UNITED STATES SECURITIES AND EXCHANGE COMMISSION

             Litigation Release No.  15908 / September 28, 1998

             SECURITIES AND EXCHANGE COMMISSION v. LOUIS G. KARABOCHOS,
             KATHY D. KARABOCHOS, KENNETH E. RATTO, AND STEPHEN L. BOYD,
             United States District for the Northern District of
             California, Civil Action No. 98-3718 (MMC)

             On September 28, 1998. the Securities and Exchange
             Commission sued four California residents, alleging that
             they fraudulently convinced approximately 780 people across
             the country to buy $5 million of restricted stock in
             Gateways to Space, Inc., a company formerly located in
             Pleasanton, California.  In its civil complaint filed with
             the United States District Court for the Northern District
             of California, the Commission named as defendants Louis G.
             Karabochos, a resident of Walnut Creek, California, and
             former chairman, president, and chief executive officer of
             Gateways; his wife, Kathy D. Karabochos, also a resident of
             Walnut Creek, California, and former vice-president and
             chief operations officer of Gateways; Kenneth E. Ratto, a
             resident of Sacramento, California, and a former independent
             sales agent for Gateways; and Stephen L. Boyd, a resident of
             Chico, California, and a former independent sales agent for
             Gateways.  Gateways, now a defunct entity, attempted to
             develop and market a series of educational videotapes
             related to the United States space program until the company
             ceased operations in 1996.

             The Commission's complaint makes the following allegations.
             Between approximately 1993 and March 1996, the defendants
             fraudulently offered and sold Karabochos' unregistered,
             restricted Gateways stock to more than 780 investors
             nationwide, resulting in investor losses of approximately $5
             million.  In their offer and sale of Karabochos' stock, the
             defendants made material misrepresentations or omissions to
             investors.  For example, Karabochos misrepresented to
             prospective investors that after six months they could
             exchange their restricted stock either for the amount of
             their original investment, plus interest, or for
             unrestricted Gateways shares.  The complaint also alleges
             that Karabochos and his wife overstated the Company's sales
             of videotapes to investors, prepared false sales reports and
             instructed Gateways employees to mislead investors as to the
             true level of current sales.  Defendants Ratto and Boyd
             allegedly told investors that they did not have a direct
             financial interest in the sale of Karabochos' restricted
             stock when, in fact, they received commissions of up to 20%
             on sales in which they were involved.  Finally, the
             defendants allegedly offered and sold Karabochos' restricted
             stock without complying with the registration provisions of
             the federal securities laws.

             The complaint alleges violations of Sections 5(a), 5(c), and
             17(a) of the Securities Act of 1933, Section 10(b) and 15(a)
             of the Securities Exchange Act of 1934 and Rule 10b-5
             thereunder.  The Commission also seeks disgorgement of ill-
             gotten gains, civil penalties, and other appropriate relief
             against Defendants.