SECURITIES AND EXCHANGE COMMISSION
                                   Washington, D.C.

     Litigation Release No. 15435 / August 7, 1997

     SECURITIES AND EXCHANGE COMMISSION v. STEVEN H. SCHIFFER, JOANN R. SCHULZ,
     GARY S. KRAMER, JONATHAN SOLOW, FRANK J. CANNATA, and PETER G. MINTZ, 97
     Civ. 5853 (RO) (S.D.N.Y. August 7, 1997)

          Today, the Securities and Exchange Commission ("Commission") filed a
     Complaint in the United States District Court for the Southern District of
     New York, alleging market manipulation, insider trading, the making of
     false and misleading statements in Commission filings, and the sale of
     unregistered securities, all in violation of the federal securities laws. 
     All of these activities related to Phoenix Laser Systems, Inc. ("Phoenix"),
     a now-defunct company that was in the business of developing a laser
     workstation to perform eye surgery.  

          The defendants are:  Steven H. Schiffer (former chairman and chief
     executive officer of Phoenix), Joann R. Schulz (Phoenix's former president
     and chief operating officer), Gary S. Kramer (former investment relations
     representative of Phoenix), Jonathan Solow (formerly Phoenix's vice
     president, secretary, and director), Frank J. Cannata (a stockbroker and
     consultant to Phoenix), and Peter G. Mintz (a stockbroker and analyst, who
     covered Phoenix for his firm). 

          According to the Complaint, between May 1992 and August 1992,
     Schiffer, Kramer, Solow, Cannata, and Mintz, manipulated Phoenix's common
     stock to increase and/or stabilize its price in order to maximize the price
     of future stock sales.  Based on this activity, the Complaint alleges that
     these defendants violated the antifraud and antimanipulation provisions of
     the Exchange Act, Sections 9(a)(2) and 10(b) and Rule 10b-5 thereunder. 

          The Complaint also alleges that from May 1990 to April 1992, Schiffer
     and Schulz caused Phoenix to make materially false and misleading
     statements in Commission filings concerning the status of its Food and Drug
     Administration ("FDA") applications, the number of orders for Phoenix's
     product, and anticipated revenue from the sale of its product.  Based on
     this activity, the Complaint alleges that Schiffer and Schulz violated the
     antifraud and reporting provisions of the federal securities laws:  Section
     17(a) of the Securities Act, Sections 10(b) and 13(a) of the Exchange Act,
     and Exchange Act Rules 10b-5 and 13a-1.

          The Complaint further alleges that from January 1991 through July
     1993, while in possession of material, nonpublic information concerning the
     true status of the company's FDA applications, the number of orders that it
     had received, and realistic anticipated revenues, the same matters they
     caused the company to misrepresent in its filings, Schiffer sold
     approximately 1.5 

                                        - 2 -

                              ======END OF PAGE 1======





     million shares of Phoenix stock directly for approximately $4.2 million,
     and he sold approximately 2 million shares through the purported Regulation
     S transactions described below, for approximately $11 million, thereby
     avoiding losses of $15.2 million.  Similarly, between December 1991 and
     September 1993, while in possession of such material, nonpublic
     information, Schulz sold a total of 251,050 shares of Phoenix stock for
     approximately $626,000, thereby avoiding losses of $626,000.  Based on this
     activity, the Complaint alleges that Schiffer and Schulz violated the
     antifraud provisions, Section 17(a) of the Securities Act, Section 10(b) of
     the Exchange Act, and Rule 10b-5 thereunder.

          Finally, the Complaint alleges that, between September 1992 and July
     1993, Schiffer and Kramer violated the Securities Act of 1933 ("Securities
     Act") by selling approximately 2 million shares of unregistered Phoenix
     stock for approximately $11 million.  They disguised these sales as
     transactions that appeared to, but did not, comply with Regulation S, an
     exemption from the registration requirements of the Securities Act.  Based
     on this activity, the Complaint alleges that Schiffer and Kramer   violated
     the registration provisions, Sections 5(a) and 5(c) of the Securities Act. 

          In its Complaint, the Commission is seeking injunctive relief against
     each of the defendants.  The Complaint also requests that the Court order
     Schiffer, Schulz, Kramer, and Cannata to disgorge all profits that they
     made and/or losses that they avoided as the result of their violations of
     the federal securities laws, and that they pay prejudgment interest on
     those profits and losses avoided.  The Complaint further requests that all
     of the defendants pay civil monetary penalties.  Finally, the Complaint
     requests that the Court issue an order barring Schiffer from serving as an
     officer or director of a public company.

          The Commission acknowledges the assistance of the American Stock
     Exchange in this matter.