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IN THE UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA TAMPA DIVISION IN RE SYKES ENTERPRISES, INC. SECURITIES LITIGATION Consolidated Civil Action Case No. 8:00-CV-212-T-26F THIS MATTER PERTAINS TO ALL CASES NOTICE OF PROPOSED SETTLEMENT OF CLASS ACTION, SETTLEMENT FAIRNESS HEARING, AND RIGHT TO SHARE IN SETTLEMENT FUND TO: ALL PERSONS AND ENTITIES WHO PURCHASED THE COMMON STOCK OF SYKES ENTERPRISES, INC. BETWEEN JULY 27, 1998 AND SEPTEMBER 18, 2000, INCLUSIVE. PLEASE READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY. YOUR RIGHTS MAY BE AFFECTED BY PROCEEDINGS IN THIS LITIGATION. IF YOU ARE A CLASS MEM- BER, YOU ULTIMATELY MAY BE ENTITLED TO RECEIVE BENEFITS PURSUANT TO THE PROPOSED SETTLEMENT DESCRIBED HEREIN. CLAIMS DEADLINE: CLAIMANTS MUST SUBMIT PROOFS OF CLAIM ON THE FORM ACCOMPANYING THIS NOTICE, POST MARKED ON OR BEFORE APRIL 9, 2003. NOTICE IS HEREBY GIVEN, pursuant to Rule 23 of the Federal Rules of Civil Procedure and an Order of the United States District Court for the Middle District of Florida (the Court ) dated November 20, 2002, that a hearing will be held before the Honorable Richard A. Lazzara, in the United States District Courthouse, 801 North Florida Avenue, #223, Tampa, Florida 33602, at 9:00 a.m., on March 7, 2003 (the Settlement Hearing ) to determine whether a proposed settlement (the Settlement ) of the above-captioned litigation (the Action ) as set forth in the Stipulation and Agreement of Settlement dated November 18, 2002 (the Stipulation ), is fair, reasonable and adequate and to consider the application of Plaintiffs counsel for attorneys fees and reimbursement of expenses. I. SUMMARY OF SETTLEMENT AND RELATED MATTERS A. Statement of Plaintiffs Recovery Pursuant to the Settlement described herein, a Settlement Fund consisting of $30 million in cash plus interest has been established. As discussed below, depending upon when during the Class Period shares were purchased, different levels of price inflation and, therefore, different levels of damages apply. The range of artificial inflation per share between July 27, 1998 and the close of trading on September 18, 2000 (the Class Period ) is estimated at between $.35 and $14.00 per share before deduction of Court-awarded attorneys fees and expenses and the costs of administering this Settlement. Each Class Member s distribution of the Settlement Fund will be governed by a Plan of Allocation, as approved by the Court. A detailed explanation of the Plan of Allocation appears in Section V of this Notice. Plaintiffs estimate that there were approximately 21.5 million shares bought during the Class Period by both institutional and non-institutional investors and held after the end of the Class Period. Based on different levels of disclosure in the market place, Plaintiffs believe that shares purchased during the Class Period were artificially inflated by amounts ranging from $.35 during the period of April 21, 1999 through July 26, 1999, and February 7, 2000 through September 18, 2000, to as much as $14 during the period from October 26, 1999 through January 31, 2000. Maximum recoverable damages are based on the amount of price inflation in Sykes stock at various points during the Class Period.

