Litigation Release No. 19672 / April 26, 2006

SEC v. BodyScan Corporation and Anthony Sciuto, Civil Action No. SACV 05-256 DOC (RNBx) (C.D. Cal.)

Court Enters Final Judgment Against BodyScan Corporation President and CEO Anthony Sciuto

On March 7, 2006, the Honorable David O. Carter, United States District Judge for the Central District of California, granted the Securities and Exchange Commission's motion for summary judgment and entered a final judgment against Anthony Sciuto, the president and CEO of BodyScan Corporation ("BodyScan"), permanently enjoining Sciuto from violating Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder, ordering Sciuto to pay a civil penalty of $120,000, and barring Sciuto from serving as an officer or director of any company, public or non-public. The Court found that Sciuto had made and disseminated false statements concerning the number of imaging centers operated by BodyScan, the company's prospects for growth, and its anticipated earnings. Previously, on March 17, 2005, the Commission filed a complaint against BodyScan and Sciuto, charging them with making a series of materially false and misleading statements, in violation of the antifraud provisions of the Exchange Act. On August 30, 2005, the Court entered a final judgment by default against BodyScan, permanently enjoining it from violating the same antifraud provisions of the federal securities laws and ordering it to pay a civil penalty of $600,000.