UNITED STATES SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 15389 / June 19, 1997 Accounting and Auditing Enforcement Release No. 925 / June 19, 1997 SECURITIES AND EXCHANGE COMMISSION v. MICHAEL HUMPHRESS, United States District Court for the Northern District of California, Civil Action No. C97-2288-SI-ENE; UNITED STATES OF AMERICA v. MICHAEL HUMPHRESS, United States District Court for the Northern District of California, Criminal Action No. CR97-40111 DLJ. The Securities and Exchange Commission and the Office of the United States Attorney for the Northern District of California today announced the filing of criminal and civil actions with the United States District Court for the Northern District of California against Michael Humphress, former Senior Vice President, Worldwide Sales at Media Vision Technology, Inc. (now known as Aureal Semiconductor)("Media Vision"). Humphress has settled both the civil and criminal actions, which were filed today in the Northern District of California. As part of the settlements, he has agreed to cooperate with authorities in their continuing investigations into securities fraud at Media Vision in 1993 and 1994. The SEC Complaint alleges that Humphress, along with other senior Media Vision officers, engaged in conduct designed to overstate the sales growth and profitability of Media Vision in 1993 and 1994 to the investing public. The complaint alleges that Humphress violated the antifraud and internal accounting controls provisions of federal securities laws by: (1) authorizing the shipment of unordered product for the purpose of inflating revenues; (2) avoiding recognition of product returns; and (3) misrepresenting to auditors the collectibility of outstanding accounts. Humphress has consented to the entry of an order in the SEC action, without admitting or denying the allegations of the complaint: (1) enjoining him from future violations of Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934 and Rules 10b-5, and 13b2-2 thereunder; (2) requiring him to pay $200,000 in Remedies Act penalties; and (3) prohibiting him from serving as an officer or director of any public company. Pursuant to a plea agreement with the U.S. Attorney's Office, Humphress has agreed to plead guilty to one count of wire fraud, which carries a potential prison sentence of five (5) years, a $250,000 fine, and restitution to the victims of the fraud. ======END OF PAGE 1======