SECURITIES AND EXCHANGE COMMISSION

   Litigation Release No. 16964 / April 17, 2001

   Accounting and Auditing Release No. 1382 / April 17, 2001

   ., Civil Action No. 95-1583-CIV-T-23B (M.D.Fla.)

   On January 17, 2001, the Commission announced settlements with the
   remaining three defendants in this long-standing federal court
   litigation. In its original complaint, the Commission alleged that
   Excal misled the investing public by concealing the loss of three
   material customers, in six quarterly, one annual and one current
   report on Form 8-K filed in 1991 and 1992. The alleged misconduct
   involved the company's failure to disclose and its materially false
   statements with respect to the loss of Western Auto, Winston Tire and
   Sears, Roebuck & Co.; falsely recording an advance payment as a sale;
   and falsely recording revenue for Western Auto and offsetting that
   revenue with falsely recorded expenses.

   Without admitting or denying the Commission's allegations, the
   remaining defendants settled as follows Excal Enterprises, Inc. (final
   judgment permanently enjoining it from violating Sections 10(b),
   13(a), and 13(b)(2)(A) of the Securities Exchange Act of 1934 and
   Rules 10b-5, 13a-1, 13a-11, 13a-13, and 12b-20 thereunder); R. Park
   Newton, III (final judgment (i) permanently enjoining him from
   violating Section 17(a) of the Securities Act of 1933 and Sections
   10(b) and 16(a) of the Exchange Act and Rules 10b-5, 13b2-1, 13b2-2,
   16a-2 and 16a-3 thereunder; (ii) ordering disgorgement of $80,000 plus
   prejudgment interest of $75,000; and (iii) ordering payment of a
   $250,000 penalty); Frederic S. Schadt (final judgment (i) permanently
   enjoining him from violating Sections 10(b) and 13(d) of the Exchange
   Act and Rules 10b-5 and 13d-1 thereunder; (ii) ordering disgorgement
   of $30,305, plus prejudgment interest of $22,617; and (iii) ordering
   payment of a $30,305 penalty). These settlements conclude the
   Commission's litigation in this matter.

   (See the following related releases LR No. 14651 (September 26, 1995);
   In the Matter of Terry R. Kuntz and Richard J. Scheer, Admin. Proc.
   3-8831, In the Matter of Richard D. Russell, Administrative Proceeding
   3-8830; LR No. 16226 (July 30, 1999); In the Matter of Richard Brewer,
   Admin. Proc. No. 3-9943 (July 30, 1999))
     _________________________________________________________________

Modified 04/18/2001