SECURITIES AND EXCHANGE COMMISSION
                                   Washington, D.C.

             Litigation Release No. 16051 / February 2, 1999

             Accounting and Auditing Enforcement
             Release No. 1105 / February 2, 1999

             Securities and Exchange Commission v. Richard F. Rubin,
             Edward T. Creevy, Ronald H. Hollandsworth, and Kymberlee W.
             Kulis, 99 CV 239 (RCL) (D.D.C) (Feb. 2, 1999)

               SEC Sues Four Former Senior Executives and Employees of
                                    Donnkenny Inc.
                for Perpetrating A Financial Fraud and Insider Trading

                 The Securities and Exchange Commission today filed an
             enforcement action charging four former senior executives
             and employees of Donnkenny, Inc.(a manufacturer and marketer
             of women’s sportswear and other apparel(with perpetrating a
             financial fraud at the company and engaging in illegal
             insider trading.

                  The complaint alleges as follows:  Beginning in at
             least early 1994 and continuing until at least August 1996,
             Donnkenny’s former chief executive officer and chairman,
             Richard F. Rubin, fraudulently managed the company’s
             reported revenues and earnings.  Rubin directed a scheme
             whereby the company improperly reported revenue both on
             bogus transactions as well as on sales before they occurred.
             His purpose was to create the illusion that each quarter the
             company’s financial results met or exceeded projections and
             analysts’ expectations.  Assisting Rubin in the scheme were
             three company employees:  Donnkenny’s former chief financial
             officer, Edward T. Creevy, its former controller, Ronald H.
             Hollandsworth, and former assistant controller, Kymberlee W.
             Kulis.  Together these four individuals caused Donnkenny to
             improperly recognize revenue by:

                       *  holding open quarters to book out-of-period
                          shipments;

                       *  recording revenue on orders without shipping
                          the goods to customers;

                       *  recording fictitious sales from non-existent
                          contract work and through false journal
                          entries; and