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                SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C.


SECURITIES AND EXCHANGE COMMISSION v. COMPARATOR SYSTEMS
CORPORATION, ROBERT REED ROGERS, SCOTT HITT AND GREGORY ARMIJO,
Civil Action No. 96-3856 (LGB) (C.D. Ca.) 

Litigation Release No. 14927 / May 31, 1996
Accounting and Auditing Enforcement Release No. 786 / May 31,
1996

     The U.S. Securities and Exchange Commission announced today
that on May 31, 1996 it filed a lawsuit in federal district court
in Los Angeles, California, alleging violations of the antifraud,
books and records, and reporting provisions of the federal
securities laws by Comparator Systems Corporation, company
Chairman and CEO Robert Reed Rogers, director and vice-president 
Gregory Armijo, and former executive vice-president Scott Hitt. 
The Commission's complaint alleges that the defendants (including
Comparator itself) sold tens of millions of shares of Comparator
stock to investors while making material misrepresentations
concerning the financial status of the Company, the Company's
purported proprietary interest in certain fingerprint
identification technology, and the company's other business
activities. 

     The Commission's complaint alleges that Comparator issued
false and misleading financial statements for the fiscal years
ending June 30, 1994 and June 30, 1995 and for the first three
quarters of fiscal year 1996, which grossly inflated the
company's assets throughout that period. The Complaint further
alleges that Rogers, Hitt and Armijo caused Comparator to file
these false financial statements for the purpose of enabling
Comparator common stock to remain  listed for trading on the
National Association of Securities Dealers' Automated Quotation
("NASDAQ") SmallCap Market System and to facilitate the sale of
Comparator common stock to the public. 

     The Complaint also alleges that the defendants made mater-
ially false and misleading statements to investors and
prospective investors concerning Comparator's technology,
including claims that Comparator owned certain patents and
licenses that in fact it did not own.  According to the
Complaint, defendants, among other fraudulent misrepresentations,
claimed that Comparator had developed a new generation of
fingerprint identification technology with substantial market
potential, and demonstrated to prospective investors a device
purportedly employing that new technology.  The Complaint alleges
that, in fact, Rogers and Hitt had stolen a prototype of a device
developed by individuals not associated with Comparator, who were
actively attempting to have the device returned. 





     On May 31, 1996, the Honorable Lourdes G. Baird, on ex parte
application of the Commission, has entered a temporary
restraining order prohibiting violations of the anti-fraud and
other provisions of the federal securities laws and freezing the
assets of the individual defendants.

     The Commission's complaint alleges that defendants'
fraudulent misrepresentations and omissions violated Section
17(a) of the Securities Act of 1933 and Section 10(b) of the
Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5
thereunder, and that defendants' conduct in connection with
Comparator's false and misleading Commission filings violated
Section 13(a) of the Exchange Act and Rules 13a-1, 13a-13, and
12b-20 thereunder.  In addition, the Commission's complaint
alleges that defendants' falsification of Comparator's books and
records and failure to implement proper internal controls
constituted violations of Section 13(b)(2)(A) and (B) of the
Exchange Act by all defendants and, in addition, violations of
Section 13(b)(5) of the Exchange Act and Rule 13b2-1 by Rogers,
Hitt and Armijo.

     The Commission seeks, from all defendants, permanent
injunctions against future violations of the above provisions of
the federal securities laws and civil penalties and, in addition,
an order barring Rogers, Hitt and Armijo from serving in the
future as an officer or director of any public corporation.  

     The Commission's investigation is continuing as to other
issues concerning Comparator and trading in its securities.  The
Commission acknowledges the assistance of the National
Association of Securities Dealers in conducting its
investigation.