U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17436 \ March 26, 2002

   Federal Judge Permanently Enjoins ETS Payphones, Inc.

   Securities and Exchange Commission v. ETS Payphones, Inc. and Charles
   E. Edwards, Civil Action File No. 1 00-CV-2532-JTC (NDGA January 16,
   2002)

   The Securities and Exchange Commission ("Commission") announced that
   on January 16, 2002, Judge Jack T. Camp of the United States District
   Court for the Northern District of Georgia entered a final judgment of
   permanent injunction as to defendant ETS Payphones, Inc. ("ETS"),
   enjoining ETS from further violations of 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. ETS
   consented to the entry of the judgment without admitting or denying
   the allegations of the Commission's complaint. Further, the Court
   ordered disgorgement against ETS in the amount of $190 million plus
   prejudgment interest, but waived this amount due to defendant's
   demonstrated financial inability to pay. The Court did not order ETS
   to pay a civil penalty.

   The complaint, filed on September 30, 2000, alleged that ETS and its
   founder, Charles E. Edwards, engaged in fraud in the offer and sale of
   unregistered securities in the form of investment contracts, and
   alleged that the defendants promoted a massive fraudulent scheme
   through the use of insurance agents and over the Internet, in which
   ETS raised more than $300 million from more than 10,000 mostly elderly
   investors.

   For tips on how to avoid Internet "pump-and-dump" stock manipulation
   schemes, visit . For more information about Internet fraud, visit . To
   report suspicious activity involving possible Internet fraud, visit .

   See also L.R. (October 10, 2000); and L.R. (November 30, 2000).
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Modified 03/26/2002