(For the maximum recoverable damages for the periods you purchased your shares, please refer to the Plan of Allocation at Section V herein.) Assuming that, in fact, 21.5 million shares were purchased and held through the end of the Class Period, Plaintiffs believe damages for those shares held through the end of the Class Period would be approximately $143,290,000 ( Retention Damages ). In addition to the Retention Damages described above, Plaintiffs believe that shares purchased during the Class Period and sold at a loss after certain disclosures commencing around April 21, 1999, have also been damaged and are entitled to participate in the Settlement. Plaintiffs believe approximately 2.8 million shares fit into this category, and that the damages for those shares, assuming sales at various points during the Class Period, would be approximately $14,600,000 ( In and Out Damages ). The total of Retention Damages and In and Out Damages are estimated to be approximately $158,500 million. The Plan of Allocation described herein (see Section V) attempts to set each Authorized Claimant s Recognized Claim based on the maximum recoverable damages on each purchase of Sykes common stock at certain times during the Class Period. The Plan of Allocation covers both Retention Damages and In and Out Damages. No allocation is made for those who recognized a profit on their purchases and sales during the Class Period. In addition, no allocation is made for Class Members who sold shares during the Class Period at higher levels of price inflation than when those shares were purchased. Plaintiffs estimate that, based on the damage model described herein, each authorized claimant will receive a gross recovery prior to deducting fees and expenses of not less than 18.9% of each Authorized Claimant s Recognized Claim per share under the Plan of Allocation. Assuming deduction of attorneys fees of approximately 24% and costs which will not exceed 1.75% of the Settlement Fund, Plaintiffs estimate that each Authorized Claimant will receive a net recovery, after fees and costs, of approximately 14% of Recognized Claims under the Plan of Allocation. For further information with respect to your Recognized Claim, please refer to the Plan of Allocation in Section V herein. B. Statement of Potential Outcome Of The Litigation The Plaintiffs and Defendants disagree as to both liability and damages. They do not agree on the amount of damages per share at various points during the Class Period that would be recoverable if Plaintiffs were to have prevailed on each claim alleged. The issues on which the parties disagree include, among other things: (1) whether the statements made were false or misleading or were material or otherwise actionable under the federal securities laws; (2) the extent to which the various matters that Plaintiffs allege were materially false or misleading influenced (if at all) the trading price of Sykes common stock during the Class Period; and (3) the amounts by which Sykes common stock were so influenced (if at all) during the Class Period. The Defendants deny that they are liable to Plaintiffs or the Class and deny Plaintiffs or the other members of the Class have suffered any damages as the result of the alleged wrongdoing. Plaintiffs believe the proof at trial would show that Sykes shares were artificially inflated by between $.35 and $14.00 at various points during the Class Period for total damages of approximately $158.5 million. Defendants disagree and assert that there is no causal link at certain times during the Class Period between the losses in Sykes stock values and any violations of the federal securities laws. In addition, the Defendants would have argued at trial that the decrease in the share price experienced by Sykes was attributable to other factors including a correction in the price of e-commerce stocks following a period of investor exuberance, and that damages would be, at most, $.96 to $2.25 per share for only a portion of the Class Period, for total damages of approximately $12-19 million. In this Action, as in any action, Plaintiffs Co-Lead Counsel recognized that there was a substantial risk that Plaintiffs and the Class might not have prevailed on any of their claims and contentions or would have only prevailed on some of their claims and therefore, would have recovered nothing or substantially less than the maximum amount. Plaintiffs Co-Lead Counsel believe that the proposed Settlement is in the best interests of the Plaintiffs and the Class. C. Statement of Attorneys Fees and Costs Sought Plaintiffs counsel have not received any payment for their services in conducting this Action on behalf of Plaintiffs and the other members of the Class, nor have they been reimbursed for their out-of-pocket expenditures. If the Settlement is approved by the Court, Plaintiffs counsel intend to apply for fees of up to 24% of the Settlement Fund or an average of approximately $.30 per damaged share, and for reimbursement of expenses incurred in connection with the prosecution of this Action not to exceed $525,000, or approximately $.02 per damaged share. 2

