UNITED STATES SECURITIES AND EXCHANGE COMMISSION

           LITIGATION RELEASE NO.  15863  / August 31, 1998

           SECURITIES AND EXCHANGE COMMISSION v. AMERICAN AUTOMATION,  INC., et
           al.
           3:98-CV-1596-D, USDC, ND/TX (Dallas Division)

                On August 28, 1998, the Securities and Exchange Commission filed a
           first amended complaint in federal district court, Dallas, Texas,
           adding Jayne R. Roose as a defendant in its previously filed civil
           action.  The Commission alleges that Roose acted in concert with
           defendants Kendyll R. Horton, Hazel A. Horton and Merle B. Gross in the
           fraudulent offer and sale of American Automation, Inc. stock  in which
           $4.5 million was raised from over 1400 investors in several states. In
           fact, according to the first amended complaint, Roose and fellow
           defendant Gross continued their fraudulent activity after the
           Commission filed the civil action and obtained a temporary restraining
           order prohibiting future fraudulent conduct.

                The first amended complaint alleges that the defendants told
           investors that American Automation would develop and place automated
           insurance vending machines in high traffic areas, and that projected
           profits would be almost $100 million by the end of its third year of
           operation; apparently, however, no automated vending machines have been
           sold and American Automation's only source of revenue has come from
           investors' funds.  Additionally, according to the first amended
           complaint, the defendants used investor funds to pay for their personal
           expenses, and for business expenses unrelated to American Automation's
           operations.

                Roose is charged in the first amended complaint with violations of
           the securities registration and antifraud provisions of the federal
           securities laws found in 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.  On July 10, 1998, a temporary
           restraining order was issued against American Automation and the
           individual defendants prohibiting violations of the federal securities
           laws and freezing the company's and the individual defendants'  assets.
           The first amended complaint seeks to extend this temporary restraining
           order to Roose, to permanently enjoin Roose from future violations of
           the federal securities laws, an order requiring disgorgement of all
           wrongfully obtained profits, with prejudgment interest, and a civil
           money penalty.