U.S. SECURITIES AND EXCHANGE COMMISSION

   Litigation Release No. 16676 / September 1, 2000

   Securities and Exchange Commission v. Brian E. Pridgeon, Stephon A.
   Carradine and Craig L. Smith, Civil Action No. 00 -009375 FMC (RZx)
   (C.D. Cal.)

   On September 1, 2000, the Securities and Exchange Commission
   ("Commission") filed a complaint in the United States District Court
   for the Central District of California alleging illegal insider
   trading by Brian E. Pridgeon, a resident of San Jose, California and
   former Intel Corporation marketing engineer, Stephon A. Carradine, his
   cousin, and Craig L. Smith, Carradine's business partner. The
   complaint alleges that Pridgeon misappropriated material nonpublic
   information that he obtained from Intel regarding a transaction the
   company was negotiating with Ancor Communications Inc., that he used
   that information to trade in Ancor securities and that he tipped his
   cousin, Stephon A. Carradine, who in turn tipped his business partner,
   Craig L. Smith. Carradine and Smith are residents of Long Beach,
   California, where they own a Century 21 - Coastline Realty office.

   On the same day, the United States Attorney for the Central District
   of California criminally charged Pridgeon, Carradine and Smith for
   similar conduct alleged in the Commission's complaint.

   The complaint alleges that in the summer and fall of 1999, within
   months of first being employed at Intel, Pridgeon learned that the
   company planned to enter into an agreement with Ancor in which the two
   companies would collaborate to develop Intel's Spider chip for use in
   Ancor's products and Intel would purchase $14 million in Ancor stock.
   On December 7, 1999, Ancor and Intel announced their deal. The price
   of Ancor stock rose $23 1/8 per share or 36.7% on news of the
   announcement. The complaint further alleges that in the preceding four
   weeks, Pridgeon purchased 5,600 shares of Ancor stock, ultimately
   realizing illegal profits of over $137,000.

   The complaint further alleges that Pridgeon tipped his cousin,
   Carradine, who tipped his business partner, Smith. On December 2,
   1999, Smith and Carradine purchased speculative call options in a
   brokerage account they had opened in Smith's name the previous day.
   Smith and Carradine realized an illegal profit of $95,000 from the
   sale of those options.

   The Commission charged the defendants with insider trading in
   violation of the antifraud provisions of Section 10(b) of the
   Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The
   complaint seeks an injunction against the defendants from future