D. The Reasons For Settlement Plaintiffs believe that the proposed settlement is fair, reasonable and adequate and is in the best interests of the Class considering the amount of the Settlement and the immediacy of recovery to the Class. At the time this Settlement was reached, the parties were nearing trial. All discovery on the facts, including depositions, exchange of documents, and interrogatory responses, had been completed, and the parties had exchanged reports by their experts as to the propriety of Sykes accounting practices, and as to damages. The trial would involve difficult questions regarding intent, interpretation and application of Generally Accepted Accounting Principles ( GAAP ), particularly those governing revenue recognition and software sales. The amount of damages sustained by the class, if any, would also have been a contested issue at trial. As noted above, Plaintiffs estimated that Sykes shares purchased during the Class Period were damaged by a total of approximately $158.5 million, while the Defendants vigorously denied that there were any damages caused by the Defendants, but that any provable damages would have been, at most, $12-19 million. Accordingly, Plaintiffs decision to enter into the Settlement was made with extensive knowledge of the facts and circumstances underlying Plaintiffs claims and the strengths and weaknesses of those claims. In determining to settle the Action, Plaintiffs and Plaintiffs Co-Lead Counsel have evaluated the extensive discovery taken in the litigation and taken into account the substantial expense and length of time necessary to prosecute the litigation through trial, posttrial motions and likely appeals, taking into consideration the significant uncertainties in predicting the outcome of this complex litigation. Plaintiffs counsels submit that the Settlement described herein, which consists of all available insurance as well as a significant contribution from Sykes, confers very substantial benefits upon the Class. Based upon their consideration of all of these factors, Lead Plaintiffs and their counsel have concluded that it is in the best interest of Plaintiffs and the Class to settle the Action on the terms described herein. E. Identification of Plaintiffs Lawyers. Further information regarding the Action and this Notice may be obtained by contacting Co-Lead counsel for Plaintiffs and the Class: Michael J. Pucillo, Esq. John P. Coffey, Esq. Wendy H. Zoberman, Esq. Gerald Silk, Esq. Berman DeValerio Pease Bernstein Litowitz Berger Tabacco Burt & Pucillo & Grossmann LLP 515 N. Flagler Dr., Suite 1701 1285 Avenue of the Americas West Palm Beach, FL 33401 New York, NY 10019 (561) 835-9400 (212) 554-1400 II. BACKGROUND OF THE ACTION A. Beginning on or about February 1, 2000, a number of class action complaints were filed in the above Court concerning the publicly traded securities of Sykes (the Sykes Class Actions ). The Sykes Class Actions alleged violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the Exchange Act ), and Rule 10b-5 promulgated thereunder. The Court, on April 28, 2000, ordered two of these cases consolidated and on October 24, 2000 consolidated all pending actions (herein referred to as the Action ). By Order dated September 14, 2000, the Florida State Board of Administration and the Louisiana State Employees Retirement System were designated as Lead Plaintiffs pursuant to Section 21D(a)(3)(B) of the Exchange Act (as amended), and appointed the law firms of Burt & Pucillo, LLP and Bernstein Litowitz Berger & Grossmann LLP were appointed Co-Lead Counsel for the Plaintiffs and the Class. 1 B. The operative allegations in the Action are contained in the Consolidated Amended Class Action Complaint (the Complaint ), filed in the Action on or about November 3, 2000. C. The Complaint generally alleges, among other things, that during the period between July 27, 1998 and September 18, 2000, inclusive, (the Class Period ), Sykes materially misstated its financial results by recognizing revenue from several major transactions earlier than permitted by Generally Accepted Accounting Principles ( GAAP ). 1 Effective July 1, 2001, the firm of Burt & Pucillo, LLP merged and became Berman DeValerio Pease Tabacco Burt & Pucillo. 3

Specifically, the Complaint alleges that the Company recognized revenues from three software licensing transactions prior to executing a final written agreement and, as to two of those agreements, recognized revenue despite contingencies in the agreements which, under GAAP, precluded such recognition. Subsequently, Sykes restated certain of its previously reported results which had included improperly recognized revenue from these transactions. D. The Complaint further alleges that Lead Plaintiffs and the other Class Members purchased Sykes common stock during the Class Period at artificially inflated prices and were damaged as a result of Defendants dissemination of false and misleading statements regarding the Company s financial condition in violation of Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder. E. In the Complaint, Lead Plaintiffs sought monetary damages on behalf of themselves and all other members of the Class. The amount of monetary damages, if any, awardable to the Class would have been determined at trial. F. On or about May 7, 2001, the Court denied Defendants motion to dismiss the Complaint. On or about April 6, 2001, the Defendants Answer was filed denying the substantive allegations of wrongdoing in the Complaint, denying that Plaintiffs stated a cause of action against the Defendants, and denying that the Lead Plaintiffs and other members of the Class were damaged. G. The parties thereafter commenced fact discovery. Throughout the second half of 2001 and into September 2002 the parties engaged in extensive discovery. Over 210,000 pages of documents were produced and reviewed by the parties, several non-party witnesses were subpoenaed for documents and testimony, and over twenty-five depositions were taken. Both parties produced