Litigation Release No. 16229 / August 2, 1999

Securities and Exchange Commission v. Compressent, Inc.
Civil No. 99-CV-02039 (D.D.C.) (filed July 30, 1999).

On July 30, 1999, the Commission filed a complaint in the United States District Court for the District of Columbia against Compressent, Inc. ("Compressent"), an issuer whose securities are traded on the OTC Bulletin Board. The complaint alleges that Compressent, a company that markets and develops computer software, failed to make available to the investing public current and accurate information about its financial condition and results of operations through the filing of periodic reports with the Commission as required by the Securities Exchange Act of 1934 ("Exchange Act"). Specifically, the complaint alleges that Compressent has not filed its Annual Report on Form 10-K for the fiscal year ended September 30, 1998, its Quarterly Reports on Form 10-Q for the fiscal quarters ended December 31, 1998 and March 31, 1999 and three Notifications of Late Filing with respect to its delinquent reports. In addition, Compressent has not filed its Current Report on Form 8-K disclosing the resignation of its auditors. The Commission seeks to compel Compressent to file its delinquent periodic reports and enjoin Compressent from further violations of Section 13(a) of the Exchange Act of 1934 and Rules 12b-25, 13a-1, 13a-11 and 13a-13 thereunder.