U.S. Securities and Exchange Commission
Washington, D.C.

Litigation Release No. 18347 / September 12, 2003

Inc., U.S. District Court for the Northern District of Illinois, Case No.
03C-1685

Federal Court Grants SEC Motion to Make Independent Examiners Report Public

   On September 11, 2003, the Honorable Judge James B. Zagel entered an
   Order (Order) pursuant to a motion by the Securities and Exchange
   Commission (Commission) providing that the Independent Examiners
   Report dated September 5, 2003 be made available to the public. The
   Order requires that the Independent Examiners report be included in
   the filings for this matter, and also requires that the report be
   posted on the official website for the United States District Court
   for the Northern District of Illinois () on September 15, 2003.

   The Court found that the Independent Examiners Report discussed
   Spiegels financial condition and identified material accounting
   irregularities. In the Order, Judge Zagel found that the information
   contained in the Independent Examiners September 5, 2003 Report is
   material to the investing public and that it is in the public interest
   to make the Independent Examiners Report available to the public.

   The Independent Examiners Report was completed as a result of Spiegels
   partial settlement with the Securities and Exhange Commission
   (Commission) in this matter. On March 7, 2003, the Commission filed a
   civil injunctive action alleging that Spiegel, Inc. (Spiegel) violated
   the federal securities laws by withholding material information from
   the public. Spiegel consented to the entry of a permanent injunction
   without admitting or denying the allegations in the Commissions
   complaint. The complaint alleged that Spiegel withheld the fact that
   on or about the beginning of 2002, its independent auditor had
   notified Spiegel that it may not be able to continue as a going
   concern. The complaint further alleged that Spiegels independent
   auditor later issued an audit report on or about January or February
   2002 which stated that the audit firm had substantial doubts about
   Spiegels ability to continue as a going concern.

   The complaint alleged that Spiegel decided not to make its required
   10-K and 10-Q filings to conceal the going concern issue from the
   public. Instead, the company filed a series of Forms NT (notices of
   late filing) indicating that Spiegel was not in a position to file
   because various lending agreements were not in place. According to the
   complaint, statements made by Spiegel executives confirm that Spiegel
   chose not to make its required filings to avoid disclosing the going