SECURITIES AND EXCHANGE COMMISSION

   LITIGATION RELEASE NO. 16946 / March 29, 2001

   UNITED STATES OF AMERICA V. MAURICIO A. GUTIERREZ. Criminal Action No.
   301-CR-072-D

   SECURITIES AND EXCHANGE COMMISSION v. SHARP CAPITAL, INC., ET AL.
   Civil Action No. 3-98-CV2792-G

   MAURICIO GUTIERREZ, FORMER PRESIDENT OF INVESTMENT ADVISER SHARP
   CAPITAL, INDICTED FOR FRAUD

   On March 6, 2001, Mauricio Gutierrez ("Gutierrez"), was indicted by a
   Dallas grand jury on 10 counts of fraud, including violations of the
   anti-fraud provisions of the Investment Advisers Act of 1940.
   Gutierrez was formerly president of Sharp Capital, Inc ("Sharp"), an
   investment adviser formerly registered with the Commission.

   The indictment charged that Gutierrez defrauded Sharp's clients though
   false claims that
     * Client funds would be invested in safe, non-speculative
       investments;
     * Client's principal would remain at low risk;
     * Clients would receive annual returns of between 7 percent and 11
       percent; and
     * Trade confirmations and statements sent to clients accurately
       reflected their account.

   Instead, the indictment charges that Gutierrez and Sharp invested
   client funds in high risk, speculative investments and also
   misappropriated client funds.

   The indictment is based upon the same conduct alleged in the
   Commission's civil complaint against Gutierrez and Sharp, filed
   November 30, 2000. In the Commission's prior civil fraud action,
   Gutierrez and Sharp were enjoined from further violations of the
   securities laws, and subjected to an asset freeze and the appointment
   of a Special Master. In this action, the Commission alleged that Sharp
   and Gutierrez lost as much as $80 million of client funds in
   unauthorized, highly leveraged investments in speculative securities
   of volatile emerging markets, including Russian debt instruments. The
   Commission charged Gutierrez and Sharp with violating the antifraud
   provisions of Section 17(a) of the Securities Act of 1933 (Securities
   Act) and Section 10(b) of the Securities and Exchange Act of 1934, and
   Rule 10b-5 thereunder, as well as Section 206 of the Investment
   Advisers Act of 1940. Since the filing of the Commission's complaint
   in November 1998, the Commission has revoked Sharp's registration as