UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17630 / July 24, 2002

   00Civ.9680 (RO)(S.D.N.Y.)

   HEDGE FUND ADVISER SETTLES SEC CIVIL ACTION

   The Securities and Exchange Commission announced today that it has
   settled its civil action against Michael L. Smirlock, the Chairman,
   majority shareholder and former President and CEO of LASER Advisers,
   Inc., an investment adviser. In its complaint in this action, the SEC
   alleged, among other things, that from December 1997 to June 1998,
   Smirlock engaged in an unlawful scheme to falsely inflate the value of
   an investment portfolio that he managed for three hedge funds, and
   that certain investors in the hedge funds purchased interests while
   Smirlock conducted the scheme. The complaint also alleged that by
   engaging in this conduct Smirlock, a recidivist, violated a prior
   Commission cease-and-desist order which, among other things,
   prohibited Smirlock from violating the antifraud and recordkeeping
   provisions of the Investment Advisers Act of 1940. See, Litigation
   Release No. 16838 (December 21, 2000).

   Simultaneous with the filing of the Commission's complaint, the United
   States Attorney for the Southern District of New York filed criminal
   charges against Smirlock arising from the same conduct charged in the
   Commission's complaint. Smirlock pleaded guilty recently to two counts
   of securities fraud and was sentenced to four years incarceration and
   ordered to pay $12.6 million in restitution. See, Litigation Release
   No. 17536 (May 28, 2002).

   Without admitting or denying the allegations against him, Smirlock has
   settled the SEC civil action by agreeing to the entry of a final
   judgment that permanently enjoins him from violating Section 10(b) of
   the Securities Exchange Act of 1934 and Rule 10b-5 thereunder,
   causing, aiding or abetting violations of Sections 206(1), 206(2) and
   204 of the Investment Advisers Act of 1940 and Rules 204-2(a)(16) and
   204-2(e)(3) thereunder, and violating the prior Commission Order.
   Smirlock has also agreed to settle administrative proceedings under
   Section 203(f) of the Investment Advisers Act of 1940, to be
   instituted after the entry of the injunction, in which the Commission
   orders that Smirlock be permanently barred from association with any
   investment adviser.

   LASER Advisers also settled the Commission charges today. Without
   admitting or denying the allegations against it, LASER Advisers has
   agreed to the entry of a final judgment that permanently enjoins the
   firm from violating Section 10(b) of the Securities Exchange Act of