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                SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C.

Litigation Release No. 15155 / November 12, 1996

Accounting and Auditing Enforcement 
Release No. 854 / November 12, 1996

SECURITIES AND EXCHANGE COMMISSION v. KENDALL SQUARE RESEARCH
CORPORATION, HENRY BURKHARDT III, PETER APPLETON JONES, AND KARL
G. WASSMANN III, Civil Action No. 96-10869 (MLW) (D. Mass.)      


     The Securities and Exchange Commission announced today that
on October 31, 1996, the Honorable Mark L. Wolf, United States
District Judge, entered a Final Judgment against defendant Peter
Appleton Jones.  The Final Judgment (i) permanently restrains and
enjoins Appleton Jones from violating the anti-fraud, books and
records, and internal accounting controls provisions of the
federal securities laws; (ii) bars Appleton Jones from acting as
an officer or director of any public company for a period of ten
years; and (iii) orders Appleton Jones to pay a total of
$321,526, representing disgorgement of losses avoided through his
sale of Kendall Square Research Corporation ("KSR") common stock
and prejudgment interest thereon, but waiving payment of all but
$40,000 of that amount based on Appleton Jones' demonstrated
inability to pay a greater amount.  The Final Judgment
permanently restrains and enjoins Appleton Jones from violating
Section 17(a) of the Securities Act of 1933 and Sections 10(b)
and 13(b)(5) of the Securities Exchange Act of 1934 and Rules
10b-5, 13b2-1 and 13b2-2 thereunder.  Appleton Jones consented to
the entry of the Final Judgment, without admitting or denying the
allegations contained in the Commission's Complaint.

     Appleton Jones was the highest ranking sales executive of
KSR, a Massachusetts-based manufacturer of high performance
computer systems that was liquidated earlier this year in a
bankruptcy proceeding.  The Complaint, filed on April 29, 1996,
alleged that  Appleton Jones and the other defendants violated
the anti-fraud, periodic reporting, books and records, and
internal accounting controls provisions of the federal securities
laws.  Appleton Jones and the other individual defendants were
alleged to have caused KSR to issue materially false and
misleading financial statements for fiscal year 1992 and the
first two quarters of 1993, which overstated the Company's
revenues and earnings.  In addition, the Complaint alleged that
Appleton Jones sold KSR stock while in possession of material
nonpublic information regarding the Company's true financial
condition.
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      The two other individual defendants named in the Complaint,
Henry Burkhardt III, KSR's former president and chief executive
officer, and Karl G. Wassmann III, KSR's former chief financial
and accounting officer, consented to the entry of Final Judgments
against them at the time the Complaint was filed in April 1996,
without admitting or denying the allegations of the Complaint. 
Judge Wolf entered those Final Judgments on October 31, 1996. 
The Commission voluntarily dismissed its claims against KSR in
light of the Company's liquidation.

     In a related matter, the Commission today instituted an
administrative proceeding against Karl G. Wassmann III.  See
Exchange Act Rel. No. [ ]; Accounting and Auditing Enforcement
Release No. [ ] (November 12, 1996).  As part of his settlement
with the Commission in April 1996, Wassmann consented, without
admitting or denying the findings contained therein, to the entry
of an Order in this administrative proceeding, pursuant to Rule
102(e)(3)(i) of the Commission's Rules of Practice, permanently
denying Wassmann the privilege of appearing or practicing as an
accountant before the Commission, with the right to apply for
readmission after five years from the date of entry of the Order.