SECURITIES AND EXCHANGE COMMISSION

   Litigation Release No. 16388 / December 13, 1999

   Accounting and Auditing Enforcement Release No. 1213 / December 13,
   1999

   SECURITIES AND EXCHANGE COMMISSION V. SOLUCORP INDUSTRIES LTD.; JOSEPH
   S. KEMPROWSKI; PETER R. MANTIA; JAMES G. SPARTZ; ROBERT KUHN; VICTOR
   HERMAN; ARLE PIERRO; AND W. BRYAN FAIR, 99 Civ. 11965 (WCC) (SDNY)
   (December 13, 1999)

   SEC SUES SOLUCORP INDUSTRIES LTD. AND OFFICERS AND DIRECTORS
   FOR FRAUDULENT CONDUCT SPANNING FOUR YEARS

   On December 13, 1999, the Securities and Exchange Commission filed a
   civil injunctive action in the United States District Court for the
   Southern District of New York, alleging that senior officers and
   directors of Solucorp Industries Ltd., a Canadian company which
   develops, markets and licenses products used in decontaminating soil,
   engaged in a deliberate and systematic scheme to defraud investors
   over a four year period. Charged in the action are Joseph S.
   Kemprowski, a former officer and director of, and currently consultant
   to, Solucorp; Peter R. Mantia, the president and a director of
   Solucorp; James G. Spartz, a vice president and a director of
   Solucorp; Robert Kuhn, a former vice president of Solucorp; and Victor
   Herman, CPA, the former chief financial officer of Solucorp's two
   principal operating subsidiaries and the preparer of Solucorp's
   consolidated financial statements.

   The Complaint alleges that in at least ten press releases, several
   regulatory filings, an annual report and a letter to shareholders,
   Solucorp's senior management (1) claimed to have contracts that would
   generate over $350 million in revenues, when, in fact, the contracts
   did not exist or were subject to undisclosed material contingencies;
   and (2) materially overstated revenues for existing contracts by
   publicly claiming to have contracts that would generate over $7
   million in revenues, when, in fact, the contracts actually provided
   for the company to receive closer to $3 million. The Complaint also
   alleges that Solucorp senior management failed to timely announce the
   termination or postponement of numerous previously announced material
   contracts.

   The Complaint also alleges that senior management falsified Solucorp's
   financial statements by improperly recognizing as revenue license fees
   that were subject to material contingencies. Solucorp's improper
   recognition of license fees resulted in its filing with the Commission
   periodic, transition and interim reports, including financial