SECURITIES AND EXCHANGE COMMISSION
                                    Washington, DC


             LITIGATION RELEASE NO. 16065 / February 18, 1999

             Securities  and  Exchange Commission v. Grady A. Sanders and
             Erica J. Hull, Civil Action No. 98-2346-LFO (D.D.C.)

                  On  February  2,  1999,  the  Securities  and  Exchange
             Commission ("Commission")  obtained  a  federal  court order
             requiring  Grady A. Sanders of Los Angeles to pay $1,115,195
             in  penalties   and   disgorgement   arising  from  Sander’s
             fraudulent  promotion  of  a  microcap company.  The  order,
             entered by the Honorable Louis  F.  Oberdorfer of the United
             States District Court for the District of Columbia, enforces
             payment of penalties and disgorgement  previously imposed by
             the  Commission  in  an  administrative proceeding.  Sanders
             consented to the entry of  the  District Court’s order.  The
             Commission filed its complaint, pursuant to Section 21(e) of
             the  Securities Exchange Act of 1934  ("Exchange  Act")  [15
             U.S.C.  §  78u(e)],  on  September  30,  1998. The complaint
             charged that Sanders failed to comply with  the terms of the
             prior Commission order imposing remedial sanctions issued in
             In  the  Matter  of New Allied Development Corp.,  Erica  J.
             Hull, and Grady A.  Sanders,  Administrative Proceeding File
             No. 3-8395 (November 26, 1996).

                  The  prior  Commission order  contained  findings  that
             Sanders and another respondent were responsible for material
             omissions  and  fraudulent   representations   concerning  a
             microcap  company’s,  New  Allied  Development  Corp.  ("New
             Allied"),  disclosure statements, made pursuant to  Exchange
             Act Rule 15c2-11,  and  press  releases  and  concluded that
             Sanders  and  the  other  respondent  violated the antifraud
             provisions of the Securities Act of 1933  ("Securities Act")
             and  the  Exchange  Act,  and of Rule 10b-5 thereunder.  The
             Commission  imposed  remedial   sanctions   on  Sanders  and
             required  him  to pay disgorgement of $115,195,  prejudgment
             interest on the  disgorgement  amount,  and  a  civil  money
             penalty  of  $1,000,000.  After  Sanders  failed  to pay the
             disgorgement  and penalty as ordered by the Commission,  the
             Commission initiated this action.

             For further information on this case, please see Exchange Act 
             Releases 37990 and 34274.
             

                                NEWS DIGEST SUMMARY

                      GRADY A. SANDERS ORDERED TO PAY $1,115,195
                                IN MICROCAP FRAUD CASE

                  On  February  2,  1999,  the  Securities  and  Exchange
             Commission  ("Commission")  obtained  a  federal court order
             requiring Grady A. Sanders of Los Angeles  to pay $1,115,195
             in   penalties   and   disgorgement  arising  from  Sander’s
             fraudulent  promotion of  a  microcap  company.  The  order,
             entered by the  Honorable  Louis F. Oberdorfer of the United
             States District Court for the District of Columbia, enforces
             payment of penalties and disgorgement  previously imposed by
             the  Commission  in  an  administrative proceeding.  Sanders
             consented to the entry of  the  District Court’s order.  The
             Commission filed its complaint, pursuant to Section 21(e) of
             the  Securities Exchange Act of 1934  ("Exchange  Act")  [15
             U.S.C.  §  78u(e)],  on  September  30,  1998. The complaint
             charged that Sanders failed to comply with  the terms of the
             prior Commission order imposing remedial sanctions issued in
             In  the  Matter  of New Allied Development Corp.,  Erica  J.
             Hull, and Grady A.  Sanders,  Administrative Proceeding File
             No. 3-8395 (November 26, 1996).
                  The  prior  Commission order  contained  findings  that
             Sanders and another respondent were responsible for material
             omissions  and  fraudulent   representations   concerning  a
             microcap  company’s,  New  Allied  Development  Corp.  ("New
             Allied"),  disclosure statements, made pursuant to  Exchange
             Act Rule 15c2-11,  and  press  releases  and  concluded that
             Sanders  and  the  other  respondent  violated the antifraud
             provisions of the Securities Act of 1933  ("Securities Act")
             and  the  Exchange  Act,  and of Rule 10b-5 thereunder.  The
             Commission  imposed  remedial   sanctions   on  Sanders  and
             required  him  to pay disgorgement of $115,195,  prejudgment
             interest on the  disgorgement  amount,  and  a  civil  money
             penalty  of  $1,000,000.  After  Sanders  failed  to pay the
             disgorgement  and penalty as ordered by the Commission,  the
             Commission initiated  this  action.  Securities and Exchange
             Commission  v.  Grady A. Sanders and Erica  J.  Hull,  Civil
             Action No. 98-2346-LFO (D.D.C.)


             ATTORNEY:      Thomas D. Carter
                            Central Regional Office (Denver)

             TELEPHONE:     303/844-1000