SECURITIES AND EXCHANGE COMMISSION
                                   WASHINGTON, D.C.

          Litigation Release No. 16004 / December 17, 1998

          Securities and Exchange Commission v. Chancellor Group, Inc.
          Civil No. 98-CV-01933 (D.D.C.) (filed August 4, 1998)

               On August 4, 1998, the Commission filed a civil action in
          the United States District Court for the District of Columbia
          against Chancellor Group, Inc. ("Chancellor Group") to compel
          Chancellor Group to file its delinquent periodic reports and to
          enjoin Chancellor Group from future violations of Section 13(a)
          of the Securities Exchange Act of 1934 ("Exchange Act") and Rules
          12b-25, 13a-1 and 13a-13, thereunder.  On December 7, 1998, the
          District Court entered a final judgment by default (i) enjoining
          Chancellor Group from violating Section 13(a) of the Exchange Act
          and the rules thereunder; and (ii) compelling Chancellor Group to
          file its Annual Reports on Form 10-K for the fiscal years ended
          July 31, 1996, 1997 and 1998, and its Quarterly Reports on Form
          10-Q for the fiscal quarters ended October 31, 1996, January 31,
          April 30 and October 31, 1997 and January 31 and April 30, 1998.