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                SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C.

LITIGATION RELEASE NO. 15337 / April 17, 1997

SECURITIES AND EXCHANGE COMMISSION v. DAVID E. LIPSON, Civil
Action No. 97 C. 2661 (N.D. Ill.) (filed April 17, 1997)

     On April 17, 1997, the Commission filed a complaint in the
United States District Court for the Northern District of
Illinois against David E. Lipson,  for insider trading in the
securities of Supercuts, Inc. ("Supercuts"), formerly a NASDAQ-
listed company located in San Francisco, California.  The
complaint alleges that, in March and April 1995, Lipson, who was
then Supercuts' chairman, chief executive officer and largest
shareholder, sold 365,000 shares of Supercuts common stock at
prices between $9.50 and $9.3125 in an account that he controlled
in his son's name.  At the time of his sales, the complaint
alleges, Lipson possessed material nonpublic information about
Supercuts' disappointing financial performance during the quarter
ended March 31, 1995.  After the company announced its quarterly
results on May 12, 1995, the price of the company's common stock
fell from $9.00 to $7.625 per share.  By selling Supercuts common
stock while in possession of material nonpublic information, the
complaint alleges, Lipson breached duties he owed to Supercuts'
shareholders and avoided losses of approximately $621,875. 

     The complaint alleges that Lipson's trading violated Section
17(a) of the Securities Act of 1933 and Section 10(b) of the
Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5
thereunder.  The complaint also alleges that Lipson failed to
file required reports of his changes in beneficial ownership in
violation of Section 16(a) of the Exchange Act and Rules 16a-2
and 16a-3 thereunder.  The Commission seeks a permanent
injunction, disgorgement of Lipson's trading losses avoided,
prejudgment interest and civil penalties.