SECURITIES AND EXCHANGE COMMISSION

   LITIGATION RELEASE NO. 16616 / June 30, 2000

 Court Enters Preliminary Injunction Against Fraudulent Internet A "Virtual
               Stock Exchange" and Continues Freeze of Assets

   On June 29, 2000, after a hearing, the United States District Court
   for the District of Massachusetts entered a Preliminary Injunction and
   Order for Other Relief in a case against SG Limited and SG Perfect
   Limited, based on allegations that SG Limited operated a massive
   pyramid scheme involving the offering of investments in a so-called
   "virtual company" over the Internet. The Court's Order, among other
   things, continues the previously ordered freeze of assets of SG and SG
   Perfect Limited until the case is completed. At the conclusion of the
   case, if defendant is found liable, the Commission has asked the court
   to order distribution of the frozen proceeds of the fraud to injured
   investors.

   The Commission"s complaint, which was filed on June 9, alleges that SG
   Limited, based on the Caribbean island of Dominica, operates a website
   under the name "StockGeneration, promising investors a risk-free,
   guaranteed return of 10% per month, or 215% per year on a compounded
   basis. SG allegedly described itself as a "virtual stock exchange"
   offering investments in the stock of several "virtual companies,"
   including one referred to as the "privileged company" whose shares
   "only rise" and generate the guaranteed 10% monthly return. The
   Commission alleged that the investment program, which raised hundreds
   of thousands, if not millions, of dollars was actually nothing more
   than a classic pyramid scheme. The Commission further alleged that
   investors did not receive the guaranteed return and have not even been
   able to recover their initial investments. According to the
   Commission's complaint, in fact, in recent weeks, SG informed
   investors that their purported guaranteed, risk-free investments had
   been reduced to only pennies on the dollar. The Commission alleges
   that, even while unable to meet its obligations to existing investors,
   SG continues to offer its investment program on the StockGeneration
   website, still promising a risk-free guaranteed 10% monthly return.

   The Commission's complaint alleges that SG Limited has violated the
   general antifraud and securities registration provisions of the
   federal securities laws -- that is, Sections 5(a) and (c) and 17 (a)
   of the Securities Act of 1933 and Section 10(b) of the Securities
   Exchange Act of 1934 and Rule 10b-5 thereunder. The Commission's
   complaint also charged as a relief defendant an affiliated company, SG
   Perfect Limited, which was unjustly enriched through the receipt of
   over $1 million of the money raised from the StockGeneration scheme.
   On June 9, 2000, the U.S. District Court for the District of