UNITED STATES SECURITIES AND EXCHANGE COMMISSION

                LITIGATION RELEASE NO.  15804  /  July 10, 1998

                SECURITIES AND EXCHANGE COMMISSION V. AMERICAN AUTOMATION, INC., KENDYLL
                R. HORTON, HAZEL A. HORTON AND MERLE B. GROSS, 3-98CV1596-D, USDC, ND/TX
                (Dallas Division)

                      The Commission announced today that Judge Fitzwater, United States
                District Judge for the Northern District of Texas, Dallas Division,
                granted the Commission's request for an emergency restraining order to
                halt the fraudulent money raising efforts of American Automation, Inc.,
                Kendyll R. Horton, Hazel A. Horton and Merle B. Gross of Irving, Texas.
                According to the Commission's complaint, the defendants raised at least
                $3 million from some 486 investors in several states through the
                fraudulent offer and sale of American Automation, Inc. stock.  The
                Hortons and Gross represented to investors that: American Automation
                would develop and market its automated insurance vending machines in
                high traffic areas; projected profits would be almost $100 million by
                the end of its third year of operation; and  the company would make a
                public offering which would significantly increase the value of the
                American Automation stock.  It appears that no automated vending
                machines have been sold and that American Automation's only source of
                revenue came from investor funds.  Additionally, according to the
                complaint, the defendants used investor funds to pay for their personal
                expenses, including cars, clothing and living expenses, and for business
                expenses unrelated to American Automation's operations.

                      The temporary restraining order entered on July 10, 1998, by Judge
                Fitzwater, enjoins American Automation, Kendyll R. Horton, Hazel A.
                Horton and Merle B. Gross from violating the federal securities laws,
                and includes an order freezing the assets of the defendants and relief
                defendants, MuscleWear, Inc., Angel World Insurance Group, Inc.,
                Direction Management Co., LLC, Lord & Kendyll Investments, Inc., and
                Family Light Co., LLC, companies believed to be controlled by one or
                more of the defendants.

                      In its complaint, the Commission alleges that defendants have
                violated Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and
                Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
                thereunder.  The Commission also seeks an order permanently enjoining
                American Automation, Kendyll R. Horton, Hazel A. Horton and Merle B.
                Gross, an order requiring disgorgement of all wrongfully obtained
                profits, with prejudgment interest , and civil penalties against each
                defendant, as well as disgorgement with prejudgment interest against the
                relief defendants.  In addition, the Commission seeks the appointment of
                a receiver to conserve assets for the benefit of investors.