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

Litigation Release No. 17966 / February 4 , 2003

   Accounting and Auditing Enforcement Release No. 1711 / February 4,
   2003

   U.S. Securities and Exchange Commission v. Church Extension of the
   Church of God, Inc., United Management Services, Inc., James Perry
   Grubbs and Shearon Louis Jackson, U.S. District Court for the Southern
   District of Indiana, Cause No. IP 02-1118 C H/S (S.D. Indiana 2002).

   The U.S. Securities and Exchange Commission (Commission) announced
   that on January 31, 2003, the Honorable Judge David F. Hamilton of the
   United States District Court for the Southern District of Indiana
   entered an Order (A) Approving Plan for Noteholder Repayment by Church
   Extension of the Church of God, Inc. and United Management Services,
   Inc. (entity defendants) and (B) Granting Related Relief. The
   Commission commenced its enforcement case on July 22, 2002, alleging,
   among other things, that the defendants fraudulently raised
   approximately $85 million from the sale of investment notes to
   thousands of investors nationwide.

   On July 31, 2002, Judge Hamilton entered a Final Judgment and Order of
   Permanent Injunction and Other Equitable Relief (Final Judgment)
   against the entity defendants, enjoining them from future violations
   of the antifraud provisions of the federal securities laws and
   ordering disgorgement of approximately $81 million. The entity
   defendants consented to the entry of the Final Judgment without
   admitting or denying the allegations of the Commission's complaint.
   The litigation is currently pending against the individual defendants.

   The Plan for Noteholder Repayment provides for the continuation of the
   entity defendants so that they may orderly liquidate their assets over
   a five-year period in order to pay disgorgement to investors and other
   creditors. During this period, the Commission and Jeff J. Marwil, the
   court-appointed conservator in this matter, will aggressively monitor
   the liquidation process. In addition, a new company (Newco) will be
   formed and 10% of any funds or proceeds that Newco receives shall be
   transferred to the entity defendants for distribution to investors and
   other creditors.

   Other key provisions of the Plan for Noteholder Repayment include
     * Newco will execute a $10 million note payable to the entity
       defendants, which will mature at the end of the five-year period
       and will be paid to investors and other creditors;
     * Judge Hamilton empowered Mr. Marwil to bring cases against third