expert reports. H. On or about May 3, 2001, Lead Plaintiffs filed their motion for class certification. Subsequently, the depositions of representatives of the Lead Plaintiffs were taken. On September 27, 2001, Defendants filed their memorandum in opposition to the motion for class certification, challenging only the length of the Class Period. On November 16, 2001, the Court granted Lead Plaintiffs motion and certified, pursuant to Fed. R. Civ. P. 23(a) and 23(b)(3), a class consisting of all persons who purchased Sykes common stock during the Class Period. Excluded from the Class are Sykes, its subsidiaries and affiliates, the Individual Defendants and members of their immediate families, any entities in which any of the defendants has a controlling interest, Sykes officers and directors and the legal representatives, heirs, successors, affiliates or assigns of any of the foregoing excluded persons and entities. On or about February 12, 2002, the Court approved the proposed Notice of Pendency of Class Action (the Notice of Pendency ) to the Class. The Notice of Pendency was mailed to all Class Members who could be identified commencing on or about April 10, 2002, and was published over the PR Newswire on April 17, 2002. Any putative Class Member who wished to be excluded from the Class was required to file an exclusion request postmarked on or before May 22, 2002. Any Class Member who filed a request for exclusion in accordance with the requirements set forth in the Notice of Pendency shall be excluded and shall not participate in the Settlement. All other Class Members will be bound by the terms of the Settlement. I. A status conference was scheduled for September 27, 2002, at which conference counsel for the parties agreed to request a March 2003 date for the trial of this action. On September 26, 2002, the parties mediated the case for the second time in Miami, Florida, reached a settlement, and informed the Court of the settlement that evening. On October 2, 2002, the parties filed a Notice of Settlement with the Court. III. BACKGROUND OF THE SETTLEMENT The proposed Settlement described herein is the product of extensive arms-length negotiations between the parties and two mediation sessions for which Plaintiffs and Defendants each conducted an in-depth analysis of their respective positions which were set forth in their mediation statements prepared for the mediations. This Settlement was reached after final preparation for an agreed upon trial date was about to begin. As a result of their extensive discovery efforts, Plaintiffs counsel had a thorough understanding of the facts at issue in the Action. Among other things, Plaintiffs counsel contended that they could prove that Defendants unlawful accounting practices during the Class Period caused Sykes reported revenues and earnings to be overstated and thereby artificially inflated the price of Sykes common stock. They also contended that they could show that those practices were contrary to the Company s affirmative public statements regarding its accounting practices, and that throughout 4

the Class Period Defendants caused Sykes to report impressive financial results that met or exceeded analysts estimates while failing to reveal the true reason for the Company s strong financial performance its improper accounting practices. Plaintiffs also believe that they could establish Defendants knowing or reckless conduct in that, among other things,: Sykes accounting policies, practices and directives came directly from senior management who instructed subordinates to make post-hoc bookkeeping entries to make it appear as though Sykes had received millions of dollars in additional revenue when it had not, so that the Company could boast that it had met analysts expectations; that the supposed basis for recognizing these revenues that Sykes had an accounting policy which permitted it to book revenues from oral contracts is found nowhere in Sykes records, was never shared with the Company s outside auditors and said oral contracts were expressly disavowed by each of the customers that were supposedly parties to these oral contracts; and that Defendants repeatedly mislead the Company s outside auditors, hiding the three largest contracts in Company history from auditor scrutiny. With respect to causation and damages, Plaintiffs believe they could show that had Sykes properly recognized revenue during the appropriate periods, it would not have consistently met analysts expectations and its common stock would have traded at materially lower prices during the Class Period. Plaintiffs were prepared to submit expert testimony as to damages attributable to the improper accounting practices alleged. For their part, the Defendants contended that they had good defenses to both the liability and damages aspects of the Plaintiffs claims. The Defendants intended to show that a failure to apply GAAP does not amount to fraud; that the restatements involved the application of new, complex accounting principles; that with respect to the contracts at issue, Sykes followed its internal accounting procedures which had been approved by its outside auditors; and that the outside auditors failed to apprise Sykes of the intricate provisions of the new revenue recognition policies for recording software revenue. With respect to scienter, Defendants contended that their actions were inconsistent with any intent to defraud investors in that during the Class Period Defendants lost substantial sums as they retained their holdings of Sykes stock. With respect to causation and