SECURITIES AND EXCHANGE COMMISSION
                                    Washington, DC


             LITIGATION RELEASE NO. 16116 \ April 21, 1999

             Securities  and  Exchange Commission v. Grady A. Sanders and
             Erica J. Hull, Civil Action No. 98-2346-LFO (D.D.C.)

                  On  April  12,   1999,   the  Securities  and  Exchange
             Commission ("Commission") obtained  a  federal  court  order
             requiring  Erica  J. Hull ("Hull") of Denver to pay $150,000
             in penalties (plus  prejudgment interest of $29,876) arising
             from Hull’s fraudulent  promotion of a microcap company. The
             order, entered by the Honorable  Louis  F. Oberdorfer of the
             United States District Court for the District  of  Columbia,
             enforces  payment  of  penalties  previously imposed by  the
             Commission in an administrative proceeding,  and was entered
             against   Hull   by  default.   The  Commission  filed   its
             complaint, pursuant  to  Section  21(e)  of  the  Securities
             Exchange Act of 1934 ("Exchange Act") [15 U.S.C. §  78u(e)],
             on  September  30,  1998.  The  complaint  charged that Hull
             failed  to  comply  with  the terms of the prior  Commission
             order imposing civil money penalties issued in In the Matter
             of New Allied Development Corp., Erica J. Hull, and Grady A.
             Sanders, Administrative Proceeding File No. 3-8395 (November
             26, 1996).

                  The prior Commission order contained findings that Hull
             and  another  respondent  were   responsible   for  material
             omissions   and  fraudulent  representations  concerning   a
             microcap  company’s,  New  Allied  Development  Corp.  ("New
             Allied"), disclosure  statements,  made pursuant to Exchange
             Act Rule 15c2-11, and press releases and concluded that Hull
             and the other respondent violated the  antifraud  provisions
             of  the  Securities  Act of 1933 ("Securities Act") and  the
             Exchange Act, and of Rule  10b-5  thereunder. The Commission
             imposed remedial sanctions on Hull and required her to pay a
             civil money penalty of $150,000. After  Hull  failed  to pay
             the  disgorgement  and penalty as ordered by the Commission,
             the Commission initiated this action.

                  For further information on this case, please see
             Exchange Act Releases 37990 and 34274 and Litigation Release
             No. 16065.