UNITED STATES SECURITIES AND EXCHANGE COMMISSION


     LITIGATION RELEASE NO. 15566  /November 19, 1997


     SECURITIES AND EXCHANGE COMMISSION v. PARAMOUNT CAPITAL MANAGEMENT, INC.
     and "JOHN DOE" a/k/a "Kenneth Bridget", 97 Civ. 8577 (SHS) (S.D.N.Y.)

     The Commission announced that it filed a Complaint yesterday in federal
     court in Manhattan charging an unregistered broker-dealer and an individual
     with having defrauded investors by inducing them to invest in a fictitious
     initial public offering ("IPO").  The court granted the Commission's
     request for emergency relief, including a temporary restraining order and
     an asset freeze.     

     Named in the Complaint are:

          Paramount Capital Management, Inc. ("Paramount), a New York
          corporation having office space at 11 Broadway, Suite 950, New York,
          New York  10004; and 

          "John Doe," whose true identity is unknown, but who holds himself out
          as "Kenneth Bridget," an account executive and senior vice president
          of Paramount.

     Specifically, according to the Complaint, since at least July 1997,
     Paramount and "Kenneth Bridget" have been offering and selling securities
     in a purported IPO of "Micronet Corp." ("Micronet").  The Complaint alleges
     that, when investors seek information about Micronet, instead of sending
     them a prospectus, Paramount and "John Doe" refer them to a Web Site on the
     Internet for "MicroNet Technology, Inc." -- a company that has not
     undertaken any initial public securities offering, has no plans to do so,
     and denies any knowledge of Paramount or "Kenneth Bridget."

     The Commission alleges that Paramount and John Doe also deceived investors
     by falsely portraying themselves as a bona fide broker-dealer and
     registered representative.  Paramount and John Doe allegedly sent investors
     a brochure describing Paramount as a securities broker-dealer, even though
     Paramount is not registered with the Commission as such.  The brochure also
     allegedly touts Paramount's supposed membership in the National Association
     of Securities Dealers, Inc., the Securities Investor Protection
     Corporation, and other industry institutions even though Paramount does not
     belong to them.    

     The Commission also announced that the court issued an order yesterday
     afternoon that, among other things, temporarily restrains Paramount and
     John Doe from further committing securities fraud in violation of Section
     17(a) of the Securities Act of 1933 ("Securities Act"), and Section 10(b)
     of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5, and
     from continuing to operate as a broker-dealer without being registered, in
     violation of Section 15(a) of the Exchange Act.  The court's order, among
     other things, also freezes the defendants' assets.  A hearing on the
     Commission's application for a preliminary injunction and other relief is
     scheduled for Wednesday, 
     December 3, 1997.



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     The Commission seeks a final judgment permanently enjoining Paramount and
     "Kenneth Bridget" from violating Section 17(a) of the Securities Act, and
     Sections 10(b) and 15(a) of the Exchange Act and Rule 10b-5, and ordering
     them to disgorge their ill-gotten gains and to pay prejudgment interest.




















































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