SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 16099 / March 30, 1999 SECURITIES AND EXCHANGE COMMISSION v. VLADISLAV STEVEN ZUBKIS., et al., 97 Civ. 8086 (JGK/KNF), U.S.D.C., S.D.N.Y. The Securities and Exchange Commission ("Commission") announced that Judge John G. Koeltl of the United States District Court for the Southern District of New York entered a final judgment granting a permanent injunction against Stella Bella Corporation, U.S.A., now known as International Brands, Inc. ("Stella Bella"), on March 26, 1999. The judgment, to which Stella Bella consented, permanently enjoins and restrains Stella Bella from violating certain provisions of the federal securities laws. Stella Bella is enjoined from committing fraud in connection with the purchase or sale of securities in violation of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. Stella Bella is also enjoined from selling unregistered securities in violation of Sections 5(a) and 5(c) of the Securities Act of 1933. The Commission filed its complaint on November 5, 1997. The Commission’s complaint alleged that from 1994 through at least 1996 Stella Bella sold its common stock to over 1,100 investors throughout the United States. Stella Bella sold its common stock to investors using materially false and misleading information about its finances, projected sales and revenues, and operations. For example, Stella Bella issued press releases and promotional materials that predicted substantial growth in Stella Bella’s sales, revenues, and profits when no factual basis to support such claims existed. Stella Bella also sold its common stock when there was no registration statement in effect. Stella Bella consented to the entry of the final judgment without admitting or denying the allegations of the complaint. Stella Bella Corporation, U.S.A., now known as International Brands, Inc., is a publicly traded corporation (National Association of Securities Dealers Over-the-Counter Bulletin Board: INBR; formerly traded as SBAM). Based in San Diego, California, Stella Bella manufactures and sells at wholesale and retail gourmet coffee and other products. Litigation is continuing against the remaining defendants, Vladislav Steven Zubkis, Z 3 Capital Corporation, and Mark Scialdone. (See, Litigation Release No. 15552, November 5, 1997 for more details.)