U.S. Securities and Exchange Commission

Litigation Release No. 17801 / October 23, 2002

Securities and Exchange Commission v. Emsanet Internet Services, Inc.,
Stefan Abel, Peter Restivo, Inc. D/B/A U.S. Funding, Peter C. Restivo,
Nicola A. Liantonio, Jr., and Cesare J. Iori, Jr., CV 02-532 (ADS )
(E.D.N.Y)

   The Securities and Exchange Commission announced that the Honorable
   Arthur D. Spatt, United States District Judge for the Eastern District
   of New York, entered final judgments against Stefan Abel ("Abel"),
   Emsanet Internet Services, Inc. ("Emsanet"), Peter Restivo, Inc. d/b/a
   U.S. Funding ("U.S. Funding"), Peter C. Restivo ("Restivo"), Nicola A.
   Liantonio, Jr. ("Liantonio") and Cesare J. Iori, Jr. ("Iori")
   (collectively, "Defendants"). The judgments permanently enjoin them
   from further violations of the registration and antifraud provisions
   of the federal securities laws (Sections 5(a), 5(c) and 17(a) of the
   Securities Act of 1933, Section 10(b) of the Securities Exchange Act
   of 1934 ("Exchange Act") and Rule 10b-5 thereunder) and additionally
   enjoin U.S. Funding, Restivo, Liantonio and Iori from acting as
   unregistered brokers (Section 15(a) of the Exchange Act). The
   judgments also order the Defendants to disgorge the following illicit
   profits Abel and Emsanet, jointly, $2,805,265 plus $536,448 in
   prejudgment interest; U.S. Funding, $465,000 plus $88,921.63 in
   prejudgment interest; and Restivo, Liantonio and Iori each, $155,000
   plus $29,640.54 in prejudgment interest. Finally, the judgments order
   the Defendants to pay the following civil penalties Abel and Emsanet,
   jointly, $100,000; U.S. Funding, $465,000; and Restivo, Liantonio and
   Iori each, $155,000.

   The Commission's complaint, filed on January 24, 2002, charged that
   Emsanet and its President, Abel, hired U.S. Funding, an unregistered
   broker-dealer, to sell shares of Emsanet stock in an unregistered
   private placement offering, and that Abel, Emsanet, U.S. Funding and
   its principles, Restivo, Liantonio and Iori, made materially false and
   misleading statements to investors in connection with the offer and
   sale of shares of Emsanet stock. The Defendants consented to the
   judgments without admitting or denying the allegations in the
   Commission's complaint.

   For further information, see (January 24, 2002), announcing the filing
   of the Commission's civil action against the Defendants.

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Modified 10/24/2002