U.S. Securities and Exchange Commission

          Litigation Release No. 15879 \ September 10, 1998

          SEC v. Appalachian Investment Corporation, Inc., et al. , Civil
          Action No. 98-1506 (W.D. Pa.)

               The Securities and Exchange Commission ("Commission")
          announced today that, on September 10, 1998, it filed a complaint
          in the United States District Court for the Western District of
          Pennsylvania, against Appalachian Investment Corporation
          ("Appalachian"),  Dennis G. Cerilli ("Cerilli"), Frank A. DeBone
          ("DeBone"), Robert C. Walters ("Walters"), Dennis J. Oslosky
          ("Oslosky") and John W. Hinton ("Hinton").  The complaint alleges
          that the defendants violated Section 17(a) of the Securities Act
          of 1933 and Section 10(b) of the Securities Exchange Act of 1934
          and Rule 10b-5 thereunder and, based on those violations, seeks
          permanent injunctions, disgorgement, prejudgment interest and
          civil penalties against each of the defendants.

               In its complaint, the Commission alleges that, between
          November 1995 and August 1996,  the defendants engaged in a
          scheme to misappropriate investor funds raised through the
          fraudulent offer and sale of more than $4.6 million worth of
          securities in the form of subordinated debentures of Appalachian
          and its affiliate, CCMI, Inc.  The complaint charges that the
          defendants induced approximately 75 investors, most of whom were
          elderly, to purchase the securities by misrepresenting the degree
          of risk associated with their investment and the intended use of
          proceeds raised in the offering.  The complaint further alleges
          that defendants misled investors by guaranteeing them a 10%
          annual rate of return while providing little or no information
          about the financial condition of Appalachian, CCMI or its
          affiliates.

               The complaint also charges that, rather than use investor
          proceeds to loan money to an affiliated entity of Appalachian as
          represented,  the defendants used those funds for their personal
          benefit, to keep their businesses afloat and to make interest
          payments to existing investors.  The individual defendants
          received investor funds for their personal benefit in the
          following approximate amounts:  Cerilli, $696,255; DeBone,
          $376,200; Oslosky, $201,706; Walters $270,789; and, Hinton,
          $46,262.