==========================================START OF PAGE 1====== SECURITIES AND EXCHANGE COMMISSION Washington, D.C. SECURITIES AND EXCHANGE COMMISSION v. COMPARATOR SYSTEMS CORPORATION, ROBERT REED ROGERS, SCOTT HITT AND GREGORY ARMIJO, Civil Action No. 96-3856 (LGB) (JGx) (C.D. Cal.) Litigation Release No. 14979 / July 11, 1996 Accounting and Auditing Enforcement Release No. 801 / July 11, 1996 The U.S. Securities and Exchange Commission announced today that on July 9, 1996, the Honorable Lourdes G. Baird, United States District Judge, issued a preliminary injunction against defendants Comparator Systems Corporation, Robert Reed Rogers, and Gregory Armijo, prohibiting violations of the anti-fraud and other provisions of the federal securities laws, and continuing the existing freeze on the assets of the defendants Rogers and Armijo, subject to temporary allowances for living expenses. Defendants Comparator, Rogers, and Armijo stipulated to the entry of the preliminary injunction. On June 13, 1996, Judge Baird issued a preliminary injunction upon default against defendant Scott Hitt which prohibits Hitt from violating the anti-fraud and other provisions of the securities laws and continues the freeze on his assets. The Commission's investigation is continuing as to other issues concerning Comparator and trading in its securities. See also Litigation Release No. 14927 and Accounting and Auditing Enforcement Release No. 786, dated May 31, 1996.