UNITED STATES SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 17112 / August 31, 2001

   SECURITIES AND EXCHANGE COMMISSION v. LEE E. GAHR AND CHILL TECH
   INDUSTRIES, INC., Civ. No. CV-S-00-1088-KJD-RJJ (USDC Nevada)

   The Commission announced today that on August 21, 2001 the United
   States District Court for the District of Nevada entered default
   judgment against Lee E. Gahr, a Vancouver, British Columbia resident
   and former chief operating officer of Chill Tech Industries, Inc.
   ("Chill Tech"), a Nevada corporation, finding the defendant had
   violated the anti-fraud provisions of the federal securities laws by
   issuing false and misleading press releases between September 1998 and
   May 2000 and by selling the securities of Chill Tech without filing a
   registration with the Commission. The Court entered a permanent
   injunction against Gahr, ordered the defendant to pay a civil penalty
   of $246,409, and further ordered the defendant to disgorge $246,409 of
   profits from his fraudulent activities.

   The Commission filed a civil injunctive case on September 5, 2000
   alleging that between September 1998 and May 2000, Chill Tech and Gahr
   made numerous false and misleading statements through the company's
   Internet website (www.chilltech.com), various press releases, phony
   unsolicited faxes, and a magazine article. According to the complaint,
   these statements concerned (1) the "environmentally friendly" nature
   of, purported testing, and Chill Tech's ability to manufacture, the
   "Arctic Can," purportedly a self-cooling beverage can; (2) supposed
   sales presentations of the Arctic Can to various well-known companies
   and governmental entities and related revenue and earnings
   projections; (3) financial and stock projections, and predictions of
   future listing of Chill Tech's common stock on the Nasdaq Stock
   Market, Inc. ("Nasdaq"); and (4) Chill Tech's receipt of financing
   commitments and agreements to acquire substantial assets. The
   complaint alleged that this information was false and misleading
   because the Arctic Can contained Freon, an environmentally banned
   substance; Chill Tech neither tested nor had the ability to
   manufacture the Arctic Can; and the company's sales "presentations" at
   best consisted of unsolicited correspondence. The complaint further
   alleged that the financial projections lacked a reasonable basis
   because, among other reasons, they were predicated on fictitious
   business relations and undermined by Chill Tech's developmental stage
   status, lack of a viable product, and lack of significant assets or
   revenues. Further, according to the complaint Gahr sold his personal
   holdings of the Chill Tech common stocks into the resulting inflated
   market for profits of $246,409. This action was part of the fourth
   nationwide Internet fraud sweep conducted by the Commission since
   October 1998.