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                SECURITIES AND EXCHANGE COMMISSION
                         WASHINGTON, D.C.

Litigation Release No. 15167 / November  26, 1996

Securities and Exchange Commission v. American Education
Corporation
Case No. 96-CV-02664 (D.D.C.)  (filed November 26, 1996)

     On November 26, 1996, the Commission filed a complaint in
the United States District Court for the District of Columbia
against American Education Corporation.  The complaint alleges
that American, a Oklahoma corporation engaged in the development
and sales of educational systems hardware, failed to make
available to the investing public current and accurate
information about its financial condition and results of
operation through the filing of periodic reports with the
Commission as required by the Securities Exchange Act of 1934
("Exchange Act").  Specifically, the complaint alleges that
American has not filed its Annual Reports on Form 10-K for the
fiscal years ended December 31, 1995, 1994 and 1993 and eight
Quarterly Reports on Form 10-Q for the fiscal quarters ended
March 31, and June 30, 1996, and March 31, June 30 and September
30, 1995 and 1994, and seventeen Notifications of Late Filing
with respect to its delinquent reports and failed to timely file
three Annual Reports on Form 10-K and four Quarterly Reports on
Form 10-Q.  The Commission seeks to compel American to file
certain delinquent periodic reports and to enjoin American from
further violations of Section 13(a) of the Exchange Act of 1934
and Rules 12b-25, 13a-1 and 13a-13 thereunder.  Simultaneously
with the filing of the Commission's complaint, American consented
to the entry of a Final Judgment granting the relief sought by
the Commission and admitted that it had not filed and had filed
late the periodic reports as described above.