UNITED STATES SECURITIES AND EXCHANGE COMMISSION

   LITIGATION RELEASE NO.  16010  /  December 23, 1998

SECURITIES AND EXCHANGE COMMISSION v. REMINGTON-HALL CAPITAL CORP., and
DOUGLAS T. FONTENO,  3:98CV2470-G, USDC, ND/TX (Dallas Division)

   On December 21, 1998, Judge Joe A. Fish, federal district judge
for the Northern District of Texas, entered a final judgment by default
against Douglas T. Fonteno ("Fonteno"), formerly president and chief
executive officer of Remington-Hall Capital Corp. ("Remington-Hall").
The Securities and Exchange Commission’s  ("Commission") complaint
charged Fonteno with raising at least $1 million from investors in a
fraudulent offering of unregistered Remington-Hall stock. Further, the
Commission’s complaint charged that Fonteno distributed false and
misleading informational releases to the public, including "spamming"
(sending unsolicited e-mail) and website postings via the Internet, for
the purpose of artificially increasing or supporting the price of the
company’s publicly traded shares.

   Fonteno, who was convicted in 1996 for state securities fraud,
recently pled guilty to violating the terms of his probation in the
criminal matter, based on the violations set out in the Commission’s
complaint, and was sentenced to ten years incarceration.

   The final judgment permanently enjoins Fonteno from future
violations of  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.  The court also ordered Fonteno to pay disgorgement in the
amount of $126,329.98, which represents the amount paid or attributable
to him from the proceeds of unlawful securities transactions set out in
the Commission’s complaint,  plus prejudgment interest of $6,252.18,
and a civil penalty of $12,567.