SECURITIES    
                                  AND    
                         EXCHANGE   COMMISSION

          Litigation Release No. 16038 / January 21, 1999

          Securities and Exchange Commission v. Ronnie R. Neihart and
          Synvion Corporation, Defendants. Civil Action File No. 1:98-CV-
          3341-WBH    (N.D.Ga. January 20, 1999)

               The   Securities   and  Exchange  Commission  ("Commission")
          announced  today  that,  after   a   hearing   which   the  Court
          consolidated with the trial on the merits, Judge Willis  B.  Hunt
          of the United States District Court for the Northern District  of
          Georgia  entered  an  order against Ronnie R. Neihart ("Neihart")
          and Synvion Corporation  ("Synvion")  permanently  enjoining them
          from further violations of Sections 5(a), 5(c) and 17(a)  of  the
          Securities  Act of 1933 ("Securities Act") and Sections 10(b) and
          13(a) of the Securities Exchange Act of 1934 ("Exchange Act") and
          Rules 10b-5,  13a-1  and  13a-13 thereunder. The Court found that
          defendants Neihart and Synvion  engaged in fraud in the offer and
          sale of unregistered securities in  the  form  of  Synvion common
          stock   using   misrepresentations  and  omissions  of  fact   to
          investors.

                 The Court  found  that  Neihart  and  Synvion effected the
          scheme  by  falsely representing that Synvion’s  stock  would  be
          quoted on NASDAQ, touted false representations that the company’s
          primary assets  of  ETA10  supercomputers  had  a  value  of  $20
          million,   misrepresented  the  existence  of  contracts  between
          Synvion and  various  corporations when no such contracts existed
          and misrepresented that  Synvion had a stock lease agreement with
          Prudential.   The  Court  found,   that   the  defendants  misled
          investors  as to the status of a 1996 North  Carolina  cease  and
          desist order  and  that  Neihart used investor funds for personal
          items.  The Court also found  that  Neihart  and  Synvion sold 11
          million  shares  of Synvion stock to 70 investors in  six  states
          since July 1997.   The  Court ordered Neihart to pay disgorgement
          of $961,000 with prejudgment  interest and ordered Synvion to pay
          disgorgement   of  $961,000  with  prejudgment   interest.    The
          calculation of disgorgement  was based upon the amount of Synvion
          stock sold by the defendants in  the  relevant period.  The Court
          ordered  Niehart  to  pay a civil penalty  in  an  amount  to  be
          determined at a later date,  and  further ordered that Neihart be
          permanently barred from serving as  an  officer or director of an
          issuer.   The  Commission  did not seek a civil  penalty  against
          defendant Synvion.

          See also:  L.R. 15987 (November  25,  1998); L.R. 15995 (December
          8, 1998)