U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19576 / February 24, 2006

SEC v. Carl R. Rose, et al., Civil Action No. H-04-CV-2799

The Commission announced that on February 17, 2006, the United States District Court for the Southern District of Texas entered a Final Judgment against Defendant Carl R. Rose, based on his consent.

In its complaint, the Commission alleged that Rose, along with twelve other individuals, carried out a manipulation of two stocks, EpicEdge, Inc., and EVTC, Inc. Rose was charged with violating the antifraud provisions of the federal securities laws and for making, aiding and abetting material false and misleading statements.

Rose, without admitting or denying the allegations of the complaint, consented to an order of permanent injunction which permanently restrained and enjoined him from violating, directly or indirectly, Section 13(a) of the Exchange Act and Rules 13a-1 and 13a-11 [15 U.S.C. § 78m(a) and 17 C.F.R. §§ 13a-1 and 13a-11] by knowingly providing substantial assistance to an issuer that filed false and misleading periodic filings. Based on the consent, the Court also ordered Rose to pay a civil penalty in the amount of $25,000.