damages, Defendants intended to show that most of the stock price decline occurred as a result of the burst of the tech stock bubble following a period of investor exuberance. Defendants also intended to mount a challenge to Plaintiffs estimate of aggregate damages based upon Daubert v. Merrill Dow Pharmaceuticals, 509 U.S. 579 (1993), wherein the United States Supreme Court set out factors for lower courts to consider in determining the admissibility of an expert s theory or techniques. The amount of damages, if any, which Plaintiffs could prove was a matter of serious dispute, and the Settlement s use of a Recognized Claim formula for distributing the Settlement proceeds does not constitute a finding, admission or concession that provable damages could be measured by the Recognized Claim formula. No determination has been made by the Court as to liability or the amount, if any, of damages suffered by the Class, nor on the proper measure of any such damages. The determination of damages, like the determination of liability, is a complicated and uncertain process, typically involving conflicting expert opinions. The Settlement herein is providing an immediate and substantial cash benefit and avoids the risks that liability or damages might not have been proven at trial. The decision to enter into this Settlement was made with extensive knowledge of the facts and circumstances underlying Plaintiffs claims and the strengths and weaknesses of those claims. In determining to settle the Action, Plaintiffs Co-Lead Counsel have evaluated the discovery undertaken in the litigation, potential recoverable damages, and taken into account the substantial expense and length of time necessary to prosecute the litigation through trial, posttrial motions and likely appeals, taking into consideration the significant uncertainties in predicting the outcome of this complex litigation. Plaintiffs counsels believe that the Settlement described herein confers substantial benefits upon the Class. Based upon their consideration of all of these factors, the Lead Plaintiffs, two sophisticated institutional investors, and their counsel have concluded that it is in the best interest of Plaintiffs and the Class to settle the action on the terms described herein. Recognizing the uncertainty and the risk of the outcome of any litigation, especially complex litigation such as this, and the difficulties and risks inherent in the trial of such an action, Plaintiffs desire to settle the claims of the Class against Defendants on the terms and conditions described herein which provide substantial benefits to the Class. Co- Lead counsel for Plaintiffs and the Class deem such Settlement to be fair, reasonable and adequate to, and in the best interests of, the members of the Class. The Defendants have denied all averments of wrongdoing or liability in the Litigation and all other accusations of wrongdoing or violations of law. The Stipulation is not and shall not be construed or be deemed to be evidence or an admission or a concession on the part of any of the Defendants of any fault or liability or damages whatsoever, and the Defendants do not concede any infirmity in the defenses which they have asserted or intended to assert in the Action. 5

The Defendants, while continuing to deny all allegations of wrongdoing or liability whatsoever, desire to settle and terminate all existing or potential claims against them, without in any way acknowledging any fault or liability. THE COURT HAS NOT FINALLY DETERMINED THE MERITS OF THE PLAINTIFFS CLAIMS OR THE DEFENSES THERETO. THIS NOTICE DOES NOT IMPLY THAT THERE HAS BEEN OR WOULD BE ANY FIND- ING OF A VIOLATION OF THE LAW OR THAT RECOVERY COULD BE HAD IN ANY AMOUNT IF THE ACTION WERE NOT SETTLED. IV. TERMS OF THE SETTLEMENT A. In full and complete settlement of the claims which have or could have been asserted in this Action, and subject to the terms and conditions of the Stipulation, Defendants have deposited or caused to be deposited into an escrow account for the benefit of Plaintiffs and the Class $30,000,000 which has been earning interest for the benefit of the Class since November 2002. B. Pursuant to the Settlement, and on the Effective Date, Plaintiffs and the members of the Class on behalf of themselves, their heirs, executors, administrators, successors and assigns, and any persons they represent, release and forever discharge and shall forever be enjoined from prosecuting the Released and Settled Claims (defined below) against any of the Released Parties (defined below). C. Released and Settled Claims means any and all claims, demands, rights, causes of action or liabilities, of every nature and description whatsoever, whether based on federal, state, local, statutory or common law, or any other law, rule or regulation, including both known and unknown claims, as defined in California Civil Code 1542, that have been or could have been asserted in any forum by Plaintiffs or any of the Class Members, or the successors or assigns of them, in any capacity, against any of the Released Parties that arise out of or relate in any way to: (1) the purchase of Sykes securities by any Class Member during the Class Period; and (2) the allegations, transactions, facts, matters, or occurrences, representations or omissions involved, set forth or referred to in the Complaint. D. Released Parties means the Defendants (Sykes Enterprises, Inc., John H. Sykes, David L. Grimes, and Scott J. Bendert), and each of their past or present subsidiaries, successors and affiliates, officers, directors, employees, insurers, reinsurers, professional