United States Securities and Exchange Commission

Litigation Rel. No. 17768 / October 3, 2002

Commission Settles Fraud Charges Against Anamar Communications, Inc. and its
Former CEO, Brett Mallory

(United States District Court for the District of Massachusetts, C.A. No.
02-10471DPW, filed March 15, 2002)

   The Securities and Exchange Commission announced that, on September 3,
   2002, the Honorable Douglas P. Woodlock, United States District Judge
   for the District of Massachusetts, entered, by consent, final
   judgments against Anamar Communications, Inc., a Nevada corporation
   located in Boston, Massachusetts, and Brett R. Mallory, a resident of
   Boston, Massachusetts and Anamar's former chief executive officer. In
   its complaint, filed on March 15, 2002, the Commission alleged that
   Mallory defrauded at least 14 investors of approximately $130,000 by
   promising them that they could double their money within 90 days if
   they purchased Anamar stock at five cents per share. According to the
   complaint, Mallory fraudulently induced investments in Anamar by,
   among other things, misrepresenting to potential investors that (i)
   Verizon Communications, Inc., had agreed to purchase Anamar stock at
   ten cents per share; (ii) investing in Anamar was essentially
   risk-free because, even if the Verizon deal fell through, Verizon had
   agreed to pay an "opt-out" fee that would allow investors to sell
   their shares back to Anamar; (iii) Anamar was pursuing other lucrative
   deals that could potentially cause Anamar's stock price to increase
   one hundredfold, and (iv) Mallory had scheduled a meeting with Bill
   Gates of Microsoft.

   On April 24, 2002, the United States Attorney's Office filed a
   criminal complaint against Mallory in connection with the scheme
   described in the Commission's complaint. Mallory pled guilty to two
   counts of mail fraud on May 28, 2002. On September 5, 2002, Mallory
   was sentenced in the criminal case to a prison term of 12 months
   followed by three years of supervised release, fined $200, and ordered
   to make restitution in the amount of $130,500.

   Without admitting or denying the Commission's allegations against
   them, Anamar and Mallory consented to the entry of final judgments
   permanently enjoining them from future violations of Section 17(a) of
   the Securities Act of 1933 and Section 10(b) of the Securities and
   Exchange Act of 1934 and Rule 10b-5 thereunder. The judgment also
   holds Anamar and Mallory jointly and severally liable for disgorgement
   and pre-judgement interest totalling $136,917, but waives payment of
   that amount and does not impose civil penalties against them based on
   the sworn representations in their statements of financial condition