SECURITIES AND EXCHANGE COMMISSION

   LITIGATION RELEASE NO. 16343 / October 27, 1999

   SECURITIES AND EXCHANGE COMMISSION v. KENNETH SILVERMAN, Civil Action
   No. 99-CV-2844 (D.D.C.)

   SECURITIES TRADER TO BE ORDERED TO PAY $2.9 MILLION IN SETTLEMENT OF
   CHARGES OF SELLING UNREGISTERED SHARES OF SYSTEMS OF EXCELLENCE STOCK

   The Securities and Exchange Commission today filed a Complaint against
   Kenneth Silverman ("Silverman"), a professional securities trader,
   alleging that he illegally sold unregistered shares of Systems of
   Excellence, Inc. ("SOE") stock between August 1995 and October 1996.
   The Complaint, filed in United States District Court for the District
   of Columbia, alleges that in three separate transactions negotiated
   with SOE Chairman Charles O. Huttoe ("Huttoe"), Silverman acquired
   over 2.7 million shares of newly-issued SOE stock at a total cost of
   $600,000. Huttoe, who the Commission previously accused of
   orchestrating a massive market manipulation of SOE securities, used
   the funds, among other things, in connection with SOE's acquisition of
   a video teleconferencing company. Silverman soon sold nearly all of
   those newly issued shares for profits totaling $2,457,718. The
   Complaint further alleges that the shares Silverman sold were neither
   registered nor exempt from registration, and that he violated Section
   5(a) and 5(c) of the Securities Act of 1933.

   Simultaneously with the filing of the Complaint, Silverman, without
   admitting or denying the SEC's allegations, settled the action by
   consenting to a Court Order that (i) permanently enjoins him from
   violating Sections 5(a) and (c) of the Securities Act of 1933; (ii)
   requires him to disgorge his illegal profits of $2,457,718, plus
   prejudgment interest of $462,494, to a Court-appointed Receiver; and
   (iii) requires him to pay a civil penalty of $50,000.

   The Commission previously has made several announcements concerning
   these matters. See Lit. Rel. 15996 (December 9, 1998); Lit. Rel. 15906
   (September 24, 1998); Lit. Rel. 15888 (September 18, 1998); Lit. Rel.
   15617 (January 14, 1998); Lit. Rel. 15600 (December 22, 1997); Lit.
   Rel. 15571 (November 25, 1997); Lit. Rel. 15490 (September 12, 1997);
   Lit. Rel. 15286 (March 12, 1997); Lit. Rel. 15237 (January 31, 1997);
   Lit. Rel. 15185 (December 12, 1996); Lit. Rel. 15153 (November 7,
   1996); Securities Exchange Act Rel. No. 33791 (October 7, 1996).

   The Commission is cooperating with separate investigations in this
   matter carried on by the United States Attorney's Offices for the
   District of Nevada and the Eastern District of Virginia, and the
   Criminal Investigation Division of the Internal Revenue Service.