Roger Bernhammer

SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 16637 / July 27, 2000

Securities and Exchange Commission v. Roger Bernhammer, (U.S.D.C.) (D.N.J.) Civil Action No. 00-3338

SEC FILES AND SETTLES INSIDER TRADING CASE

The Securities and Exchange Commission announced that on July 10, 2000 it filed a civil injunctive action alleging illegal insider trading before a November 10, 1998 announcement that Roanoke Electric Steel Corp. would make a tender offer for the outstanding shares of Steel of West Virginia, Inc. at a price of $10.75 per share. The Complaint alleges that on November 4, 1998, defendant Roger Bernhammer, of Hasbrouck Heights, New Jersey, learned of the then proposed tender offer in the course of his employment at SWVA's transfer agent and that in breach of a duty of trust and confidence owed to his employer, he purchased 500 shares of SWVA common stock, thereby obtaining illegal profits of $2,220. Bernhammer admitted the allegations of the Complaint and consented to the entry of a final judgment which permanently enjoins him from future violations of antifraud provision of the federal securities laws, orders him to disgorge $2,220 plus prejudgment interest and orders him to pay a civil penalty of $2,220.

The Commission acknowledges the assistance of NASD Regulation in this matter.