SECURITIES AND EXCHANGE COMMISSION Washington, D.C. SECURITIES AND EXCHANGE COMMISSION v. TRUSTCAP FINANCIAL GROUP, INC., MATRIX INVESTMENT ADVISORS, INC., SECURITY FINANCIAL, INC., AND MATRIX CAPITAL MANAGEMENT, INC., Civil Action No. 1:97CV00513 (D.D.C.). Litigation Release No. 15436 / August 7, 1997 The Securities and Exchange Commission today announced that, on August 6, 1997, the Honorable Thomas A. Flannery, Senior United States District Judge, issued an order approving an interim distribution of funds to investors who had invested funds with two investment advisers: Matrix Investment Advisors, Inc. (Matrix) and Security Financial, Inc. (SFI). The Commission filed its complaint in this matter on March 13, 1997, alleging violations of the books and records provisions of the Investment Advisers Act of 1940, against Matrix; SFI; their holding company, Trustcap Financial Group, Inc.; and its recordkeeping subsidiary, Matrix Capital Management, Inc. The Court appointed a Special Agent on March 14, 1997 to, among other things, establish and implement a plan to return investor funds to Matrix's and SFI's clients. The Special Agent has identified approximately $11.2 million in funds available for distribution to Matrix and SFI investors. The Court's order and the Special Agent's interim distribution plan call for the Special Agent to distribute a total of approximately $5 million to Matrix and SFI investors at this time. With this interim distribution, and taking into account any prior withdrawals, each investor will have received at least fifty percent of the money he deposited with Matrix or SFI. Once the Special Agent is reasonably assured that all investor funds have been properly accounted-for, he intends to propose a plan of distribution for the remaining funds. The final distribution plan will be submitted to the Court for approval, with notice to all investors. The Commission's investigation of other potential violations of the federal securities laws, by the defendants and other persons or entities, in connection with this matter is continuing. See also Litigation Release No. 15297, dated March 17, 1997. ======END OF PAGE 1======