Securities and Exchange Commission
Washington, D.C.

Litigation Release No. 17394 / March 5, 2002

   Accounting and Auditing Enforcement Release No. 1512

   SEC v. Kenneth W. Haver, U.S. District Court for the Northern District
   of Ohio, Akron Division, Docket No. 5 02CV414

   In the Matter of Telxon Corp., Gary L. Grand and James G. Cleveland,
   Administrative Proceeding File No. 3-10715

   SEC SUES FORMER TELXON CFO KEN HAVER FOR ACCOUNTING FRAUD; TELXON AND
   TWO FORMER OFFICERS CONSENT TO CEASE-AND-DESIST ORDER

   The Securities and Exchange Commission announced that it has sued
   Kenneth W. Haver, the former Chief Financial Officer of Telxon Corp.,
   for fraud in connection with the company's financial statements and
   earnings press release for the quarter ended September 30, 1998. The
   action alleges that Haver, age 43, of Akron, Ohio, intentionally or
   recklessly caused Telxon to improperly recognize revenue of $23.1
   million from three significant transactions. Haver's improper conduct
   inflated Telxon's quarterly revenues by 23% and quarterly profits by
   270%, from a loss of $7.3 million to a falsely stated profit of $4.1
   million. The suit also alleges that Haver aided and abetted reporting,
   books and records, and record keeping violations by Telxon related to
   the September 1998 quarter and related to additional violations by
   Telxon from its two previous fiscal years, involving a further $16.6
   million of profits that were restated. Telxon is headquartered in
   Akron, Ohio and, prior to being acquired by another company in
   December 2000, was a leading manufacturer of hand held computers and
   related systems.

   The Commission's complaint, filed in the U.S. District Court for the
   Northern District of Ohio, alleges that Haver's fraudulent actions
   took place shortly after Telxon had rejected merger offers from a
   competitor. One of the September 1998 transactions involved a $2
   million sale of software that was not yet written. A second
   transaction involved a $7 million lease-purchase by a near-bankrupt
   customer and Haver's agreement, on Telxon's behalf, to guarantee the
   customer's lease payments. The third transaction involved a $14.1
   million "sale" to a financing company and Haver's agreement, on
   Telxon's behalf, to accept unlimited return of the product. The $16.6
   million in profits restated for Telxon's fiscal years prior to
   September 1998 concerned Haver's failure, as Chief Financial Officer,
   properly to account for several customers that had delayed or disputed
   various payments due Telxon.