UNITED STATES SECURITIES AND EXCHANGE COMMISSION

     Litigation Release No.  15669    /  March 13, 1998

     SECURITIES AND EXCHANGE COMMISSION v. THOMAS EDWARD CAVANAGH, U.S.
     MILESTONE, ELECTRO-OPTICAL SYSTEMS CORP., GEORGE CHACHAS, THOMAS R.
     BROOKSBANK, WILLIAM N. LEVY, OPTIMUM FUND, AGIRA TRADING, CUSTOMER SAFETY,
     S.L., CAMBIARES, S.L., CONSTRUCCIONES SOLARIEGAS, S.L., THOMAS A. HANTGES,
     COSIMO TACOPINO ET AL.  98 Civil Action No. 1818  (S.D.N.Y.)

     The Securities and Exchange Commission announced today that it has filed an
     emergency lawsuit in federal district court to halt the unregistered and
     fraudulent sale and manipulation of the stock of Electro-Optical Systems
     Corporation ( EOSC )  by Thomas Cavanagh, U.S. Milestone, George Chachas,
     William N. Levy and the other defendants.   On the Commission s application
     the Court has ordered the defendants to immediately cease their fraudulent
     activities.  In addition, the Court has frozen the defendants  assets
     pending further litigation.   The Commission also announced that it has
     temporarily suspended trading in the securities of EOSC for a ten day
     period because of questions regarding the accuracy of statements, and
     material omissions, concerning the company.

     The Commission told the Court that the defendants had been conducting a
     fraudulent scheme to create a controlled market for the stock of EOSC in
     order to artificially inflate the price of the stock which they sold to
     unsuspecting investors, including numerous small investors purchasing over
     the Internet.  The complaint alleges that defendants and relief defendants
     have thus far made at least $5 million on sales of EOSC stock, and the
     fraud continues.

     According to the complaint, the defendants illegally sold unregistered,
     restricted shares of EOSC, purchased small quantities of EOSC stock at far
     above the market price in order to inflate that price, and issued a
     material false statement about EOSC s only potential product, a fingerprint
     device.  As a result of defendants  actions, the complaint alleges, the
     price of EOSC stock rose more than 1000% in one day (from about $.25 or
     $.50 to over $5.00 per share), a price which defendants have maintained for
     several months through control of the supply of the stock and issuance of
     false and misleading information about the company and its potential
     product.

     The Commission suspended over-the-counter trading of the securities of EOSC
     from 1:30 p.m. EST, March 13, 1998 until 11:59 p.m. EST, on March 26, 1998. 
     The Commission suspended trading because of questions regarding the
     accuracy of statements, and material omissions, concerning, among other
     things (1) the viability of EOSC s product, a fingerprint device, (2)
     customer interest in purchasing EOSC s product, and (3) the trading and
     true value of the common stock of EOSC.

     Based on allegations in its complaint, the Court entered a temporary
     restraining order prohibiting the defendants from violating Section 10(b)
     of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and

                              ======END OF PAGE 1======







     Sections 5 and 17(a) of the Securities Act of 1933.  The Court has
     scheduled a hearing for March 25 to determine whether the relief granted
     today should be extended.


















































                              ======END OF PAGE 2======