SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17183 / October 12, 2001

   Securities and Exchange Commission v. 21^st Century Satellite
   Communications, Inc., Robert Byrch and Spencer Tyrrell, No.8
   01CV1875-T-30TGW (M.D. Fla., Tampa Division) (filed September 28,
   2001).

   The Securities and Exchange Commission (SEC) announced that on
   September 28, 2001, it filed a civil complaint against 21^st Century
   Satellite Communications, Inc. (21^st Century) for engaging in the
   fraudulent and unregistered sale of approximately $23 million in
   securities to investors nationwide. The complaint also named as
   defendants two senior officers of 21^st Century, Robert S. Byrch and
   Spencer G. Tyrrell. Simultaneously, and without admitting or denying
   the allegations against them, 21^st Century, Byrch and Tyrrell settled
   the cases against them by agreeing to permanent injunctions and other
   relief.

   According to the complaint, between 1997 and September 2000, 21^st
   Century sold approximately $23 million worth of promissory notes and
   purchase-leaseback agreements to more than 700 investors across the
   country. The company purported to sell the notes in order to purchase
   satellite television equipment that the company would use to install,
   maintain, and service private satellite television systems for closed
   communities throughout northern and central Florida. 21^st Century's
   offering materials claimed that the investments were fully secured by
   the value of the equipment purchased with the investors' funds. In
   fact, the investments were not fully secured; in addition, the company
   used approximately $6.1 million of investors' funds to pay undisclosed
   commissions to the sales agents who sold the securities. Most of these
   sales agents were independent insurance agents located in Florida and
   other parts of the United States, who sold the investments to their
   clients.

   In September 2000, 21^st Century defaulted on its promissory note
   payments, and the company filed voluntarily for reorganization under
   Chapter 11 of the United States Bankruptcy Code on May 8, 2001.

   Without admitting or denying any of the allegations in the SEC's
   complaint, 21^st Century, Byrch and Tyrrell agreed to settle the
   charges by consenting to the entry of permanent injunctive relief from
   further violations of the securities registration and antifraud
   provisions of the federal securities laws, specifically Sections 5(a),
   5(c) and 17(a) of the Securities Act of 1933 and Section 10(b) of the
   Securities Exchange Act of 1934 and Rule 10b-5 thereunder. In
   addition, 21^st Century consented to disgorge $6,110,736, representing