UNITED STATES SECURITIES AND EXCHANGE COMMISSION


          Litigation Release No. 16127 \  April 29, 1999

          Accounting and Auditing Enforcement
          Release No. 1131 \ April 29, 1999

          SECURITIES AND EXCHANGE COMMISSION v. ASHOK K. CHALAKA AND DEEPAK
          N. KULKARNI, United States District Court for the Northern
          District of California, Civil Action No. C 99-20362 (RMW).

               The Securities and Exchange Commission today announced the
          filing of a settled lawsuit against Ashok Chalaka and Deepak
          Kulkarni alleging illegal insider trading and falsification of
          books and records.  The Commission’s complaint was filed on April
          27, 1999 in the Northern District of California.  Chalaka, a
          resident of Milpitas, California, acted as the Company’s vice
          president of sales and marketing from approximately June 1992
          until his termination on December 2, 1994.  Chalaka was later
          rehired and is currently employed at Cal Micro.  Kulkarni, a
          resident of Irvine, California, acted as director of
          international sales for Cal Micro from July 1992 until his
          resignation on October 22, 1994.

               The Commission’s complaint alleges that Chalaka and Kulkarni
          sold Cal Micro stock in the fourth quarter of fiscal year 1994
          knowing that the Company’s employees had falsified Cal Micro’s
          books and records, circumvented its internal accounting controls,
          and artificially inflated its reported revenues.  By their
          trading, Chalaka and Kulkarni illegally avoided losses of
          approximately $128,934, and $30,710, respectively.  The complaint
          also alleges that Chalaka and Kulkarni falsified certain of the
          Company’s books and records during fiscal year 1994.

               Simultaneously with the filing of the Commission’s
          complaint, Chalaka, without admitting or denying the allegations
          of the complaint, consented to the entry of an order:
          permanently enjoining him from violating Section 17(a) of the
          Securities Act, Sections 10(b) and 13(b)(5) of the Exchange Act
          and Rules 10b-5 and 13b2-1 thereunder;  directing him to pay
          disgorgement of $128,933.63, representing losses avoided as a
          result of his sales of Cal Micro stock, plus prejudgment interest
          in the amount of $31,582.00;  directing him to pay an insider
          trading penalty of $50,484.37;  and barring him for five years
          from acting as an officer or director of a public company.

               Kulkarni, without admitting or denying the allegations of
          the Commission’s complaint, consented to the entry of an order:
          permanently enjoining him from violating Section 17(a) of the
          Securities Act, Sections 10(b) and 13(b)(5) of the Exchange Act
          and Rules 10b-5 and 13b2-1 thereunder;  directing him to pay
          disgorgement of $30,710.25, representing losses avoided as a
          result of his sales of Cal Micro stock, plus prejudgment interest
          in the amount of $7,341.23;  and directing him to pay an insider
          trading penalty of $15,355.12.

               The Commission has previously settled enforcement actions
          against four former Cal Micro officers, including the Company’s
          former president, its former chief accounting officer, and two
          former vice-presidents of production.  In addition, the
          Commission is litigating a pending civil action against Chan M.
          Desaigoudar, Cal Micro's former chairman and chief executive
          officer, and Steven J. Henke, the Company’s former treasurer and
          principal financial officer.  Both Desaigoudar and Henke were
          convicted of criminal conspiracy, securities fraud, filing false
          statements with the Commission, and insider trading after a five-
          week jury trial in July 1998.

               For additional information, see Litigation Release Nos.
          15919 (September 30, 1998), 15846 (August 12, 1998),. 15690
          (March 31, 1998), and. 14776 (January 4, 1996); and see
          Accounting and Auditing Enforcement Release Nos. 1083 (September
          30, 1998), 1066 (August, 12, 1998), 1022 (March 31, 1998), and
          750 (January 4, 1996).