advisors, auditors (including Ernst & Young LLP and PriceWaterhouseCoopers LLC), attorneys, agents, and the legal representatives, heirs, successors in interests or assigns of the Defendants. E. If the Settlement is approved by the Court, all claims which have or could have been asserted in the Action against any of the Released Parties will be dismissed with prejudice as to all Class Members, and all Class Members shall be forever barred from prosecuting a class action or any other action arising out of wrongs which have been or could have been alleged in this Action against any Released Party. The Settlement will become effective at such time as Orders entered by the Court approving the Settlement shall become final and not subject to appeal (the Effective Date ). F. By operation of the Order and Final Judgment, upon the Effective Date of this Settlement, Lead Plaintiffs and the other Class Members on behalf of themselves, their heirs, executors, administrators, successors and assigns, and any persons they represent, shall covenant to refrain from instituting, commencing, or prosecuting, either directly, indirectly, representatively or in any other capacity, any and all claims, demands, rights, causes of action or liabilities, of every nature and description whatsoever, whether based in law or equity, on federal, state, local, statutory or common law, or any other law, rule or regulation, including both known claims and Unknown Claims, as defined in California Civil Code 1542, that have been or could have been asserted in any form by any Class Member, or the successors or assigns of any of them, whether directly, indirectly, representatively, or in any other capacity, against any of the Released Parties, which arise out of, or relate in any way, directly or indirectly, to or could have been asserted based upon the allegations or facts relating to this Action, including, without limitation, claims for negligence, gross negligence, negligent misrepresentation and breach of fiduciary duty. G. Pursuant to the Settlement, and on the Effective Date, Sykes and each Individual Defendant, on behalf of himself, his executor, administrator and the Released Parties, shall release and forever discharge each and every of the Released and Settled Defendant s Claims, and shall forever be enjoined from prosecuting any Released and Settled Defendant s Claims against any of the Lead Plaintiffs, other Class Members or their counsel. 6

H. Released and Settled Defendants Claims means any and all claims, demands, rights, causes of action or liabilities, of every nature and description whatsoever, whether based on federal, state, local, statutory or common law or any other law, rule or regulation, including both known and unknown claims, as defined in California Civil Code 1542, that have been or could have been asserted in any forum by the Defendants, the Released Parties or any of them or the successors or assigns of any of them against any of the Lead Plaintiffs, other Class Members or their counsel, which relate in any way to the institution, prosecution or settlement of the Action. I. The Defendants intend to seek an order from the Court (the Bar Order ) that would bar any person or entity from commencing, prosecuting or asserting claims (including derivative claims) against any Defendant that arise out of or relate in any way to the allegations in the Complaint. The Settlement is not contingent on the Court entering a Bar Order. J. Upon approval of the Settlement by the Court and upon satisfaction of the other conditions to the Settlement, the Settlement Fund will be distributed as follows: (1) to pay costs and expenses in connection with providing Notice to the members of the Class and administering the Settlement on behalf of the Class; (2) to pay Plaintiffs counsels attorneys fees and reimbursement of expenses, with interest thereon (the Fee and Expense Award ), if and to the extent allowed by the Court; (3) to pay the reasonable costs incurred in the preparation of any tax returns required to be filed on behalf of the Settlement Fund as well as the taxes (and any interest and penalties determined to be due thereon) owed by reason of the earnings of the Settlement Fund; and (4) subject to the approval by the Court of the Plan of Allocation, which is set forth below, the balance of the Settlement Fund (the Net Settlement Fund ), shall be distributed in accordance with the Plan of Allocation to Class Members who submit valid, timely Proofs of Claim ( Authorized Claimants ). Approval of the Settlement is independent from approval of the Plan of Allocation, or any award of counsel fees and costs. Any determination with respect to the Plan of Allocation or the award of counsel fees and costs will not affect the Settlement, if approved. Payment from the Settlement Fund made pursuant to and in conformity with the Plan of Allocation, in the event of Court approval, shall be final and conclusive. V. ALLOCATION OF SETTLEMENT PROCEEDS AMONG CLASS MEMBERS A. The Net Settlement Fund, as defined in Section IV, paragraph I above, shall be distributed pursuant to the following Plan of Allocation to Authorized Claimants who file timely, acceptable Proofs of Claim. B. Each Authorized Claimant shall be allocated a pro-rata share of the Net Settlement Fund based on his, her or its Recognized Claim compared to the total Recognized Claims of all Authorized Claimants. THE RECOGNIZED CLAIM IS NOT THE AMOUNT OF YOUR RECOVERY. YOUR ACTUAL RECOVERY WILL BE LESS. C. An Authorized Claimant s Recognized Claim shall be