UNITED STATES SECURITIES AND EXCHANGE COMMISSION

      LITIGATION RELEASE NO. 15369 / May 21, 1997

      SECURITIES AND EXCHANGE COMMISSION v. NORMAN G. CORNELIUS, et. al.
      4:97-CV-379-Y, USDC, ND/TX (Fort Worth Division)

            The Securities and Exchange Commission  ("Commission") announced the filing of
      a complaint  on May 1,  1997, in United  States District  Court, Fort Worth,  Texas,
      against Norman G.  Cornelius ("Cornelius"),  Avalon Custom Homes,  Inc. ("ACH")  and
      Avalon Alliance Group, Inc. ("AAG") requesting the entry of  a temporary restraining
      order ("TRO") prohibiting the defendants from violating the antifraud and securities
      registration  provisions  of the  federal securities  laws.   The  complaint further
      requests an  asset freeze  and the  appointment of a  temporary receiver  to recover
      funds and assets for the benefit of those who invested with Cornelius, ACH,  AAG and
      seven  limited  liability companies  ("LCs")  allegedly  formed  and  controlled  by
      Cornelius.   The Commission's  application for a  TRO was heard  and granted  by the
      Honorable Terry  Means, United States District  Judge.  A hearing  for a preliminary
      injunction was held on  May 16, 1997, briefs are due on May  22, 1997 and a decision
      will be issued thereafter.

            The  Commission's  complaint  alleges that  Cornelius,  ACH  and AAG  violated
      Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Section 10(b) of the
      Securities Exchange Act of 1934, and Rule 10b-5 thereunder, in the offer and sale of
      promissory notes, common  stock and  preferred stock.   According to the  complaint,
      Cornelius  and  Avalon  raised  approximately $12  million  from  approximately  400
      investors  during the period from 1992 to  the present.  The Commission alleges that
      Cornelius,  ACH  and  AAG made  material  misrepresentations  and  omitted to  state
      material  facts to investors in connection with these offerings regarding: the risks
      associated with the investments, the uses  of investment funds, and the  commingling
      and  misappropriation of  funds  in past  offerings.   The  compliant also  includes
      allegations that Cornelius misappropriated a significant portion of the funds raised
      for unauthorized business and personal uses.

            The  Commission also seeks an  order permanently enjoining  Cornelius, ACH and
      AAG,  an order  requiring  disgorgement of  all  wrongfully obtained  profits,  with
      prejudgment interest, and an order assessing a civil money penalty.  One of the LCs,
      Avalon Mir/Vis, L.C.,  and two  other companies allegedly  controlled by  Cornelius,
      AvGroup  Ventures,  Inc. and  AvHomes,  Inc., are  named  as  defendants solely  for
      purposes of relief.













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