FOR IMMEDIATE RELEASE 2001-136 SEC ORDERS THREE COMPANIES TO CEASE MAKING FALSE ANTI-TERRORISM CLAIMS Washington, DC, November 15, 2001 - The Securities and Exchange Commission announced today that it has ordered three publicly-traded companies to cease committing fraud in connection with their issuance of false press releases that sought to exploit the public’s anxiety over bio terrorism. In each case, the company consented to the order without admitting or denying the Commission’s findings. The Commission found that two companies, Disease Sciences, Inc., of Boca Raton, Florida, and The Classica Group, Inc., of Lakewood, New Jersey, each had misrepresented that they had technologies capable of killing anthrax in mail and packages. In fact, neither company had a technology that had been tested or otherwise shown to be effective or economical for that purpose. The Commission further found that a third company, R- Tec Technologies, Inc., of Flanders, New Jersey, had falsely claimed that it had “developed and patented” a “Chemical and Biological Alarm and Neutralization Defense system,” or “C- BAND,” which the company described as the “first mechanically operated system designed to protect civilians in every day life from biological and chemical terrorism attacks.” The Commission found, among other things, that R-Tec Technologies has not currently developed such a system, holds no patent on the C-BAND, and no prototype of the C- BAND has ever been tested. “The conduct that led to these enforcement actions is reprehensible,” said SEC Enforcement Division Director, Stephen M. Cutler. “Any effort to profit by spreading false information that plays on people’s fear is unconscionable. Today’s enforcement actions make clear that the Commission will act in ‘real-time’ to sanction such conduct.” The Commission’s Orders found that: On October 16 and 17, 2001, Disease Sciences issued press releases concerning a purported remedy - High Pressure Pulse processing - for anthrax contamination of food, water and mail. Disease Sciences’ press releases, however, omitted to state that High Pressure Pulse had not been tested for, or shown to be practical or economical for the uses suggested in the Disease Sciences October 16 press release; and that Disease Sciences did not yet have a license to use High Pressure Pulse for any of the uses suggested in the October 16 press release. On October 11 and 12, 2001, Classica Group issued press releases concerning the use of microwave technology to kill anthrax in packages and mail. The Classica Group press releases omitted to state that its microwave technology had not been tested for or shown to be practical, economical, or effective for killing anthrax in packages or in mail. On September 24, 2001, R-Tec Technologies issued a press release that claimed that it had “developed and patented” a “Chemical and Biological Alarm and Neutralization Defense system,” or “C-BAND,” which the company described as the “first mechanically operated system designed to protect civilians in every day life from biological and chemical terrorism attacks.” The true facts were otherwise. For example, as R-Tec Technologies acknowledged in a November 7, 2001 press release: (i) a prototype of C-BAND has never been tested; (ii) R-Tec Technologies does not have any immediate plans for the production of C-BAND, and does not know if the system will ever be commercially available; (iii) R-Tec Technologies did not create any of the technologies it proposes to use in C- BAND; and (iv) R-Tec Technologies does not hold any patent for C-BAND. The Orders issued today by the Commission order respondents to cease and desist from committing or causing any violation and any future violation of Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act), and Rule 10b-5 promulgated under the Exchange Act. For further information, contact Linda Chatman Thomsen at (202) 942-4501 concerning Disease Sciences and Classica Group and Barry W. Rashkover at (646) 428-1856 concerning R- Tec Technologies. # # #