SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.

LITIGATION RELEASE NO. 17212 / October 31, 2001

   SECURITIES AND EXCHANGE COMMISSION v. MICHAEL R. HENDRIX, et al., Civ.
   Action No. C-00-20655 (JW) (N.D. Cal.)

      SEC OBTAINS SETTLED FINAL JUDGMENT AGAINST ANOTHER DEFENDANT IN
                       XYLOGICS INSIDER TRADING CASE

   On October 26, 2001, the United States District Court for the Northern
   District of California entered a settled final judgment against John
   H. Oh, one of the remaining defendants in the Commission's insider
   trading case arising from unlawful purchases of Xylogics, Inc. stock
   in September 1995. The final judgment permanently enjoins Oh from
   violating the antifraud provisions of Section 10(b) of the Securities
   Exchange Act of 1934 and Rule 10b-5 thereunder, and requires him to
   disgorge $47,570.31 in illicit profits and interest. Based on Oh's
   documented financial condition, however, the Court waived payment of
   Oh's disgorgement obligation beyond $36,000, permitted him to pay his
   obligation in installments over a period of one year, and did not
   impose a civil penalty. Oh consented to entry of the final judgment
   without admitting or denying the allegations in the Commission's
   complaint.

   The Commission's complaint, originally filed in June 2000 and later
   amended in October 2000, charges 12 people with insider trading and
   tipping before a September 6, 1995 announcement that Bay Networks,
   Inc. would acquire Xylogics. It alleges that defendant Michael R.
   Hendrix, while working for Bay Networks, learned that Bay Networks
   would acquire Xylogics, and then traded heavily in Xylogics stock and
   tipped numerous friends and former colleagues who also traded.
   According to the complaint, one of Hendrix's tippees, San H. Mai, in
   turn tipped Oh, who immediately bought $100,000 worth of Xylogics
   stock - more than twice his annual salary at the time - on margin and
   with money borrowed from his friend and co-defendant Nick S. Park.
   After Bay Networks' acquisition of Xylogics became public the
   following day, Oh realized $34,437.50 in profits from his purchase of
   Xylogics stock. (See Litigation Release No. 16591/June 15, 2000.)

   With this settlement, the Commission has now obtained final judgments
   against 8 of the 12 defendants in the case. The other defendants who
   previously settled with the Commission are Jeffrey S. Summerlin, James
   A.S. Lewis, San H. Mai, Bich Thi Hoang, Linh Ngoc Vu, Timothy J.
   Helms, and Raymond L. Helms. Details regarding those settlements can
   be found in Litigation Release Nos. 16591 (June 15, 2000) and 16999
   (May 14, 2001). The four remaining defendants - Michael R. Hendrix,