U.S. SECURITIES AND EXCHANGE COMMISSION
   Washington, D.C.

   Litigation Release No. 16627 / July 14, 2000

   Accounting and Auditing Enforcement Release No. 1285 / July 14, 2000

   SECURITIES AND EXCHANGE COMMISSION v. SYSTEM SOFTWARE ASSOCIATES,
   INC., ROGER COVEY and JOSEPH SKADRA, Civ. No. 00C 4240 (July 13, 2000,
   N.D. Ill.)

   On July 13, 2000, the Securities and Exchange Commission filed a civil
   injunctive action against System Software Associates, Inc. ("SSA");
   its former Chief Executive Officer and Chairman of the Board, Roger
   Covey; and its former Chief Financial Officer, Joseph Skadra, alleging
   fraudulent accounting practices that resulted in massive investor
   losses.

   The Complaint alleges that CEO Covey and CFO Skadra caused SSA to
   misstate its financial results during its fiscal years 1994 through
   1996 by improperly reporting revenue on sales of a development-stage
   UNIX-language software product. Those customers who purchased SSA's
   UNIX product during the relevant period experienced severe and
   continuing difficulties with its functionality and performance and in
   many instances rejected the product. Because there existed significant
   uncertainties about customer acceptance of the product and
   collectibility of the contract price and significant vendor
   obligations remained, the earnings process was not complete and
   recognition of revenue on sales of the product was improper under
   applicable accounting standards.

   The Complaint also alleges that, during 1995 and 1996, in addition to
   the above fraudulent practice, SSA recognized approximately $52
   million in revenue from sales of its UNIX product that were subject to
   side letters or other material contingencies.

   According to the Complaint, defendants' fraudulent activities resulted
   in substantial losses to those public investors who purchased SSA
   stock during the period when the company's financial statements were
   misstated. During the relevant period, SSA's stock traded for as much
   as $45 per share, and the company's market capitalization reached
   $1.44 billion. In January 1997, after SSA's independent auditors
   required it to restate revenues for 1994 and 1995, SSA's stock price
   declined to approximately $10 per share. SSA is presently in a
   bankruptcy proceeding and its stock is virtually worthless.

   SSA, Covey, and Skadra are charged with violating or aiding and
   abetting violations of Section 17(a) of the Securities Act of 1933,