SECURITIES AND EXCHANGE COMMISSION
   Washington, D.C.

   Litigation Release No. 16652 / August 14, 2000

   SECURITIES AND EXCHANGE COMMISSION v. TEXAS AMERICAN GROUP, INC., et
   al., Case No. 1 00CV01955 (D.D.C., filed August 11, 2000).

   SEC SUES TEXAS AMERICAN GROUP, INC. AND ITS
   SENIOR MANAGEMENT FOR MAKING FALSE STATEMENTS ABOUT THE COMPANY'S
   ASSETS AND ISSUING UNREGISTERED SECURITIES

   The Securities and Exchange Commission (the "Commission") announced
   today that it filed a complaint in the United States District Court
   for the District of Columbia against Texas American Group, Inc., a
   Texas corporation headquartered in Verdi, Nevada; Alan E. Humphrey,
   the company's President; Richard E. Lee, a Texas American Group
   director; and William Grosvenor, the company's Chief Executive
   Officer. The Commission's complaint alleges that in 1995 and 1996, the
   defendants repeatedly made false statements about the company's assets
   and financial condition in filings with the Commission, at investor
   seminars, and in promotional materials and advertisements. The
   complaint further alleges that during the same period, Texas American
   Group issued over 170 million unregistered shares of its common stock
   in sham offshore transactions.

   According to the complaint, the defendants claimed that Texas American
   Group owned the Amarilla Golf and Country Club, purportedly a $148
   million resort in the Canary Islands, even though Texas American Group
   never actually owned Amarilla. The complaint also alleges that Texas
   American Group falsely claimed to own various other assets, including
   internet lottery and casino games, a hotel development and management
   company, and a London pathology testing service. The complaint further
   alleges that Texas American Group falsely claimed in national
   advertisements recommending the stock that it had $300 million in
   assets.

   In addition, as alleged in the complaint, the defendants issued over
   170 million unregistered shares of Texas American Group stock to
   various offshore persons and entities, for the purported purpose of
   obtaining real estate and other assets. Notwithstanding the offshore
   nature of the transactions, the complaint alleges that the issuance of
   this stock did not qualify for the Regulation S safe harbor from
   registration because Texas American Group's actions constituted a
   scheme to temporarily place the securities offshore in order to evade
   the registration requirements of the federal securities laws. The
   complaint alleges that Texas American's Group's scheme to evade the
   registration requirements of the federal securities laws is evidenced