SECURITIES AND EXCHANGE COMMISSION
                                   Washington, D.C.

                                  September 11, 1997

     LITIGATION RELEASE NO. 15485 / September 11, 1997 

     ACCOUNTING AND AUDITING ENFORCEMENT 
     RELEASE NO.  956 / September 11, 1997

     SECURITIES AND EXCHANGE COMMISSION v. SCIENTIFIC SOFTWARE-INTERCOMP, INC.,
     Civil Action No. 97-CV-2091 (JGP) (D.D.C.) (filed September 11, 1997)

          On September 11, 1997, the Securities and Exchange Commission filed
     and simultaneously settled a financial fraud action in the United Stated
     District Court for the District of Columbia against Scientific Software-
     Intercomp, Inc. (SSI), a Denver, Colorado oil and gas software company
     whose shares formerly traded on NASDAQ, seeking a permanent injunction and
     other relief.

          The Commission's complaint alleges that during 1993, 1994 and 1995,
     SSI materially overstated its revenue and earnings by backdating or
     misdating contracts, booking revenue without contracts, overaccruing
     project revenues and providing confidential side letters modifying payment
     obligations.  As a result of these practices, the complaint alleges that
     SSI reported false and misleading information in its Annual Reports for
     fiscal 1993 and 1994, its Quarterly Reports for the first three quarters of
     fiscal 1994 and the first quarter of fiscal 1995.  In addition, SSI
     conducted an offering of 2 million shares of common stock from which it
     obtained more than $8 million on a registration statement that materially
     overstated revenue, net income and earnings per share for the 1993 fiscal
     year and the first quarter of 1994.  The complaint further alleges that SSI
     filed false Current Reports on Form 8-K in July and August 1995 reporting
     the resignation of its auditors.  By engaging in such conduct, the
     complaint alleges that SSI violated Section 17(a) of the Securities Act of
     1933, and Sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the
     Securities Exchange Act of 1934 and Rules 10b-5, 12b-20, 13a-1, 13a-11 and
     13a-13 thereunder.

          Specifically, the complaint alleges that, beginning in at least 1993,
     SSI recognized revenues on contracts to Value Added Resellers ("VAR"s) that
     included confidential side-letters either excusing payment to SSI until the
     VARs received payment from a third-party, or rendering the contract
     ineffective and cancelable until a specified future event, normally the
     sale of SSI's software to the VAR's customer.  In addition, the complaint
     alleges that SSI backdated contracts and shipping documentation, booked
     contracts without written contracts, and overaccrued

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     project revenues in the company's Pipeline and Facilities Division in
     Houston, Texas.

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          Without admitting or denying the allegations of the complaint, SSI
     consented to the entry of a permanent injunction prohibiting future
     violations of the antifraud, reporting, internal controls and books and
     records provisions of the Securities Act and Exchange Act, and ordering SSI
     to restate its financial statements for the years ending December 31, 1993,
     1994 and 1995.

          The Commission's investigation is continuing.













































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