SECURITIES AND EXCHANGE COMMISSION

   LITIGATION RELEASE NO. 16314 / September 29, 1999

   SECURITIES AND EXCHANGE COMMISSION v. JEFFREY P. EHRLICH, MICHAEL E.
   EHRLICH, HOWARD S. GROSSMAN, JOSEPH C. PALERMO and ANTHONY P.
   VASSALLO, Civil Action No. 99 CV 10067 (S.D.N.Y.) (filed September 28,
   1999)

   SEC Sues Jeffrey P. Ehrlich, Michael E. Ehrlich, Howard S. Grossman,
   Joseph C. Palermo and Anthony P. Vassallo for Insider Trading

   On September 28, 1999, the Commission filed a complaint in the United
   States District Court for the Southern District of New York against
   Jeffrey P. Ehrlich, Michael E. Ehrlich, Howard S. Grossman, Joseph C.
   Palermo and Anthony P. Vassallo, alleging insider trading in the
   securities of Edison Brothers Stores Corporation ("Edison Brothers")
   prior to a negative news announcement by Edison Brothers on August 29,
   1995.

   The Commission's complaint alleges that, on or about August 17, 1995,
   on a confidential basis, Edison Brothers approached CIT/Business
   Credit to help restructure its debt. The complaint further alleges
   that, several days later, on August 21, 1995, Anthony P. Vassallo,
   then an Assistant Vice President and loan officer at The CIT
   Group/Business Credit, Inc., in violation of his fiduciary duty to his
   employer, tipped his long-time friend, Jeffrey P. Ehrlich, about
   Edison Brothers' deteriorating financial condition. According to the
   complaint, immediately after Vassallo's illegal tip, Jeffrey Ehrlich
   purchased short-term, out-of-the-money Edison Brothers put options,
   betting that the price of Edison Brothers stock would decrease
   significantly and quickly. The complaint alleges that Jeffrey Ehrlich
   then passed the information on to his brother, Michael P. Ehrlich, who
   also bought short-term, out-of-the-money Edison Brothers put options.
   That same day, either or both of the Ehrlichs allegedly tipped their
   mutual friend, Joseph C. Palermo. Palermo allegedly then purchased
   Edison Brothers put options and tipped his brother. The complaint also
   alleges that Michael Ehrlich tipped Howard S. Grossman, who sold
   Edison Brothers stock short. After Edison Brothers issued a series of
   negative announcements on August 29, 1995, Edison Brothers common
   stock declined by more than 40%. The traders then liquidated their
   positions, realizing total profits of approximately $124,000. The
   complaint alleges that, shortly thereafter, Jeffrey Ehrlich gave
   $8,000 of his trading profits to Vassallo.

   The Commission's complaint seeks injunctions against Jeffrey Ehrlich,
   Michael Ehrlich, Howard Grossman, Joseph Palermo and Anthony Vassallo
   for violating Section 10(b) of the Securities Exchange Act of 1934