UNITED STATES SECURITIES AND EXCHANGE COMMISSION LITIGATION RELEASE NO. 15893 / September 22, 1998 SECURITIES AND EXCHANGE COMMISSION v. HALTON TECHNOLOGIES, LTD. No. 98-Civ-6634 (BSJ) (S.D.N.Y.) (September 18, 1998) COURT FREEZES PROCEEDS OF ALLEGED INSIDER TRADING BY HALTON TECHNOLOGIES, LTD., IN SECURITIES OF TELEDATA COMMUNICATIONS LTD. SEC, In Emergency Federal Court Action, Obtains Order Freezing About $300,000 In Profits From Trading In The Securities Of Teledata By Trader That Bought Shortly Before Acquisition Announcement The Securities and Exchange Commission today announced that the U.S. District Court for the Southern District of New York entered a Temporary Restraining Order late Friday against Halton Technologies, Ltd., temporarily prohibiting Halton from obtaining or disposing of proceeds from the sale of the securities of Teledata Communications Ltd., an Israeli firm whose stock trades on the Nasdaq market in the United States. The Commission's complaint alleges that Halton engaged in illegal insider trading shortly before the September 16, 1998 announcement that ADC Telecommunications, Inc., a Minnesota corporation, intended to acquire Teledata. According to the Commission's complaint, Halton is an Israeli entity located in the same city, Herzelyia, where Teledata is headquartered. The Commission alleges that on September 1 and 2, 1998, Halton, while in possession of material, non-public information about the acquisition, spent more than $450,000 to purchase a total of 225 Teledata call options and 45,000 shares of Teledata common stock through an account with CIBC Oppenheimer Corp. in New York. After ADC and Teledata announced their merger, Halton's investment rose in value by more than $300,000, or 66%. In the pending lawsuit, the Commission alleges that Halton engaged in illegal insider trading in violation of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. As relief, the Commission seeks a permanent prohibitory injunction, the disgorgement of all illegal profits, and the imposition of civil monetary penalties. The Court's Temporary Restraining Order prohibits the removal of any proceeds from the sale of Halton's Teledata securities for a 10-day period. In addition, the court's Order imposes an expedited discovery schedule and prohibits the defendants from destroying documents. The Commission acknowledges the assistance of the Chicago Board Options Exchange, and the National Association of Securities Dealers in this matter.