UNITED STATES SECURITIES AND EXCHANGE COMMISSION

   Litigation Release No. 16721 / September 22, 2000

   Securities and Exchange Commission v. Royal Pictures, Inc., David
   Olinsky, and Robert Brent, Civil Action No. 00-3557-CIV-HUCK (S.D.
   Florida, filed September 22, 2000)

   The Securities and Exchange Commission ("Commission") announced today
   that it filed a federal civil action against Royal Pictures Inc.
   ("Royal"), a New York corporation headquartered in North Miami Beach,
   Florida, David Olinsky ("Olinsky"), its former CEO, Robert Brent
   ("Brent") and its former special advisor to the Board of Directors,
   for securities fraud. Royal is purportedly in the business of
   developing and producing motion pictures.

   Simultaneous with the filing of the Commission's Complaint
   ("Complaint"), Royal, Olinsky and Brent consented, without admitting
   or denying the allegations in the Complaint, to the entry of a Final
   Judgment enjoining them from future violations of Section 10(b) of the
   Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. In
   addition, Brent consented to the entry of a permanent bar prohibiting
   him from acting as an officer or director of a public company.
   Further, Olinsky and Brent consented to each pay a $10,000 civil
   penalty.

   The Complaint alleges that from approximately August 1998 through June
   1999, Royal at the direction of Olinsky and Brent, made false and
   misleading statements in press releases, in an investor brochure, and
   on the company's website. Specifically, the Complaint alleges that
   Royal made false and misleading statements concerning final
   negotiations that the Company purportedly had with various well-known
   actors and actresses for parts in Royal-produced films. For example,
   according to the Complaint, Royal falsely stated that it was in final
   negotiations with well-known artists such as Paul Newman, Alec Baldwin
   and Isabella Rossellini, among many others.

   In addition, the Complaint alleges that Royal made false claims it was
   backed by $24 million in film financing with an established film
   financing company when in fact, Royal had only raised $5 million and
   the established film financing company was a one-man company that had
   previously only financed one film. Finally, the Complaint alleges that
   Royal misrepresented and omitted material information concerning
   Brent's background and experience in a investor brochure distributed
   to investors during a road show. For example, the Commission alleges
   that the brochure failed to disclose that Brent is a twice-convicted
   felon.
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