==========================================START OF PAGE 1======

                SECURITIES AND EXCHANGE COMMISSION
                         WASHINGTON, D.C.

Litigation Release No. 15221 / January 21, 1997       

SECURITIES AND EXCHANGE COMMISSION V. CHARLES BRUMFIELD, JOSEPH
BRUMFIELD, ROBERT ALLEN, WILLIAM MYLETT, JOSEPH PENNA, JOSEPH
CUSIMANO, ALFRED VOLPE, JAMES GALANTE, THOMAS ALGER, JOHN
O'BRIEN, LAWRENCE FRIEDMAN, ROBERT FLANAGAN, THOMAS FLANAGAN,
SHARON SEIDEN, WARREN SMITH, JOHN LYNCH, AND ALBERT BRODY, United
States District Court for the Southern District of New York, Civ.
Action No. 95-9283 (JES).
 
     On January 14, 1997, the United States District Court for
the Southern District of New York entered Final Judgments of
Permanent Injunction and Other Equitable Relief against Thomas
Alger and William Mylett for violations of the federal securities
laws in connection with trading in one or more of four AT&T
acquisition targets -- Paradyne Corporation, NCR Corporation,
Digital Microwave Corporation, and Teradata Corporation -- while
in possession of material, non-public information.  Without
admitting or denying the allegations in the Complaint, Alger
consented to the entry of an injunction, disgorgement of his
profits of $76,744.34, plus prejudgment interest, and a civil
penalty of $76,744.34; and Mylett consented to the entry of an
injunction and a judgment requiring him to pay disgorgement of
$369,434.52, plus prejudgment interest, but waiving payment of
all but $68,000, based upon his demonstration of inability to
pay.     

     The Commission's Complaint, filed on October 31, 1995, 
alleges that during the period from December 1988 to late 1991,
Alger, who worked in the Human Resources Department of AT&T,
received material, non-public information from his friend and
colleague Charles Brumfield (who was at the time a Vice President
in AT&T's Human Resources Department) about AT&T's acquisition
plans regarding four target companies.  Alger traded in the
securities of Paradyne while in possession of the non-public
information, tipped other defendants regarding AT&T's plans to
acquire NCR, Digital, and Teradata, and arranged for several of
his tippees to trade in the securities of the target companies
for him and make payments of profits back to him, which Alger
then divided between himself and Brumfield.  

     Alger, who cooperated with the Government in a related
criminal case, pled guilty earlier to one count of conspiracy to
commit securities fraud, wire fraud, and obstruction of agency
proceedings and was sentenced to three years probation, 300 hours
of community service, and a $1,000.00 fine.  

     The Commission's Complaint also alleges that during the
period of December 1988 to the spring of 1991, Mylett received
==========================================START OF PAGE 2======

material, non-public information from his friend Charles
Brumfield about AT&T's acquisition plans regarding Paradyne, NCR,
and Digital, traded in the securities of these three companies
while in possession of non-public information, and made payments
back to Charles Brumfield from the profits he obtained.  

     Mylett earlier pled guilty in a related criminal case to one
count of conspiracy to commit securities fraud, wire fraud, and
obstruction of agency proceedings and was sentenced to five
months in prison, five months home detention, and two years
supervised release.  

     Litigation with respect to the remaining defendants is
continuing.

Related Releases:   L.R. 14706, L.R. 14779, L.R. 14956, L.R.
15180