U.S. Securities and Exchange Commission

Litigation Release No. 18391 / October 3, 2003

, Civ. Action No. 03CV - 1958 BTM (JFS) (Southern District of California)

   Today, the Securities and Exchange Commission filed suit in the United
   States District Court for the Southern District of California against
   B. Roland Frasier, III and Richard May, both of San Diego, California,
   for violations of the antifraud and securities registration provisions
   of the federal securities laws. Frasier and May had previously been
   associated with Zandria Corp., a defunct Internet company previously
   located in San Diego.

   In the suit, the Commission alleges that between October 1999 and
   November 2000, Frasier and May orchestrated a fraudulent scheme
   regarding the trading of Zandria stock on the Over-The-Counter
   bulletin board. The Commission alleges that Frasier and May obtained
   control over more than 90 percent of Zandria's free-trading stock
   through a series of sham transactions. The Commission further alleges
   that Frasier and May then paid a network of sales agents undisclosed
   commissions to tout Zandria stock to investors, while they sold
   Zandria stock, splitting the proceeds.

   The Commission has further agreed to a settlement with Frasier wherein
   he consents to a judgment permanently enjoining him from violating
   Section 10(b) of the Exchange Act and Rule 10b-5 thereunder; barring
   him from participating in any penny stock offering; ordering him to
   pay $280,000 disgorgement plus $65,898.43 in prejudgment interest; and
   ordering him to pay a $110,000 civil money penalty.

   The Complaint alleges that Frasier violated Section 10(b) of the
   Exchange Act and Rule 10b-5 thereunder and that May violated Sections
   5(a) and 5(c) of the Securities Act, Section 10(b) of the Exchange Act
   and Rule 10b-5 thereunder.

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Modified 10/06/2003