UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17615 / July 15, 2002

     DEFENDANTS IN TEL-ONE, INC. PUMP-AND-DUMP SCHEME AGREE TO PAY MORE
               THAN $2 MILLION IN DISGORGEMENT AND PENALTIES

                  Court also Imposes Permanent Injunctions

   Securities and Exchange Commission v. Tel-One, Inc., et al., No. 8
   02-CV-120-T-30TGW, (M.D. Fla., filed January 22, 2002).

   The Securities and Exchange Commission (SEC) announced the settlement
   of most of its claims arising out of its January 2002 emergency action
   and trading suspension against Tel-One, Inc. and certain of its
   principals and promoters. The settlement, which the Court entered on
   July 12, 2002, imposes more than $2 million in disgorgement and
   penalties, and permanently enjoins all of the defendants from future
   violations of the antifraud provisions of the federal securities laws.
   The SEC also announced that it intends to ask the court to appoint a
   claims administrator to disburse the defendants' ill-gotten gains to
   investors who were victimized by the scheme.

   The SEC's complaint, filed on January 22, 2002, alleged that Tampa,
   Florida-based Tel-One, two of its major shareholders, George Carapella
   (Carapella) and Alan Lipstein (Lipstein), and Tel-One's president, W.
   Kris Brown (Brown), used a Tampa-based stock promoter, Media Broadcast
   Solutions, Inc. (Media Broadcast), to place fraudulent advertisements
   in local and national newspapers, including the January 16, 2002
   edition of the Wall Street Journal. The SEC's complaint alleged that
   defendants Carapella and Lipstein have recent felony convictions, and
   sold hundreds of thousands of Tel-One shares after they had
   successfully inflated Tel-One's stock price.

   In addition to consenting to the entry of permanent injunctions from
   future violations of Section 17(a) of the Securities Act of 1933 and
   Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
   thereunder, the defendants agreed to the following monetary relief
     * Carapella and Lipstein, jointly and severally with certain relief
       defendants, will disgorge $909,670, plus prejudgment interest,
       representing their profits from their sales of Tel-One stock;
     * Carapella and Lipstein will pay civil money penalties of $75,000
       and $50,000, respectively;
     * LaFauci will disgorge the $8,635 that he profited from his Tel-One
       stock sales, plus prejudgment interest, and will, together with
       Media Broadcast, pay a civil money penalty of $30,000; and
     * Brown will pay a civil money penalty of $30,000.