Bio-Heal Laboratories, Inc., Defendant, MRMG Holdings, Inc., Kess Associates, Inc. ICOR, Inc., Bela Enterprises, LLC, and Gibson Island Enterprises, LLC, Relief Defendants

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19688 / May 4, 2006

SEC v. Bio-Heal Laboratories, Inc., Defendant, MRMG Holdings, Inc., Kess Associates, Inc. ICOR, Inc., Bela Enterprises, LLC, and Gibson Island Enterprises, LLC, Relief Defendants, No. 05-21116-CIV-Seitz (S.D. Fla.)

Final Judgment of Permanent Injunction and Other Relief Entered Against Defendant Bio-Heal Laboratories, Inc., and Default Final Judgments Entered Against Relief Defendants Icor, Inc., Bela Enterprises, LLC, and Gibson Island Enterprises, LLC

The Securities and Exchange Commission announced that on April 5, 2006, the United States District Court for the Southern District of Florida entered a Final Consent Judgment of Permanent Injunction and Other Relief against Defendant Bio-Heal Laboratories, Inc. Bio-Heal, without admitting or denying the allegations in the Complaint, consented to the entry of an injunction against future violations of Sections 5(a) and 5(c) of the Securities Act of 1933, Sections 10(b) and 13(a) of the Securities Exchange Act of 1934 and Rules 10b-5 and 13a-1 thereunder. In addition, the Final Judgment orders Bio-Heal to pay disgorgement of $600,000 and prejudgment interest of $18,135.

On April 20, 2006, the Court also entered a Default Final Judgment against Relief Defendant ICOR, Inc., and Default Final Judgments of Disgorgement and Other Relief against Relief Defendants Bela Enterprises, LLC, and Gibson Island Enterprises, LLC, respectively. The Default Judgment against ICOR orders it to disgorge 4 million shares of Bio-Heal Stock directly to Bio-Heal, which Bio-Heal will cancel upon receipt as agreed in its signed Consent. The Default Judgments against Bela and Gibson order them to pay, in cash, disgorgement of $1,420,890.29 plus prejudgment interest of $85,940.50 and $9,382,923.32 plus prejudgment interest of $518,495.74, respectively. Bela and Gibson are also ordered to disgorge 3,682,382 and 2,759,697 shares of Bio-Heal Stock directly to Bio-Heal, respectively. Upon receipt of the shares of stock, Bio-Heal will immediately cancel the shares of stock as agreed in its signed Consent.

Based on the Commission's motion, on April 3, 2006, the Court entered an Order of Dismissal without Prejudice as to Relief Defendants MRMG Holdings, Inc. and Kess Associates, Inc.

The Commission commenced this action by filing its Complaint on April 25, 2005 against Bio-Heal and the various Relief Defendants. The Complaint alleged that Bio-Heal improperly issued 12 million unrestricted shares of its stock to Relief Defendants MRMG, Kess, and ICOR. Two of the Relief Defendants then allegedly transferred their Bio-Heal shares to the other Relief Defendants, Bela and Gibson. The Complaint further alleged that Bela and Gibson generated millions in net profits by dumping Bio-Heal shares while the stock was being touted to investors through the internet.

For further information, see Litigation Release No. 19203 (April 27, 2005).