Scott K. Ginsburg, Mark J. Ginsburg and Jordan E. Ginsburg

LITIGATION RELEASE NO. 17455 / April 3, 2002

Securities and Exchange Commission v. Scott K. Ginsburg, Mark J. Ginsburg and Jordan E. Ginsburg, Civil Action No. 99-8694-CIV-RYSKAMP (S.D. Fla. West Palm Beach Div.)

TWO DEFENDANTS SETTLE SEC'S INSIDER TRADING CHARGES BY AGREEING TO PAY OVER $4.7 MILLION IN DISGORGEMENT AND PENALTIES

The Securities and Exchange Commission announced that on March 30, 2002, Judge Kenneth L. Ryskamp of the Southern District of Florida signed final judgments against Mark J. Ginsburg and Jordan E. Ginsburg requiring, among other things, payment of over $4.7 million in settlement of the Commission's charges of illegal insider trading against them.

In its complaint, filed on September 9, 1999, the SEC alleges that Mark Ginsburg's brother, then a CEO of a radio company, tipped Mark Ginsburg with information that EZ Communications, Inc. was for sale in July 1996 and that Mark Ginsburg purchased EZ stock and tipped their father, Jordan Ginsburg, who also purchased EZ stock prior to the announcement of the sale of EZ to American Radio Systems, Inc. The SEC's complaint also alleges that, less than a year later, in June 1997, his brother also tipped Mark Ginsburg with information about the sale of Katz Media Group, Inc. at a time when substantial steps had been taken by Chancellor Broadcasting and Evergreen Media towards a joint tender offer for the shares of Katz Media. According to the complaint, Mark Ginsburg purchased 150,000 shares of Katz Media the day after receiving the tip from his brother.

Without admitting or denying the SEC's allegations, Mark Ginsburg and Jordan Ginsburg settled the SEC's insider trading charges against them by consenting to the entry of final judgments, which (1) permanently enjoins Mark Ginsburg against violations of Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 ("Exchange Act") and Rules 10b-5 and 14e-3 thereunder, and requires him to pay disgorgement, prejudgment interest, and a civil money penalty pursuant to Section 21A of the Exchange Act in the total amount of $3,695,902.35; and (2) permanently enjoins Jordan Ginsburg against violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and requires him to pay disgorgement, prejudgment interest, and a civil money penalty pursuant to Section 21A of the Exchange Act in the total amount of $1,060,647.95.

The SEC is continuing to litigate against the remaining defendant in this case. The SEC acknowledges the valuable assistance provided by The American Stock Exchange in certain parts of the investigation of this matter. For further information about this case, please see Litigation Release No. 16275 (September 9, 1999).