SECURITIES AND EXCHANGE COMMISSION
   Washington, D.C.

   Litigation Release No. 16609 / June 26, 2000

   Accounting and Auditing Enforcement Release No.1279 / June 26, 2000

   SECURITIES AND EXHANGE COMMISSION V. DCI TELECOMMUNICATIONS, INC.,
   JOSEPH J. MURPHY, RUSSELL B. HINTZ, and GRACE P. MURPHY, Case No. 00
   Civ. 4664 (RWS) (S.D.N.Y. filed June 23, 2000)

            SEC FILES MICROCAP ACCOUNTING FRAUD CASE AGAINST DCI
   TELECOMMUNICATIONS, INC. AND TWO OF ITS OFFICERS, AND SETTLES RELATED
                        PROCEEDINGS AGAINST AUDITORS

   The Securities and Exchange Commission ("Commission") announced today
   that on June 23, 2000, it filed a microcap accounting fraud complaint
   against DCI Telecommunications, Inc. (`DCI") and its Chief Executive
   Officer, Joseph J. Murphy, and Chief Financial Officer, Russell B.
   Hintz. The complaint also names Murphy's wife, Grace P. Murphy, as a
   relief defendant who is alleged to have received tainted proceeds from
   the fraudulent conduct of the other defendants. This enforcement
   action follows a temporary trading suspension that the Commission
   ordered on May 3, 1999 based on questions raised regarding the
   accuracy and adequacy of DCI's financial statements. See Exchange Act
   Rel. No. 41358 (May 3, 1999).

   The Commission's complaint, filed in the United States District Court
   for the Southern District of New York, alleges that between March 1995
   and June 1999, DCI improperly accounted for seven acquisitions and
   grossly overvalued a purported $15 million contract and $5 million
   promissory note. According to the complaint, DCI's improper accounting
   caused the financial statements in five of DCI's Forms 10-K and twelve
   of its Forms 10-Q to be materially false and misleading. The complaint
   alleges that DCI's accounting fraud victimized investors who were
   deceived into believing DCI was a vibrant, high-growth
   telecommunications company, as well as the owners of several small
   businesses who sold their companies to DCI in exchange for
   near-worthless DCI stock.

   In addition, the complaint alleges that DCI used its false financial
   statements to raise $9 million in equity financing through Regulation
   D and Regulation S private placements and to acquire a distribution
   contract that DCI subsequently sold for an additional $9 million. The
   complaint further alleges that DCI improperly raised additional funds
   by using its employees as conduits to sell S-8 stock to the public and
   kick back the sale proceeds to DCI.