SECURITIES AND EXCHANGE COMMISSION
                                  WASHINGTON, D.C.

          Litigation Release No.16049 / February 1, 1999

          SECURITIES  AND  EXCHANGE  COMMISSION  v. CHARLES L. BRUMFIELD et
          al., United States District Court for the  Southern  District  of
          New York, 95 Civ. 9283 (JES)

               The Commission has obtained liability findings and a
          settlement against three of the last four remaining defendants in
          its civil enforcement proceedings against twenty people who
          allegedly traded securities while in possession of material,
          nonpublic information concerning AT&T’s plans to acquire four
          companies between 1988 and 1991.  The Commission alleged that the
          defendants obtained the information, directly or indirectly, from
          Charles Brumfield, a former vice-president in AT&T’s labor
          relations department.

               Shortly before trial, on January 6, 1999, the United States
          District Court for the Southern District of New York approved a
          settlement reached by the Commission with defendant Warren F.X.
          Smith, Sr.  On January 11, 1999, the first day of trial,
          defendant Robert Allen stipulated to civil liability for insider
          trading under Sections 10(b) and Rule 14(e) of the Securities
          Exchange Act of 1934 and Rules 10b-5 and 14e-3.  After a two-and-
          a-half week trial, on January 26, 1999, a jury rendered a verdict
          finding that defendant Sharon Seiden engaged in insider trading
          in violation of Section 14(e) of the Exchange Act and Rule 14e-3.
          The jury verdict also found Seiden and defendant John Lynch not
          liable for insider trading under Section 10(b) of the Exchange
          Act and Rule 10b-5.

               The specific allegations against these defendants are as
          follows:

               Warren F.X. Smith, Sr.  The Commission alleges that Smith
          received inside information on two AT&T takeover targets: Digital
          Microwave Corporation and Teradata Corporation.  According to the
          complaint, Charles Brumfield passed the information to Thomas
          Alger, a close friend of Brumfield’s who also worked in AT&T’s
          labor relations department, and Alger in turn tipped, among
          others, Robert Flanagan, an old friend.  In the case of Digital
          Microwave, the Commission alleges that in March 1991 Robert
          Flanagan tipped his attorney, defendant John Lynch, who then