SECURITIES AND EXCHANGE COMMISSION
                                   Washington, D.C.


             Litigation Release No. 15844  / August 12, 1998

             Accounting and Auditing Enforcement
             Release No. 1065

             SEC v. William P. Trainor, Vincent D. Celentano, Karen
             Losordo, Medical Diagnostic Products, Inc. (f/k/a Novatek
             International, Inc.), New England Diagnostics, Inc., Diane
             M. Trainor, Daniel J. Trainor, Geraldine Trainor and Mary N.
             Celentano
             Civil Action No. 98-CV01533 (EGS) (USDC/DC)

             The Commission today amended its Complaint previously filed
             in the United States District Court for the District of
             Columbia against Medical Diagnostic Products, Inc. (f/k/a
             Novatek International, Inc. "Novatek"), a Columbia,
             Maryland-based company that purports to distribute medical
             diagnostic test kits, William P. Trainor and Vincent D.
             Celentano, both residents of Hillsboro Beach, Florida.  The
             amended Complaint adds  Trainor's daughter, Karen Losordo,
             of Hingham, Massachusetts and New England Diagnostics, Inc.,
             which operated out of Losordo's home, as defendants.  The
             amended Complaint adds allegations of fraud arising out of
             sales of securities by defendants Trainor, Celentano,
             Losordo and New England Diagnostics of Health Care, Ltd.,
             purportedly a Russian company.

             The Commission's initial Complaint alleged that Trainor and
             Celentano committed a massive fraud on investors by, among
             other things, orchestrating a series of sham transactions
             among Novatek and other companies that they controlled,
             followed by their issuing a series of press releases which
             announced that Novatek had entered into highly profitable
             contracts with a variety of other entities.  No such
             contracts existed.  The Complaint also named Diane M.
             Trainor, Daniel J. Trainor, Geraldine Trainor and Mary N.
             Celentano as relief defendants.

             The amended Complaint retains all of the earlier allegations
             and adds allegations that from 1995 or earlier, through at
             least February 1996, Trainor, Losordo, Celentano and New
             England Diagnostics, a company owned and controlled by
             Trainor and operated by Losordo, sold U.S. investors stock
             in Health Care, Ltd., a company created and controlled by
             Trainor and Celentano.  The Complaint alleges that the offer
             and sale of the stock was not registered with the
             Commission, as required by law.  The Complaint also alleges
             that Trainor, Celentano, Losordo and New England Diagnostics
             defrauded investors by falsely claiming that Health Care
             Ltd. had contracts, purportedly worth millions of dollars,
             with Russian health agencies for the sale of test kits for
             the rapid diagnosis of communicable diseases, including AIDS
             and cholera.  The Complaint alleges that, in fact, Health
             Care, Ltd. had no purchase contracts with any Russian
             agency, never sold any product for commercial purposes or
             engaged in any other commercially significant business in
             Russia, and that the stock never was offered for public sale
             in Russia.

             The Complaint alleges that the defendants violated the
             antifraud provisions of the securities laws, specifically
             Section 10(b) of the Securities Exchange Act of 1934 and
             Rule 10b-5 thereunder and Section 17(a) of the Securities
             Act of 1933.  It also alleges they violated Section 5 of the
             Securities Act prohibiting unregistered offerings of
             securities and that defendant Celentano sold Novatek stock
             without being registered as a broker or associated with a
             broker in violation of Section 15(a) of the Exchange Act.
             The Complaint seeks to enjoin the defendants from further
             violation of these provisions, as well as other violations
             alleged in the original Complaint.  The Complaint also seeks
             to obtain civil penalties from the individual defendants, an
             accounting of their profits and of sales to investors, and
             seeks to bar Trainor and Celentano from serving as officers
             or directors of public companies.

             For more information about the initial Complaint, see
             Litigation Release No. 15786/ June 18, 1998.