U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 18108 / April 25, 2003

   , Docket No. CV 03 374NM (FMOx) (USDC C.D. Cal.)

   On April 8, 2003, the Honorable Nora Manella, U.S. District Judge,
   Central District of California, issued final judgments of permanent
   injunction against LinkNet, Inc. (LinkNet) and LinkNet de America
   Latina, Ltd. (Latina). The two companies were enjoined from violating
   Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and
   Section 10(b) of the Securities Act of 1934 and Rule 10b-5 promulgated
   thereunder. LinkNet and Latina consented to the orders without
   admitting or denying the Commission's allegations.

   The Commission charged LinkNet, Latina, Allen R. Johnson, Joseph W.
   Isaac and Dale R. Carone with the fraudulent offer and sale of
   unregistered securities of LinkNet and Latina. The complaint alleges
   the defendants conducted these offerings from August 1999 through
   October 2000 and raised approximately $17 million from investors by
   selling the stock through a boiler room established by Johnson, Isaac
   and Carone in Encino, California.

   The complaint alleges that in making the offering the defendants
   failed to disclose the fact that at least $5.1 million, or thirty
   percent, of the offering proceeds were paid as commissions to the
   boiler room operations. It also alleges that the defendants made false
   representations that (1) a public offering of LinkNet stock was
   imminent; (2) LinkNet's stock would shortly be listed on NASDAQ; (3)
   investors could realize phenomenal returns on their investment in a
   short time; and (4) LinkNet and Latina had contracts for the sale of
   long-distance service in the United States and Mexico that would
   generate millions of dollars in revenue to the companies. The
   complaint also alleges that, while the offerings were ongoing, Isaac,
   Carone, and Johnson also sold their personal shares of LinkNet and
   Latina stock through the Encino boiler room and by other means.

   Although LinkNet and Latina have settled the Commission's action,
   litigation is still pending against Johnson, Isaac, and Carone.


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Modified 04/28/2003