SECURITIES AND EXCHANGE COMMISSION Washington, D.C. Litigation Release No. 15750 / May 20, 1998 SEC v. MARY ANN SHANK, KENNETH R. ROOP, DONALD M. SCHWARTZ, and MILDRED SHANK, Civil Action No. C-96 20757 (JW)(EAI) (N.D. Cal.) The Securities and Exchange Commission announced today that on May, 18, 1998, the Honorable James Ware, United States District Judge, entered Final Judgments against defendants Mary Ann Shank, Kenneth R. Roop, and Donald M. Schwartz. Each of the defendants consented to the entry of the Final Judgments without admitting or denying the allegations contained in the Commission's Complaint. The entry of the Final Judgments ends the Commission s case concerning insider trading in Affymax N.V. stock as to all defendants. The Final Judgment as to Shank (i) permanently restrains and enjoins her from committing future violations of the anti-fraud provisions of the federal securities laws and (ii) orders her to pay disgorgement in the amount of $147,500, which represents the gains of another individual who traded in Affymax N.V. stock, plus pre-judgment interest thereon in the amount of $32,721, but waives payment of such amounts based upon Shank's demonstrated inability to pay. Neither Shank nor Roop themselves bought or sold any Affymax securities. The Final Judgment as to Roop (i) permanently restrains and enjoins him from committing future violations of the anti-fraud provisions of the federal securities laws and (ii) orders him to pay disgorgement in the amount of $151,100, plus pre-judgment interest thereon in the amount of $33,520, but waives payment of such amounts based upon Roop's demonstrated inability to pay. The Final Judgment as to Schwartz (i) permanently restrains and enjoins him from committing future violations of the anti-fraud provisions of the federal securities laws, (ii) orders him to pay disgorgement in the amount of $83,625, plus pre-judgment interest thereon in the amount of $22,405, and (iii) orders him to pay a civil penalty of $83,625. The Commission's Complaint, which was filed on September 12, 1996, alleged that Shank passed material, nonpublic information relating to a proposed tender offer for Affymax stock, which she obtained while working on the transaction as an executive assistant to the general counsel of an Affymax subsidiary, to Roop, and to her mother. According to the Complaint, Roop tipped his brother-in-law, who was the subject of a separate Commission action, and a friend and business associate, defendant Donald Schwartz, who in turn allegedly passed information relating to the tender offer to a close friend of his. The Commission alleged that by engaging in such conduct, the defendants violated Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder. ======END OF PAGE 1====== The Commission's investigation of trading in Affymax securities is continuing. Related Release: L.R. 15040 ======END OF PAGE 2======