==========================================START OF PAGE 1====== UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION SECURITIES ACT OF 1933 Release No. 7364 / November 14, 1996 SECURITIES EXCHANGE ACT OF 1934 Release No. 37948 / November 14, 1996 Accounting and Auditing Enforcement Release No. 857 / November 14, 1996 Administrative Proceedings File No. 3-9186 CEASE-AND-DESIST PROCEEDINGS INSTITUTED AGAINST QUALITY PRODUCTS, INC. The Securities and Exchange Commission today announced the institution of cease-and-desist proceedings pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934 against Quality Products, Inc. (QPI). The Commission alleges that QPI issued three misleading press releases in March 1994, which inaccurately described the status of licensing agreement negotiations between QPI and The Walt Disney Company, Inc. (Disney), and which contained sales projections that lacked any reasonable basis in fact. The Commission also alleges that, during the period of 1989 through September 1993, QPI materially overstated the value of certain assets in financial statements included in the company's Forms 10-Q and 10-K and in a Regulation A public offering of QPI's securities. Lastly, the Commission alleges that QPI is delinquent in its filings with the Commission.