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                SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C.

LITIGATION RELEASE NO. 15342 / April 21, 1997

SECURITIES AND EXCHANGE COMMISSION v. TELLUS INDUSTRIES, INC. AND
GLEN E. BURKE, Civil Action No. 96CV-00712 (D.D.C.) (filed April
16, 1996)

     On April 15, 1997, the U.S. District Court for the District
of Columbia entered default judgments against Tellus Industries,
Inc. ("Tellus") and Glen E. Burke ("Burke").  The Honorable
William B. Bryant entered judgments enjoining Tellus from
violating Sections 10(b) and 13(a) of the Securities Exchange Act
of 1934 ("Exchange Act") and Rules 10b-5, 12b-20, 13a-1 and 13a-
13 thereunder, and enjoining Burke from violating Section 10(b)
of the Exchange Act and Rule 10b-5 thereunder.  The Court also
ordered Burke to pay a $300,000 civil penalty.

     The Commission's complaint alleged that Tellus and Burke
knowingly disseminated materially false and misleading
information to investors, in the form of Annual and Quarterly
Reports filed with the Commission and at least one publicly
disseminated press release that failed to accurately disclose law
enforcement actions brought by the states of Wisconsin, Nevada,
California, Minnesota and Idaho, and the seizure of records by
the United States Postal Service.  The Commission's complaint
alleged that Burke personally profited from the fraud by
receiving approximately $1.5 million in salary, loans and other
payments from Tellus during the period of the false disclosures.