Diagnostic Professional Imaging Services, Inc.

LITIGATION RELEASE NO.18445 / November 5, 2003

SECURITIES AND EXCHANGE COMMISSION v. DIAGNOSTIC PROFESSIONAL IMAGING SERVICES, INC., et.al., 00 Civ. 4386 (NRB) (S.D.N.Y.)

On October 29, 2003, the Honorable Naomi Reice Buchwald, United States District Court Judge for the Southern District of New York, entered Final Consent Judgments against defendants Marat "Mark" Zayats ("Zayats") and Gregory Levin ("Levin"), thereby concluding this action. The judgments permanently enjoin Zayats and Levin from future violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5. Zayats and Levin were also enjoined from acting as officers or directors of any public company, and from participating in an offering of penny stock.

The Commission's complaint, filed on June 14, 2000, alleged that Zayats and Levin conducted a fraudulent offering of securities issued by defendants Diagnostic Professional Imaging Services, Inc. ("Diagnostic"), a magnetic resonance imaging company located in Brooklyn, New York, and Nationwide Medical Supplies, Inc. ("Nationwide"), a supplier of medical products located in Brooklyn, New York. The complaint alleges that Zayats and Levin, directly and indirectly, made material misrepresentations to investors concerning Diagnostic's and Nationwide's business prospects, plans for an initial public offering, and anticipated use of offering proceeds.

In a parallel criminal case brought by the United States Attorney's Office for the Southern District of New York, Zayats and Levin were both sentenced to three years probation and were both ordered to pay restitution of $2,072,000, of which $760,000 is related to the fraudulent schemes alleged in the Commission's complaint.

With the entry of the judgments against Zayats and Levin, the Commission has now obtained injunctive and other relief against all of the defendants named in the Commission's complaint through settlement or default. There are no other claims pending in this action.

For further information, see Litigation Releases Nos. 16589 (June 14, 2000) and 18138 (May 14, 2003).