U.S. SECURITIES AND EXCHANGE COMMISSION

             Litigation Release No. 16149 / May 17, 1999

             SECURITIES AND EXCHANGE COMMISSION v. NICHOLAS L. GERANIO;
             CALIFORNIA LASER COMPANY, Civil Action No. 99-4702 WJR
             (AIJx) (C.D. Cal.)

                  On April 30, 1999, the Securities and Exchange
             Commission filed an emergency lawsuit shutting down several
             Southern California boiler rooms and freezing the assets of
             a Woodland Hills businessman and the holographic imaging
             company he founded.  The lawsuit charges Nicholas L.
             Geranio, 41, and his Van Nuys firm, California Laser
             Company, with securities fraud, alleging the
             misappropriation of over $400,000 of investor funds.
             According to the complaint, Geranio used investor funds to,
             among other things, finance his personal hobby of racing
             Midget type race cars, pay the mortgage on his home and buy
             expensive jewelry for his wife.  The Commission further
             alleges that Geranio and California Laser deceived investors
             into believing that an actor, James Doohan, who played
             "Scotty" on the original "Star Trek" television series, had
             endorsed the company.

                  In its lawsuit, which was filed in federal court in Los
             Angeles, the Commission alleges that, from January 1998
             through the present, Geranio and California Laser used high
             pressure telemarketing sales tactics, such as cold calling
             and sale scripts, to raise over $2.3 million in the sale of
             stock to approximately 500 investors nationwide.  In
             addition to misappropriating investor funds, the Commission
             alleges that since October 1998, Geranio and California
             Laser have lied to investors about the payment of sales
             commissions stating that no commissions would be paid to
             employees, when, in fact, Geranio and California Laser have
             routinely paid their employees 25% sales commissions,
             totaling over $206,000.

                  As part of its lawsuit, the Commission charged Geranio
             and California Laser with violating the antifraud provisions
             of the federal securities laws, Section 17(a) of the
             Securities Act of 1933 and Section 10(b) of the Securities
             Exchange Act of 1934 and Rule 10b-5 thereunder, and the
             securities registration provisions of Section 5(a) and 5(c)
             of the Securities Act of 1933.  In addition to the asset
             freeze, the Commission also obtained a temporary restraining
             order, an accounting and other relief against the
             defendants.  The Commission’s complaint also seeks
             preliminary and permanent injunctions, disgorgement and
             civil penalties against the defendants.