SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17593 / June 28, 2002

   Securities and Exchange Commission v. Terrance Michael O'Donohue and
   O'Donohue Fund Management, Inc., Civil Action No. 1 02 CV 1663 (N.D.
   Ga.)

   FINAL JUDGMENT OF PERMANENT INJUNCTION ENTERED AGAINST TERRANCE
   MICHAEL O'DONOHUE AND O'DONOHUE FUND MANAGEMENT, INC.

   The Securities and Exchange Commission ("Commission") announced today
   that on June  20, 2002, the Honorable Thomas W. Thrash, Jr. of the
   United States District Court for the Northern District of Georgia
   entered an Order of Permanent Injunction against Terrance Michael
   O'Donohue and O'Donohue Fund Management, Inc. O'Donohue and O'Donohue
   Fund Management consented, without admitting or denying the
   allegations in the complaint, to the entry of a final judgment that
   permanently enjoins them from violating Sections 5(a), 5(c), and 17(a)
   of the Securities Act of 1933, Section 10(b) of the Securities
   Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1)
   and 206(2) of the Investment Advisers Act of 1940. The Commission did
   not seek disgorgement or civil penalties because of the criminal
   sanctions already imposed.

   On June 17, 2002, the Commission filed a complaint with the United
   States District Court for the Northern District of Georgia which
   alleges that, from June 1995 until November 2000, O'Donohue raised
   almost $3 million for three limited partnerships from 53 investors.
   The complaint alleges that O'Donohue, who was a Georgia resident, or
   O'Donohue Fund Management, a Georgia corporation controlled by
   O'Donohue, were the general partners and made the investment decisions
   for the partnerships. According to the Commission's complaint,
   O'Donohue diverted over $2 million of investor funds, falsely stated
   to investors that their funds were invested, sent out false account
   statements indicating that investors' funds were earning returns, and
   otherwise engaged in a variety of conduct which operated as a fraud
   and deceit on investors. The complaint also alleges that O'Donohue and
   O'Donohue Fund Management sold unregistered securities.

   O'Donohue was convicted of three counts of mail fraud involving this
   same conduct. He was sentenced in the United States District Court for
   the Northern District of Georgia to serve 48 months in prison,
   followed by three years of supervised release, and was ordered to pay
   restitution of $2,468,912.41.

   See also (June 17, 2002)
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