UNITED STATES SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 17377 / February 25, 2002

   SECURITIES AND EXCHANGE COMMISSION v. MARK E. RICE D/B/A PRIMEX
   CAPITAL, Civ. No. 4 02CV00636 (USDC S.D. Texas)

   The Commission announced today that it has filed a federal court
   action against Mark E. Rice d/b/a Primex Capital ("Rice"). The
   Commission's complaint alleges that between September 1999 and July
   2000, Rice carried out "pump and dump" schemes to manipulate the stock
   of four microcap companies, including defendant Status Wines of
   Tuscany f/k/a Portalzone.com, Inc. ("Portalzone"). According to the
   Commission's complaint, the schemes for all four companies involved
   issuing unsolicited fraudulent "spam" e-mail messages. The
   Commission's complaint further alleges that for Portalzone and another
   company, the schemes also involved manipulative trading by Rice and
   issuing fraudulent press releases or promotional materials. According
   to the Commission's complaint, the false statements concerned, among
   other things, Portalzone's product (purportedly an advanced Internet
   search engine), its revenue sources and business relationships with
   third parties, as well as Rice's stock-picking track record and
   trading intentions. Moreover, the Commission's complaint alleges that
   the schemes enabled Rice, and his alter ego entities, proposed relief
   defendants Primex (USA), Inc. ("Primex") and Applegate Sentry, S.A.
   ("Applegate"), to sell restricted stock of three of the four companies
   into the resulting inflated market for total profits of approximately
   $900,367.

   The Commission's complaint alleges that Rice violated Sections 5(a),
   5(c) and 17(a) of the Securities Act of 1933 ("Securities Act"),
   Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act")
   and Rule 10b-5 thereunder, and Regulation M, Rule 101. As to Rice, the
   complaint seeks an injunction against Rice and disgorgement,
   prejudgment interest and third-tier civil penalties, and as to the two
   relief defendants, disgorgement and prejudgment interest. Without
   admitting or denying the Commission's allegations, Rice has consented
   to the entry of an order that would enjoin him from future violations
   of the foregoing provisions and directing him to pay disgorgement and
   prejudgment interest in an amount to be determined after the
   completion of the Commission's discovery in this action; and in which
   he would agree to the Court's continuing jurisdiction over the action
   for the purpose of determining whether to assess civil penalties
   against him.

   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 .