U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 18323 / September 4, 2003

   REED E. SLATKIN SENTENCED TO 14 YEARS FOR RUNNING A $600 MILLION PONZI
   SCHEME AND OBSTRUCTING JUSTICE

   , CR 02-313 (C.D. Cal.)

   Los Angeles, CA, September 4, 2003 - The U.S. Attorney for the Central
   District of California announced yesterday that Reed E. Slatkin was
   sentenced yesterday by United States District Judge Margaret M. Morrow
   to 14 years in prison after pleading guilty last year to a series of
   criminal charges related to a massive Ponzi scheme, including
   conspiracy to obstruct justice during an SEC enforcement
   investigation. In March 2002, Slatkin pleaded guilty to 15 felony
   charges, including mail and wire fraud, money laundering and
   conspiracy to obstruct justice, for fraudulently soliciting nearly
   $600 million from approximately 800 investors during a 15-year period.

   In his plea agreement, Slatkin admitted that, in order to obstruct the
   SEC's investigation and to conceal the fact that his investment
   program was a massive Ponzi scheme, he and other co-conspirators
   provided to the SEC false documents, including fabricated
   correspondence and account statements, and he lied to the SEC under
   oath about the success of his investments, the accuracy of account
   statements, and his intention not to accept additional investor funds.

   On May 11, 2001, the SEC obtained a temporary restraining order and
   asset freeze against Slatkin, a co-founder, former director and
   substantial shareholder of Earthlink, Inc., in federal district court
   in Los Angeles. The Commission alleged that Slatkin defrauded hundreds
   of clients through his unregistered investment advisory business
   located in Santa Barbara, California.

   On June 7, 2001, the U.S. District Court for the Central District of
   California entered a Judgment of Permanent Injunction against Reed E.
   Slatkin. The judgment enjoins Slatkin from future violations of the
   antifraud provisions of Section 17(a) of the Securities Act of 1933,
   Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
   thereunder, and Sections 206(1) and 206(2) of the Investment Advisers
   Act of 1940 and the investment adviser registration provisions of
   Section 203(a) of the Advisers Act. Slatkin, without admitting or
   denying the allegations in the complaint, consented to the entry of
   the injunction. Slatkin has also been barred by the Commission from
   associating with any investment adviser.

   Additional information can be found in Litigation Release No. (May 15,