U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19921 / November 21, 2006

Securities and Exchange Commission v. Spiegel, Inc., No. 03-CV-1685, N.D. Ill., November 20, 2006

On November 20, 2006 the Honorable James B. Zagel of the Northern District of Illinois entered an Order granting a Motion in which the Securities and Exchange Commission ("SEC") sought dismissal of its final claims for disgorgement and civil penalties in a civil injunctive action filed against Spiegel, Inc. The Order also granted the SEC's request to enter a final judgment in the action. The SEC previously filed the action, charging Spiegel, a publicly-held company with corporate headquarters located in Downers Grove, Illinois, with violating the federal securities laws. Spiegel did not admit or deny the charges but consented to the entry of a partial final judgment of permanent injunction enjoining it from future violations of Sections 10(b) and 13(a) of the Securities Exchange Act of 1934 ("Exchange Act") and Rules 10b-5, 13a-1 and 13a-13 thereunder. Spiegel also consented to the appointment of an Independent Examiner to review its financial records and provide a report to the Court.

Spiegel filed for bankruptcy shortly after the SEC's action was filed. In July 2004 Spiegel, without admitting or denying any findings other than the Commission's jurisdiction over it and the subject matter, consented to the entry of an Order pursuant to Section 12(j) of the Exchange Act which revoked the registration of its securities based on its continuing failure to file its required reports.