US. SECURITIES AND EXCHANGE COMMISSION

             Litigation Release No. 15833 / August  5, 1998

             Accounting and Auditing Enforcement
             Release No. 1063 / August 5, 1998

             SECURITIES AND EXCHANGE COMMISSION v. PAUL R. SAFRONCHIK,
             JEROME A. ADAMO, and DOUGLAS A. ROY, Civil Action No. SACV
             98-416-GLT (EEx) (C.D. Cal., S. Dist.):  UNITED STATES v.
             PABLO R. SAFRONCHIK, aka PAUL R. SAFRONCHIK, SA CR 96-141-
             GLT

             In a criminal prosecution by the U.S. Attorney in Los
             Angeles, on August 3, 1998, Judge Gary L. Taylor, United
             States District Court for the Central District of
             California, Southern Division, sentenced Paul R. Safronchik,
             CPA (Safronchik) to serve 37 months in federal prison and
             pay $300,000 in restitution.  From August 1993 through
             September 1995, Safronchik was the chief executive officer
             of Home Theater Products International, Inc. (HTPI). On
             December 9, 1996, Safronchik pleaded guilty to an
             information charging him with conspiracy to commit
             securities fraud, securities fraud and bank fraud for
             fraudulently inflating HTPI's accounts receivable.  United
             States v. Pablo Reuben Safronchik, aka Paul R. Safronchik,
             SA CR 96-141-GLT.  Safronchik is the last of three senior
             executives of HTPI to be sentenced.  Jerome A. Adamo, the
             former president of HTPI, pled guilty on February 4, 1998,
             to insider trading and was sentenced to serve six months
             home detention, two years probation and to pay a $50,000
             fine.  United States v. Jerome A. Adamo, SA CR 98-2.  On
             June 29, 1998, Judge Taylor sentenced Douglas A. Roy, HTPI's
             former controller, to serve six months home detention, three
             years probation, and pay $31,000 in restitution.  United
             States v. Douglas Andrew Roy, SA CR 97-61-GLT.

             In a related civil action by the Commission, on June 3,
             1998, Judge Taylor permanently enjoined Safronchik from
             future violations of Sections 5(a), 5(c) and 17(a) of the
             Securities Act of 1933, Sections 10(b), 13(a), 13(b)(2)(A),
             13(b)(2)(B) and 13(b)(5) of the Securities Exchange Act of
             1934 and Rules 10b-5, 12b-20, 13a-1, 13a-11, 13a-13, 13b2-1
             and 13b2-2, thereunder.  Safronchik consented, without
             admitting or denying the allegations in the Complaint, to a
             final judgment permanently enjoining him and ordering him to
             pay disgorgement but waiving such payment based upon his
             demonstrated inability to pay.  Safronchik was also barred
             from serving as an officer or director of any public
             company.  Securities and Exchange Commission v. Paul R.
             Safronchik, Jerome A. Adamo, and Douglas A. Roy, Civil
             Action No. SACV 98-416-GLT (EEx)]  (Lit. Rel. 15738; AAER
             l035).  In addition, on June 22, 1998, the Commission
             entered an Order pursuant to Rule 102(e) Of The Commission's
             Rules of Practice, denying Safronchik the privilege of
             appearing or practicing before the Commission as an
             accountant.  Safronchik consented to the Order without
             admitting or denying the Commission's findings.  In the
             Matter of Paul R. Safronchik, CPA (34-40106; AAER 1047; File
             No. 3-9628).