U.S. SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 18331 / September 9, 2003

(SEC v. Benil Finance, Ltd., Civ. No. 03-61687 (USDC S.D. Florida))

   The Securities and Exchange Commission announced today that it has
   commenced a subpoena enforcement action against Benil Finance, Ltd.
   ("Benil"), an offshore entity, in the United States District Court for
   the Southern District of Florida. The Commission issued the subpoena
   on June 20, 2003, which, as extended, required Benil to produce
   documents by August 8, 2003.

   In its Application and supporting filings, the Commission alleges
   that, on April 1, 2003, it issued a Formal Order Directing Private
   Investigation and Designating Officers to Take Testimony. The Formal
   Order authorizes the staff to conduct an investigation into whether
   certain entities and individuals made false and misleading statements
   concerning Hienergy Technologies, Inc. ("Hienergy") including, but not
   limited to, the identity of its officers, directors, control persons
   and major shareholders. The Commission's Application and supporting
   filings allege that Benil has reported owning nearly 9% of the stock
   of Hienergy, a Delaware corporation with offices in Irvine,
   California. The Application and supporting filings further allege that
   the president of Benil is Jeannine Gurian, the mother of recidivist
   Philip Gurian, and its vice president is Jeannine Gurian's live-in
   boyfriend, Rheal Cote, who is Hienergy's former sole director and
   disclosed owner of 61% of Hienergy stock.

   Moreover, the Application and supporting filings allege that, on June
   20, 2003, the staff issued a subpoena to Benil requiring it to produce
   documents concerning, among other things (1) ownership of Hienergy
   stock; (2) communications with Hienergy investors and/or Philip
   Gurian, and (3) Benil's bank and brokerage records. The Commission
   asserts that these documents are relevant to its investigation.
   Finally, the Commission's Application and supporting filings further
   allege that Benil produced documents relating to two brokerage
   accounts in response to the subpoena, which purportedly were all of
   the documents in Jeannine Gurian's personal possession, but declined
   to produce documents relating to at least six other brokerage accounts
   and two bank accounts whose existence is known to the staff. According
   to the Application and supporting filings, Benil has informed the
   Commission that it has no obligation to produce documents not in
   Jeannine Gurian's personal possession. Pursuant to its Application,
   the Commission is seeking an Order directing Benil to show cause why
   it should not be ordered by the Court to produce documents pursuant to
   the Commission's subpoena and an Order requiring it to comply fully
   with the Commission's subpoena.