SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17116 / September 5, 2001

   Accounting and Auditing Enforcement Release No. 1439 / September 5,
   2001

   SECURITIES AND EXCHANGE COMMISSION v. WILLIAM GRABSKE, ROBERT POCSIK
   AND RALPH WIDMAIER, United States District Court for the Northern
   District of California, Civil Action No. C 01-3355

   The Securities and Exchange Commission today filed suit in federal
   district court against the former Chief Executive Officer ("CEO") and
   two other former officers of Indus International, Inc. ("Indus" or the
   "Company"), for their roles in a 1999 financial reporting fraud that
   caused the Company to overstate its quarterly operating income by more
   than 300%. In a separate action, the Commission instituted
   administrative cease-and-desist proceedings against Indus and a fourth
   former employee for their roles in the scheme. Indus, a manufacturer
   of enterprise asset management software, was headquartered in San
   Francisco, California at the time of the fraud; the Company is now
   based in Atlanta, Georgia.

   Named in district court action were former President and CEO William
   Grabske, age 58, of Tiburon, California; former Chief Administrative
   Officer Robert Pocsik, age 49, of Sag Harbor, New York; and former
   Vice President of Manufacturing Industry Sales Ralph Widmaier, age 38,
   of Actworth, Georgia. Named in the administrative filing, in addition
   to Indus, was Carl Albano, age 52, former General Manager of Contract
   Operations.

   According to the Commission's filings, beginning in September 1999, as
   Indus approached the end of its third fiscal quarter, Grabske and
   Pocsik directed a scheme to fraudulently boost the Company's financial
   results to meet analysts' expectations. As part of this scheme, Pocsik
   instructed Widmaier and Albano to obtain orders from two Indus
   customers, even though the orders were subject to cancellation. The
   customer cancellation rights were documented in so-called side
   letters, which were then hidden from Indus' accounting staff. As a
   result, Indus improperly recognized revenue on these orders in the
   quarter ended September 30, 1999. The fraud caused Indus to overstate
   its revenue for the quarter by $3.7 million (8.1%) and its income from
   continuing operations by $2.4 million (300.8%). Each of the orders was
   later cancelled.

   The Commission's district court complaint charges Grabske, Pocsik and
   Widmaier with securities fraud (Section 10(b) of the Securities
   Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder);