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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION


LITIGATION RELEASE NO. 15019 \ August 20, 1996

UNITED STATES OF AMERICA v. KARL L. DAHLSTROM, et al.
96-CR-157-ALL, USDC, SD/TX [Houston Division]

     The Securities and Exchange Commission ("Commission") and
the United States Attorney for the Southern District of Texas
announced that on August 14, 1996, a federal grand jury returned
a 16-count indictment charging Karl L. Dahlstrom ("Dahlstrom"),
Karla D. Dahlstrom, Hubert Leon Leopard, and Richard E. Lopez
with conspiracy, violating the securities and broker-dealer
registration provisions of the federal securities laws,
securities fraud, and wire fraud for their involvement in a
nationwide solicitation campaign for the purpose of selling
unregistered shares of Inferno Snuffers, Inc., ("ISI"), and
Inferno Engineering and Consulting, Inc. ("IEC"). If convicted,
each of the four could receive up to 10 years in prison and a $1
million fine.

     The criminal charges are based on the same activities
alleged in a civil injunctive action brought by the Commission on
September 30, 1992. On October 6, 1993, Dahlstrom consented to
the entry of a Final Judgment which enjoins him from future
violations of the anti-fraud provisions of the federal securities
laws. Previously, on July 9, 1993, the Court granted Partial
Summary Judgment against Dahlstrom and entered an Order of
Permanent Injunction enjoining him from future violations of the
securities registration and broker-dealer registration provisions
of federal securities laws.

     The Commission's complaint alleged that ISI and IEC,
operating under Dahlstrom's direction, were purportedly marketing
"Uni-Snuff", a product claimed to be useful in extinguishing and
suppressing fires, and the "Snuffer System", a method of
dispensing Uni-Snuff.
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KARL DAHLSTROM AND THREE OTHERS INDICTED 

     The Commission and the United States Attorney for the
     Southern District of Texas announced that on August 14,
     1996, a federal grand jury returned a 16-count indictment
     charging Karl L. Dahlstrom (Dahlstrom), Karla D. Dahlstrom,
     Hubert Leon Leopard, and Richard E. Lopez with conspiracy,
     violating the securities and broker-dealer registration
     provisions of the federal securities laws, securities fraud,
     and wire fraud for their involvement in a nationwide
     solicitation campaign for the purpose of selling
     unregistered shares of Inferno Snuffers, Inc., (ISI), and
     Inferno Engineering and Consulting, Inc. (IEC). If
     convicted, each of the four could receive up to 10 years in
     prison and a $1 million fine.

     The criminal charges are based on the same activities
     alleged in a civil injunctive action brought by the
     Commission on September 30, 1992. On October 6, 1993,
     Dahlstrom consented to the entry of a Final Judgment which
     enjoins him from future violations of the anti-fraud
     provisions of the federal securities laws. Previously, on
     July 9, 1993, the Court granted Partial Summary Judgment
     against Dahlstrom and entered an Order of Permanent
     Injunction enjoining him from future violations of the
     securities registration and broker-dealer registration
     provisions of federal securities laws.

     The Commission's complaint alleged that ISI and IEC,
     operating under Dahlstrom's direction, were purportedly
     marketing "Uni-Snuff", a product claimed to be useful in
     extinguishing and suppressing fires, and the "Snuffer
     System", a method of dispensing Uni-Snuff.[United States of
     America v. Karl L. Dahlstrom, et al., 96-CR-157-ALL, USDC,
     SD/TX] (LR-      )


PHILLIP W. OFFILL, JR
Trial Counsel
Fort Worth District Office