SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17077 \ July 25, 2001

COMMISSION FILES SETTLED INSIDER TRADING ACTION AGAINST STEVEN G. THANHAUSER

SECURITIES AND EXCHANGE COMMISSION V. STEVEN G. THANHAUSER, Civil Action No. 01-CV-1921 (United States District Court for the Northern District of Georgia).

The Securities and Exhange Commission announced that the Honorable Judge Marvin H. Shoob of the United States District Court for the Northern District of Georgia has issued a Final Judgment of Permanent Injunction and Other Relief against Steven G. Thanhauser, a resident of Raleigh, North Carolina. The final judgment permanently enjoins Thanhauser from future violations of the antifraud provisions of the Securities Exchange Act of 1934 and orders him to disgorge ill-gotten gains in the amount of $13,876 plus interest. The Court also ordered Thanhauser to pay a civil penalty of $13,876.

The Commission's complaint alleges that on or before February 16, 1999, Thanhauser misappropriated confidential information regarding Public Service Company of North Carolina, Inc.'s ongoing merger negotiations with SCANA Corporation and other companies from his wife, who, at the time, was a director of Public Service Company. The complaint further alleges that on February 16, 1999, Thanhauser purchased 2,000 shares of Public Service Company common stock at $22.50 per share based upon this misappropriated information. The next day, after Public Service Company announced its merger with SCANA, its stock price closed at $29.438, resulting in an unrealized profit of $13,876 for Thanhauser.

Without admitting or denying the Commission's allegations, Thanhauser consented to entry of a final judgment that permanently enjoins him from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. In addition, Thanhauser agreed to disgorge $16,513.70 in imputed profits (including prejudgment interest of $2,637.70) and to pay a civil penalty of $13,876.