Aug. 23– Scott + Scott, LLC announced that it filed a class action lawsuit on August 19, 2005, in the United States District Court for the District of Connecticut on behalf of purchasers of Host America Corp. (“Host America”) (NasdaqSC: CAFE) or (NasdaqSC: CAFEW) publicly traded securities during the period of July 12, 2005 and July 22, 2005 (the “Class Period”). Any shareholder may contact the firm for more information.
If you would like information about Scott + Scott’s Complaint or would like to discuss this action with an attorney, please contact the firm in Connecticut at 800/404-7770 (prior to 12:00 p.m. on the East Coast). Thereafter, you can speak with attorney Neil Rothstein, a Scott + Scott partner, at [email protected] (800/332-2259 or via cell 619/251-0887) or attorney Amy K. Saba at [email protected] (800/332-2259). Scott + Scott has offices in Connecticut, Ohio and California. The firm ( specializes in complex litigation including securities fraud and represents foundations, individuals, corporations and pension funds worldwide.

If you purchased Host America securities during the Class Period and sustained damages you may — no later than October 7, 2005 — move for lead plaintiff appointment. A lead plaintiff must meet certain requirements mandated by law and shareholders will only be proposed by Scott + Scott for this position upon direct consultation with the firm further than the signing of an initial document. Scott + Scott, LLC offers various advantages at no charge most importantly of which is trying to keep its many shareholders informed and involved.

The Complaint alleges Host America and certain of its officers and directors violated the Securities Exchange Act of 1934. Host America operates employee cafeterias and executive restaurants at corporations and develops energy conservation software products and systems.

The Complaint alleges that, during the Class Period, defendants made materially false and misleading statements regarding a purported agreement the Company had reached with Wal-Mart stores for installation of its LightMaster Plus on the fluorescent lighting system of ten Wal-Mart stores (as a first-phase roll-out). These statements were materially false and misleading because defendants knew, but failed to disclose: 1) that the Company’s relationship with Wal-Mart was limited to a test installation; 2) that Host America had no agreement for any subsequent installations in other Wal-Mart stores; and 3) as a result, defendants had no basis for stating that the test installation was a “first-phase roll-out” or that “the next phase will involve a significant number of stores.” In fact, defendants lacked any basis for stating that the Wal-Mart test installation was a “major event for our company.” Further, such test installations in the past had resulted in no future customer relationship and no actual purchases of the LightMasterPlus by the party solicited for the test demonstration.

These false statements caused Host America stock to skyrocket from a close of $3.12 per share on July 11, 2005, to an intra-day high of $16.88 per share on July 19, 2005, only one week later.

Then, on July 22, 2005, the Securities and Exchange Commission (“SEC”) halted trading in the Company’s shares amid concerns that the Company’s July 12 press release had been “misleading.” Prior to the halt in trading, Host America insiders sold millions of dollars worth of their personally-held Host America shares at artificially inflated prices.

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