U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17844 / November 15, 2002

   SECURITIES and EXCHANGE COMMISSION v. CALIFORNIA AUTOCARE CORPORATION,
   AUTOCARE AMERICORP, JOSEPH SANFELLIPO, JAMES E. GASPER, KIMBALL R.
   VANCE, JR., AND ELIHU M. SIGAL (Case No. ED-CV-02-1229 VAP (SGLx))
   (C.D. Cal)

   On November 14, 2002, the U.S. District Court in Riverside, California
   granted the Securities and Exchange Commission's application for a
   temporary restraining order regarding a telemarketing scheme run by a
   repeat securities law violator, Joseph Sanfellipo, 53, of Laguna
   Beach, California. The Commission's complaint alleges that Sanfellipo
   seeks to raise $9 million through the sale of stock in an auto repair
   company he controls, known as California Autocare Corporation of
   Carlsbad, California. The defendants have raised at least $500,000 in
   a two-month period. The complaint alleges that Sanfellipo falsely told
   investors over the phone, on the company website and in the company
   prospectus that (1) California Autocare Corporation and another
   Sanfellipo-controlled auto repair company, Autocare Americorp, had
   significant business relationships with Shell Oil Company, NAPA Auto
   Parts, Monroe, and Interstate Batteries, when in fact they did not;
   (2) there were 20 Autocare retail locations throughout California,
   when in fact there were actually only 5; and (3) the companies were
   negotiating sponsorship deals with Starbucks and Krispy Kreme
   Doughnuts, when in fact they were not.

   In addition to Sanfellipo and his companies, the other defendants are
   James E. Gasper, 64, of Solana Beach, California; Kimball R. Vance,
   Jr., 49, of La Quinta, California; and Elihu M. Sigal, 55, of Palm
   Desert, California. The Commission's complaint alleges that Gasper,
   Vance and Sigal sold California Autocare and Autocare Americorp stock
   through telemarketing at a sales office in Palm Desert, California.

   The court granted the Commission's application for a temporary
   restraining order; appointed a receiver over the companies; and froze
   the assets of, prohibited the destruction of documents by, and ordered
   accountings from the defendants. The temporary restraining order bars
   California Autocare Corporation, Autocare Americorp and Sanfellipo
   from committing securities fraud in violation of Section 17(a) of the
   Securities Act of 1933 ("Securities Act") and Section 10(b) and Rule
   10b-5 thereunder of the Securities Exchange Act of 1934 ("Exchange
   Act"). The Court's order also temporarily restrains California
   Autocare Corporation, Autocare Americorp, Sanfellipo, Gasper, Vance
   and Sigal from violating the securities registration provisions of
   Sections 5(a) and 5(c) of the Securities Act. The Court's order also
   temporarily restrains Gasper, Vance and Sigal from committing