UNITED STATES SECURITIES AND EXCHANGE COMMISSION

   LITIGATION RELEASE NO. 16656 \ August 17, 2000

   SECURITIES AND EXCHANGE COMMISSION V. MERGER COMMUNICATIONS, INC.,
   JUKKA U. TOLONEN, AND DAVID A. DRAKE, Defendants. Civil Action No.
   H-00-2791, (USDC/SDTX/Houston)

   SEC FILES LAWSUIT AGAINST HOUSTON
   INTERNET STOCK PROMOTION FIRM

   The Securities and Exchange Commission (SEC) announced that on August
   15, 2000, it filed a civil complaint against Merger Communications,
   Inc. ("Merger") and its two owners, Jukka U. Tolonen and David A.
   Drake of Houston, Texas. The complaint alleges that Merger distributed
   press releases and other communications via the Internet touting
   numerous Over The Counter ("OTC") and NASDAQ quoted stocks without
   properly disclosing that the companies compensated Merger.
     * Merger Communications, Inc. is a Houston, Texas, based "financial
       promotion" company.
     * Jukka U. Tolonen, age 35, is a citizen of Finland, residing in
       Houston, Texas, and owner and president of Merger. Tolonen moved
       to Houston in 1995 to start Merger.
     * David A. Drake, age 37, is a resident of Houston, Texas, and
       executive vice president of Merger.

   The SEC alleges that in press releases and mass facsimile and e-mail
   distributions, Merger distributed highly favorable information
   concerning the issuers that was intended to create immediate increases
   in the trading volume and share-price of the issuers' stock. On its
   website and in communications with prospective clients, Merger boasted
   that its services often resulted in immediate increases in volume and
   share-price appreciation for its clients' securities. As compensation
   for its promotional efforts, Merger and its principals received shares
   of the touted issuer's stock. The amount of shares received was
   dependent upon the share price increase during Merger's promotional
   efforts.

   With respect to many of its touts, Merger did not disclose that its
   promotional and touting activity was bought and paid for by the
   company whose stock was being touted and that its investment advice,
   therefore, was not disinterested. For other touts, Merger disclosed
   generally that it "may" be compensated in stock or that it was hired
   by the issuer, but it did not fully disclose the nature and amount of
   compensation.

   The SEC also alleges that Merger's promotional efforts had the
   intended effect of increasing the issuer's stock price. For example,