U.S. SECURITIES AND EXCHANGE COMMISSION



  Litigation Release No.  15966 / October 30, 1998

  Securities and Exchange Commission v. Steven A. Sambrano,
  Civil Action No. SA CV 98929 AHS (ANX) (C.D. Cal.)

       The Securities and Exchange Commission (Commission) filed an
  enforcement action in federal court today charging insider
  trading by a former employee of Smith Micro
  Software, Inc., an Orange County high tech firm.  The complaint
  alleges that Steven A. Sambrano (Sambrano), age 35, of San
  Clemente, California, used confidential corporate information in
  buying stock in his then employer Smith Micro.

       The Commission's complaint alleges that Sambrano, while
  employed at Smith Micro, helped negotiate a software packaging
  agreement between Smith Micro and Compaq Computer Corp. (Compaq).
  Sambrano also received draft copies of the press release
  announcing the agreement just days before it was issued on March
  12, 1998.  The complaint further alleges that Sambrano used the
  inside information concerning the Compaq agreement in purchasing
  5,000 shares of Smith Micro stock the day before the
  announcement.  Within hours of the March 12 press release
  announcing the agreement, Sambrano sold his Smith Micro shares
  and realized a profit of $10,625.

       Sambrano has agreed to settle the case by consenting,
  without admitting or denying the allegations in the complaint, to
  the entry of a judgment permanently enjoining him from future
  violations of the antifraud provisions of Section 10(b) of the
  Securities Exchange Act of 1934 and Rule 10b-5 thereunder and to
  the payment of $21,569.51 -- $10,944.51 for Sambrano's ill-gotten
  gains and $10,625 for a civil penalty.