U.S. SECURITIES AND EXCHANGE COMMISSION

   Litigation Release No. 16686/September 6, 2000

   SEC v. , Civ. No. CV-00-09456 DT (Manx) (C.D. Cal.)

   Today, the Securities and Exchange Commission sued Michael A. Furr, a
   resident of Trabuco Canyon, California, and alleged that Furr
   orchestrated an Internet stock manipulation scheme as a paid promoter
   of penny stocks. The Commission charges that from January 1999 through
   January 2000, Furr disseminated false information regarding at least
   26 microcap companies through a free website, printed research
   reports, emails, and national radio show broadcasts. The Commission
   alleges that Furr made false revenue and stock price projections and
   misstated compensation he received for touting the companies. Further,
   the Commission alleges that Furr engaged in a fraudulent pattern of
   trading securities of the companies he touted through which he
   realized proceeds of at least $3.4 million. This action is part of the
   fourth nationwide Internet fraud sweep conducted by the Commission
   since October 1998.

   In the Complaint, the Commission charged that Furr drafted and
   published on his website, www.wallstreetresearch.net, research reports
   containing false information that he repeated in e-mail messages and
   radio broadcasts. The reports, recommending the purchase of the
   companies' stock, contained false revenue and stock price projections
   on at least four companies that exceeded the projections Furr received
   from those companies. The Commission asserted that, in one or more
   instances, Furr falsely characterized company assets, company
   officers, and business ventures. Additionally, Furr misstated the form
   and amount of compensation he received for touting the companies.
   Although Furr disclosed in his reports that he received $4,995 for
   writing and distributing the reports, the Commission claims Furr
   requested and received compensation in the form of stock worth
   substantially more than the $4,995 disclosed. Furr's
   misrepresentations, which appeared on the Internet, fueled a dramatic
   rise in both the price and the trading volume of most of the touted
   companies' common stock. Finally, shortly after touting the
   securities, Furr sold the entire position of stock he received as
   compensation and realized proceeds exceeding $3.4 million. Furr failed
   to disclose his practice of liquidating his position in the securities
   he recommended.

   The Commission is seeking an injunction against Furr to prevent
   violations of Section 10(b) of the Securities Exchange Act of 1934 and
   Rule 10b-5 promulgated thereunder and Section 17(b) of the Securities
   Act of 1933. The Commission is further seeking disgorgement of his
   wrongfully obtained trading profits and a civil money penalty.