SECURITIES AND EXCHANGE COMMISSION

   Litigation Release No. 16354 / November 16 , 1999

   Accounting and Auditing Enforcement Release No. 1209 / November 16,
   1999

   SEC v. Accelr8 Technology Corporation, et. al., U.S. District Court,
   D. Colorado, No. Civ. 99-D-2203

   The Commission today charged a Denver software development company,
   Accelr8 Technology Corp. ("Accelr8") and three members of its senior
   management with fraudulently misrepresenting the capabilities of its
   computer software products developed to solve potential Year 2000
   problems in computer software programs and with filing false financial
   statements with the Commission.

   The Commission's complaint alleges that from 1997 through 1999,
   Accler8 and two senior officers, Thomas V. Geimer, Accler8's chief
   executive officer, chief financial officer, and chairman, and Harry J.
   Fleury, Accelr8's president, misrepresented the widespread utility of
   the company's Year 2000 software tools, called Navig8 2000. Accler8's
   Navig8 2000 software was allegedly created to analyze computer
   programs developed for the VAX/VMS computer system manufactured by
   Digital Equipment Corporation ("DEC"), which represent a small
   fraction of the programs that need remediation for Year 2000. The
   Commission alleges that Accler8, Geimer and Fleury failed to disclose
   that Navig8 2000 was developed to analyze DEC's VAX/VMS computer
   programs only and misrepresented that Navig8 2000 analyzed computer
   programs written for International Business Machine Corp.'s UNIX
   operating system and Microsoft Corporation's NT operating system. The
   Commission alleges that the misrepresentations appeared in Accler8's
   Commission filings, press releases, the company's website, and
   marketing materials distributed to investors.

   The Commission also alleges that from April 1998 through April 1999,
   Accelr8 filed annual and quarterly reports with the Commission
   containing false financial statements. The Commission alleges that in
   the quarter ended April 30, 1998, Accelr8 improperly booked revenue on
   three unfulfilled contracts that together materially overstated the
   company's quarterly revenue by approximately $1.2 million, $380,000 of
   which should never have been recognized. The Commission also alleges
   that Accelr8 improperly recognized maintenance revenue with the
   initial license fee on numerous sales transactions, materially
   overstating fiscal year 1998 revenue by $260,000. In the quarter ended
   January 31, 1999, Accelr8 allegedly improperly accelerated recognition
   of maintenance revenue on a major contract by $310,000 taking the
   company from a pre-tax loss of $228,000 to pre-tax income of $82,000.