U.S. SECURITIES AND EXCHANGE COMMISSION

          Litigation Release No. 16057 / February 11, 1999

          SECURITIES AND EXCHANGE COMMISSION v. SATCOM, INC., SATCOM
          MARKETING AND DISTRIBUTION, INC., TRICAP VENTURES, COASTAL
          ENTERPRISES, LLOYD D. PAINE, SCOTT C. MESSIER AND LAWRENCE C.
          HARVEY, Civil Action No. 99-CV 0234 IEG LAB (S.D. Cal.)

               The Securities and Exchange Commission ("SEC") announced
          that on February 10, 1999 it obtained a temporary restraining
          order halting the operations of four San Diego entities that were
          conducting a fraudulent investment scheme through which
          approximately $3.1 million has been raised.  Named in the
          Complaint are SatCom,  Inc. ("SatCom") SatCom Marketing and
          Distribution, Inc. ("SMD"), Tricap Ventures ("Tricap"), and
          Coastal Enterprises ("Coastal"), all located in San Diego,
          California, and Lloyd D. Paine, age 53, of Jamul, California,
          Scott C. Messier, age 35, of San Diego, and Lawrence C. Harvey,
          age 38, also of San Diego.  Paine is the president, CEO, and a
          member of the board of directors of SatCom and a member of the
          board of directors of SMD.  Both Messier and Harvey are Chief
          Financing Directors and members of the board of directors of
          SatCom and SMD and executive advisors to Tricap and Coastal.

               The Complaint alleges that from May 1997 through the
          present, the defendants have raised approximately $3.1 million
          from the offer and sale of common stock in SatCom and SMD to
          about 150 investors nationwide.  According to the Complaint the
          defendants made material misrepresentations and omissions in
          connection with the offer and sale of these securities.  The
          defendants represented that investor funds would be used to
          develop, manufacture, market, and sell SatCom’s products, which
          include a "reusable space launch vehicle," and that no investor
          funds would be used for sales commissions in connection with the
          sale of SatCom and SMD stock.  Contrary to these representations,
          the defendants misused investors’ funds by spending only
          approximately 5% of investor funds on the stated purpose and
          spending almost all of the remaining funds on undisclosed and
          undetermined expenses, including sales commissions of 40% to
          Tricap and Coastal, payments to Paine and his family of more than
          $135,000, payment of more than $250,000 for the personal American
          Express card of Paine’s wife (used in substantial part for
          personal expenses of the Paine family), the purchase of a
          Mercedes Benz automobile for the use of Paine’s wife, and
          operating costs of the "boiler room" through which investors were
          solicited.

               The SEC obtained an order freezing the assets of the
          defendants and temporarily enjoining the defendants from future
          violations of Sections 5(a) and 5(c) of the Securities Act of
          1933 ("Securities Act"), the securities registration provisions,
          and Section 17(a) of the Securities Act, Section 10(b) of the
          Securities Exchange Act of 1934, and Rule 10b-5 thereunder, the
          antifraud provisions.  The Complaint seeks preliminary and
          permanent injunctions, disgorgement, and civil penalties against
          the defendants.