SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.

Litigation Release No. 17115 / September 5, 2001

   Accounting and Auditing Enforcement Release No. 1436 \ September 5,
   2001

   SEC SETTLES CIVIL INJUNCTIVE ACTION AGAINST THREE FORMER OFFICIALS OF
   SPECTRUM INFORMATION TECHNOLOGIES, INC.

   SEC v. Peter T. Caserta, Salvatore Marino and Dana C. Verrill, U.S.
   District Court for the Eastern District of New York, Civil Action No.
   97-CV-7091.

   The Securities and Exchange Commission announced today that it has
   accepted offers of settlement from three former officials of Spectrum
   Information Technologies, Inc., Peter T. Caserta (former president and
   chief executive officer), Salvatore Marino (former chief financial
   officer) and Dana C. Verrill (former chairman of the board of
   directors), to resolve a previously-filed civil injunctive action. The
   Commission's complaint, filed in the U.S. District Court for the
   Eastern District of New York on December 3, 1997, alleges that Caserta
   and Marino engaged in a fraudulent scheme to inflate Spectrum's
   financial results and stock price. According to the complaint, at the
   direction of Caserta and Marino, Spectrum made false statements to the
   press, and improperly accounted for certain licensing agreements in
   its filings with the Commission, thereby misleading investors into
   thinking that Spectrum had earned millions of dollars in licensing
   fees and as a result, had experienced its first two consecutive
   profitable quarters. In addition, the complaint alleges that Caserta
   falsely stated to the press that an agreement with AT&T was worth
   "hundreds of millions of dollars." The complaint further alleges that
   Caserta and Marino profited from the scheme by selling large amounts
   of Spectrum stock at inflated prices while in possession of this
   material non-public information. The complaint also alleges that
   Caserta and Verrill devised a scheme that enabled Spectrum to
   improperly funnel large blocks of unregistered Spectrum stock to the
   public through the company's employee stock option plan. The
   Commission's litigation release announcing the filing of the complaint
   can be found at www.sec.gov/litigation/litreleases .

   Without admitting or denying the allegations in the complaint,
   Caserta, Marino and Verrill each consented to the entry of final
   judgments permanently enjoining them from violating and/or aiding and
   abetting violations of the federal securities laws, and ordering them
   to pay disgorgement, interest and/or civil penalties. Caserta was
   enjoined from violating Sections 5(a), 5(c) and 17(a) of the