U.S. SECURITIES AND EXCHANGE COMMISSION

   Litigation Release No. 16671 / August 31, 2000

   SECURITIES AND EXCHANGE COMMISSION v. MARK S. JAKOB, Civil Action No.
   EDCV-00-687 VAP (Mcx) (C.D. Cal.)

   The Securities and Exchange Commission ("Commission") announced that
   on August 31, 2000, it filed a complaint against Mark S. Jakob
   ("Jakob") of El Segundo, California, for perpetrating an Internet hoax
   six days earlier. As a result of Jakob's scheme, in just 16 minutes, a
   Southern California high-tech company temporarily lost $2.2 billion in
   market value and investors suffered millions of dollars of trading
   losses. The Commission's complaint and documents filed in support of
   emergency relief allege
     * Jakob, age 23, until recently was an employee of Internet Wire,
       Inc., a press release distribution company, and a student at El
       Camino Community College.
     * On August 17 and 18, 2000, Jakob, expecting a decline in Emulex's
       stock price, sold short 3,000 Emulex shares at an average price of
       $80 per share. By August 24, 2000, however, Emulex stock had risen
       to over $113 per share, resulting in Jakob's having unrealized
       losses of over $97,000.
     * On the evening of August 24, 2000, Jakob, using an alias and
       purporting to act on Emulex's behalf, used a personal computer at
       El Camino Community College to send an e-mail instructing Internet
       Wire to issue an attached press release for Emulex.
     * As instructed, on August 25, 2000, at 9 30 am EDT, Internet Wire
       issued what purported to be an Emulex press release. The release
       stated that the Commission was investigating Emulex's accounting
       practices, that its CEO had resigned, and that it would revise its
       earnings to report a loss instead of a profit. The release was a
       complete hoax--Emulex did not issue, or authorize the issuance of,
       the release and all of the statements in the release were false.
     * The false press release's effect on the market was swift and
       dramatic. At 10 13 am EDT, a news service issued a headline
       containing information from the false release. In the next 16
       minutes, 2.3 million Emulex shares traded, and the price plummeted
       almost $61, resulting in Emulex's losing $2.2 in market
       capitalization. At 10 29 am EDT, NASDAQ halted trading after
       learning from Emulex that the release was false. Emulex resumed
       trading later that day after the hoax was discovered, and the
       price rebounded to close at $105.75.
     * On August 25, 2000, after the issuance of the false press release
       and just before the trading halt, Jakob covered his short
       position, realizing a profit of over $54,000. Minutes later, Jakob
       purchased 3,500 shares, which he sold on August 28, 2000, at a
       profit of over $186,000. In total, Jakob's profit from this hoax