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U.S. Securities and Exchange Commission


Litigation Release No. 16434 /February 11, 2000

Securities and Exchange Commission v. Andrew Jay Newmark, Case No. 00CV305JM (JFS) (S.D. Cal. 2000)

On February 11, 2000, the Securities and Exchange Commission ("Commission") announced that it had filed and settled an insider trading action against Andrew Jay Newmark ("Newmark"), who realized unlawful profits in excess of $173,000 in connection with trades in DH Technology, Inc. stock. Prior to its merger with Axiohm, S.A., DH Technology was a company located in San Diego which designed, manufactured and distributed credit card receipt and bar code printers. Newmark, 41, resides in Greenwich, Connecticut and has been Chairman of CoStar Corporation, a manufacturer of label printers since 1989.

The Commission´s complaint alleges that Newmark learned from DH Technology´s Chief Executive Officer that Axiohm had proposed a merger with DH Technology. Beginning on the day Newmark learned this material, non-public information, he rapidly bought $513,125 of DH Technology stock. Newmark sold his shares shortly after the public announcement of the tender offer, realizing a $173,895.38 profit.

The Commission alleged Newmark engaged in insider trading in violation of the antifraud provisions of Section 14(e) of the Securities Exchange Act of 1934 and Rule 14e-3 thereunder. Newmark, without admitting or denying the allegations contained in the Complaint, consented to the entry of the judgment enjoining him from future antifraud violations and ordering him to pay $173,895.38 in disgorgement, plus prejudgment interest and $173,895.38 in civil penalties.

The Commission acknowledges the assistance provided by NASDR Inc. in connection with this matter.