SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.

LITIGATION RELEASE NO. 17561 / June 12, 2002

   ACCOUNTING AND AUDITING ENFORCEMENT RELEASE NO. 1576 / June 12, 2002

   SECURITIES AND EXCHANGE COMMISSION v. PATRICK O. WHEELER, STEVEN S.
   GALLERS, and ROBERT L. CARBERRY, Case No. 02-60131-CIV-GRAHAM (S.D.
   Fla.)

            CYBERGUARD CORPORATION'S FORMER CONTROLLER SETTLES
            SEC FRAUD CHARGES AND AGREES TO PAY $50,000 PENALTY

   On June 6, 2002, the United States District Court for the Southern
   District of Florida entered a final judgment against Steven S.
   Gallers, the former controller and assistant treasurer of CyberGuard
   Corporation, in an accounting fraud case filed by the Securities and
   Exchange Commission in January 2002. Without admitting or denying the
   allegations of the Commission's complaint, Gallers consented to the
   entry of the final judgment, which permanently enjoins him from
   violating the securities antifraud, books-and-records, and internal
   controls provisions of Sections 10(b) and 13(b)(5) of the Securities
   Exchange Act of 1934 and Rules 10b-5 and 13b2-1 thereunder, bars him
   from acting as an officer or director of a publicly-traded company,
   and requires him to pay a $50,000 civil penalty.

   The Commission's complaint, filed on January 30, 2002, alleged that
   Gallers and two others engaged in securities fraud and other
   violations while officers of CyberGuard, a Fort Lauderdale-based
   company in the business of developing and selling computer network
   security systems. According to the complaint, Gallers improperly
   recorded revenue from contingent transactions and accelerated revenue
   recognition on after-quarter shipments of CyberGuard products over
   seven fiscal quarters ended March 31, 1998, and knew, or was reckless
   in not knowing, that CyberGuard's financial results were materially
   misstated as a result. One of the other defendants - Robert L.
   Carberry, who was CyberGuard's former chairman, chief executive, and
   president - previously settled with the Commission. (Jan. 30, 2002).
   The case against the remaining defendant - Patrick O. Wheeler, who was
   CyberGuard's former chief financial officer and vice president of
   North American sales, and is the company's current vice president of
   business development - is still pending.
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Modified 06/12/2002