U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.

Litigation Release No. 17770 / October 7, 2002

   Accounting and Auditing Enforcement Release No. 1641 / October 7, 2002

   SECURITIES AND EXCHANGE COMMISSION v. SYSTEM SOFTWARE ASSOCIATES,
   INC., ROGER COVEY and JOSEPH SKADRA, Civ. No. 00C 4240 (N.D. Ill.)

   FORMER TOP OFFICERS OF SYSTEM SOFTWARE ASSOCIATES, INC. SETTLE SEC
   CHARGES; COVEY AND SKADRA CONSENT TO FRAUD-BASED INJUNCTIONS, COVEY TO
   PAY $316,205 IN DISGORGEMENT AND CIVIL PENALTIES.

   On October 3, 2002, the U.S. District Court for the Northern District
   of Illinois entered final judgments against the former Chairman and
   Chief Executive Officer of System Software Associates, Inc. ("SSA"),
   Roger Covey, and SSA's former Chief Financial Officer, Joseph Skadra,
   in litigation brought by the Securities and Exchange Commission in
   July 2000. Without admitting or denying the allegations in the
   Commission's complaint, Covey and Skadra agreed to the entry of
   judgments (1) permanently enjoining each of them from violating or
   aiding and abetting violations of antifraud, reporting, books and
   records, and internal controls provisions of the federal securities
   laws, and (2) requiring Covey to pay $216,205.38 in disgorgement and
   prejudgment interest and $100,000 in civil penalties. The Commission
   has agreed to waive disgorgement and to not seek a civil penalty from
   Skadra based on representations Skadra made in his sworn financial
   statement.

   According to the Commission's complaint, Covey and Skadra caused SSA
   to misstate its financial results during its fiscal years 1994 through
   1996 by improperly reporting revenue on sales of a UNIX-language
   software product before the product was developed sufficiently to
   support revenue recognition under Generally Accepted Accounting
   Principles ("GAAP"). The complaint alleged that Covey and Skadra knew
   or were reckless in not knowing that the software did not function
   properly and that there were significant uncertainties about customer
   acceptance of that software. The complaint also alleged that, during
   SSA's fiscal years 1995 and 1996, SSA improperly recognized an
   additional $52 million in revenue from sales of UNIX software to
   middlemen, which sales were subject to material conditions or
   otherwise did not satisfy GAAP. According to the complaint, the
   conduct of Covey, Skadra, and SSA resulted in substantial losses to
   those public investors who purchased SSA stock during the period when
   the company's financial statements were misstated.

   The consent judgments enjoin Covey from violations of Section 17(a) of