calculated based upon the following chart setting forth the six periods of artificial price inflation per share of Sykes common stock during the Class Period as determined by Plaintiffs damages expert and shall mean: 1. With respect to purchases of Sykes common stock during the Class Period, which an Authorized Claimant continued to hold as of the close of trading on September 18, 2000: the Recognized Claim shall mean the amount of artificial inflation per share which corresponds to the period on the chart below during which the shares were purchased, multiplied by the number of shares purchased. For example, the Recognized Claim per share for shares purchased on February 2, 2000 and held through the close of trading on September 18, 2000 would be $4.23 per share multiplied by the number of shares purchased and held on those dates. 2. With respect to purchases of Sykes common stock during the Class Period, which an Authorized Claimant sold during the Class Period: the Recognized Claim shall mean the difference between the amount of artificial inflation per share which corresponds to the numbered period on the chart below during which the shares were purchased and the amount of artificial inflation per share which corresponds to the period on the chart below during which the shares were sold, multiplied by the number of shares involved in the transaction. However, only transactions where the amount of artificial inflation per share during the period in which the shares were purchased is higher than the artificial inflation per share during the period in which the shares were sold will result in a Recognized Claim. For example, the Recognized Claim per share for shares purchased on February 2, 2000 and sold on September 18, 2000 shall be $3.88 ($4.23 less $.35), multiplied by the number of shares purchased and 7

sold on those dates. By way of further example, there would be no Recognized Claim for shares purchased on July 28, 1998 and sold on October 25, 1999, because the amount of artificial inflation per share at the time of sale was actually higher than the amount of artificial inflation per share at the time of purchase, meaning any decline in the value of the stock was attributable to something other than the alleged fraud. Also, transactions resulting in a gain shall not be included. Table Of Periods Of Alleged Artificial Inflation Within The Class Period Period Artificial Inflation Per Share through September 18, 2000 [1] 7/28/98 4/20/99 $ 3.19 [2] 4/21/99 7/26/99 $.35 [3] 7/27/99 10/25/99 $ 7.95 [4] 10/26/99 1/31/00 $ 14.00 [5] 2/1/00 2/4/00 $ 4.23 [6] 2/7/00 9/18/00 $.35 D. Note that the Recognized Claim is an amount that is used in determining the pro-rata amount of the Settlement Fund you will recover. YOUR ACTUAL RECOVERY WILL BE LESS THAN YOUR RECOGNIZED CLAIM. E. In determining Recognized Claims, brokerage commissions and all other transaction costs shall be excluded from the calculation. TRANSACTIONS RESULTING IN A GAIN SHALL NOT BE INCLUDED. With respect to Class Members who had multiple purchases and sales of Sykes common stock, Recognized Claims shall be determined using the first-in-first-out basis ( FIFO ) for both purchases and sales. F. Sykes common stock acquired during the Class Period by means of a gift, inheritance or operation of law, are not eligible to share in the Net Settlement Fund based on such acquisition unless the transferor or donor on such a transaction would have been entitled to share in the Net Settlement Fund based on his, her or its acquisition of Sykes common stock during the Class Period. If the transferor or donor submits a claim relating to his, her or its acquisition of such shares or options, then any claim submitted by the transferee or donee with respect to such shares or options will be rejected. VI. THE RIGHTS OF CLASS MEMBERS The Court has previously certified this Action to proceed as a class action. Class Members have the following rights pursuant to Rule 23(c)(2) of the Federal Rules of Civil Procedure: A. Class Members may share in the proceeds of the Settlement, provided that you submit an acceptable Proof of Claim, as outlined in Section VII below. B. Class Members will be represented by the Lead Plaintiffs and their counsel, unless you enter an appearance through counsel of your own choice at your own expense. You are not required to retain your own counsel, but if you do chose to do so, such counsel must file an appearance on your behalf on or before February 21, 2003, and must serve copies of such an appearance on the attorneys listed in Section IX of this Notice. C. Class Members may object to the Settlement, the Plan of Allocation or the attorneys fees and /or expense application. Any Class Member may appear in person or by counsel and be heard to the extent allowed by the Court in opposition to the fairness, reasonableness and adequacy of the Settlement, the Plan of Allocation or the application for an award of attorneys fees and reimbursement of expenses, by following the procedures outlined in Section IX below. 8

VII. FILING AND PROCESSING OF PROOFS OF CLAIM IN ORDER TO BE ELIGIBLE TO RECEIVE ANY DISTRIBUTION FROM THE SETTLEMENT FUND, YOU MUST COMPLETE AND SIGN THE ATTACHED PROOF OF CLAIM AND RELEASE FORM AND SEND IT BY PRE-PAID FIRST CLASS MAIL POST-MARKED ON OR BEFORE APRIL 9, 2003, ADDRESSED AS FOLLOWS: Claims Administrator Sykes Enterprises, Inc. Securities Litigation c/o Berdon LLP P.O. Box 9014 Jericho, NY 11753-8914 IF YOU DO NOT FILE A PROPER PROOF OF CLAIM FORM, YOU WILL NOT BE ENTITLED TO ANY SHARE OF THE SETTLEMENT FUND. IF YOU ARE A CLASS MEMBER, YOU WILL BE BOUND BY THE SETTLEMENT AND ORDER AND FINAL JUDGMENT OF THE COURT DISMISSING THIS LITIGATION, EVEN IF YOU DO NOT FILE A PROOF OF CLAIM. All Proofs of Claim must be submitted by the date specified by this Notice unless such period is extended by Order of the Court. Each Claimant shall be deemed to have submitted to the jurisdiction of the United States District Court for the Middle District of Florida with respect to his, her or its claim. VIII. EXCLUSION FROM THE SETTLEMENT Notice of the pendency of this Action as a class action was given to the members of the Class in April 2002. Class Members were notified of their right to exclude themselves by filing a request for exclusion postmarked on or before May 22, 2002. Persons and entities that filed requests for exclusion may not share in this Settlement. Class Members may no longer request exclusion from the Class at this time. IX. SETTLEMENT HEARING At the Settlement Hearing, the Court will determine whether to finally approve this Settlement and Plan of Allocation and Bar Order proposed by Defendants and dismiss the Action and the claims of the Class. The Settlement Hearing may be adjourned from time-to-time by the Court without further written notice to the Class. At the Settlement Hearing, any Class Member who has not properly filed a request for exclusion from the Class may appear in person or by counsel and be heard to the extent allowed by the Court in opposition to the fairness, reasonableness and adequacy of the Settlement, the Plan of Allocation, or the application for an award of attorneys fees and reimbursement of expenses, provided, however, that in no event shall any person be heard in opposition to the Settlement, Plan of Allocation, and, or counsels application for an award of attorneys fees and reimbursement of expenses and in no event shall any paper or brief submitted by any such person be accepted or considered by the Court, unless, on or before February 21, 2003, such person (a) files with the Clerk of Court notice of such person s intention to appear, together with a statement that indicates the basis for such opposition, along with any documentation in support of such objection, and (b) simultaneously serves copies of such notice, statement and documentation, together with copies of any other papers or briefs such person files with the Court, including the identity of any witnesses to be called and any exhibits to be offered in evidence, in person or by mail upon Plaintiffs Co-Lead Counsel: Michael J. Pucillo, Esq. John P. Coffey, Esq. Wendy H. Zoberman, Esq. Gerald Silk, Esq. Berman DeValerio Pease Bernstein Litowitz Berger Tabacco Burt & Pucillo & Grossmann LLP 515 N. Flagler Dr., Ste. 1701 1285 Avenue of the Americas West Palm Beach, FL 33401 New York, NY 10019 9

and upon Defendants counsel: Tracy Nichols, Esq. Mitchell E. Herr, Esq. Holland & Knight LLP 701 Brickell Ave., Suite 3000 P.O. Box 015441 Miami, FL 33101 Unless otherwise ordered by the Court, any Class Member who does not make his, her or its objection or opposition in the manner provided shall be deemed to have waived such objection. X. NOTICE TO BANKS, BROKERS OR OTHER NOMINEES A. If you purchased Sykes common stock during the Class Period as a nominee for the benefit of another, or were or are holding certificates of Sykes stock in your name as nominee for someone who purchased Sykes stock during the Class Period, you are directed within 10 business days from receipt of this Notice to either: (1) provide the names and addresses of such persons to: Claims Administrator Sykes Enterprises, Inc. Securities Litigation c/o Berdon LLP P.O. Box 9014 Jericho, NY 11753-8914 Telephone: (800) 766-3330 Fax: (516) 931-0810 Website: www.berdonllp.com/claims preferably on computer-generated mailing labels or, electronically, in MS Word or WordPerfect files (label size Avery # 5162, or in an MS Excel data table setting forth title/registration, street address and city/state/zip, in which case the beneficial owner will be sent a copy of the Notice and Proof of Claim and Release; or (2) request additional copies of this Notice, which will be provided to you free of charge, and within seven (7) days of receipt of those copies mail the Notice and Proof of Claim Form to the beneficial owners of the securities referred to herein. You may receive reimbursement for your reasonable and actual out-of-pocket disbursements incurred in timely providing notice of this Settlement in a manner that would not have been made but for this request. Reimbursement of such expenses will only be upon timely submission of an itemized statement to the Claims Administrator. If you choose to follow alternative procedure (b), the Court has ordered that you must, upon such mailing, send a statement to the Claims Administrator confirming that the mailing was made as directed. XI. FURTHER INFORMATION A. The pleadings and other records of the Class Action, may be examined and copied (at your expense) at any time during regular office hours at the Office of the Clerk, Sam M. Gibbons U.S. Courthouse, United States District Court, Middle District of Florida, 801 North Florida Avenue, #223, Tampa, Florida 33602. B. ALL INQUIRIES CONCERNING THIS NOTICE OR THE PROOF OF CLAIM FORM BY CLASS MEM- BERS SHOULD BE MADE BY CONTACTING THE CLAIMS ADMINISTRATOR, AS SET FORTH ABOVE. DO NOT CALL OR WRITE THE COURT OR THE OFFICE OF THE CLERK OF THE COURT OR DEFENSE COUN- SEL FOR INFORMATION OR ADVICE. Dated: December 10, 2002 CLERK OF THE COURT UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA 10