Uncommon Media Group, Inc., et al. and Lawrence Gallo

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19257 / June 8, 2005

SECURITIES AND EXCHANGE COMMISSION v. UNCOMMON MEDIA GROUP, INC., ET AL. AND LAWRENCE GALLO, Case No. 04-80272-CIV-Hurley/Hopkins (S.D. Fla., filed March 23, 2004)

JUDGMENT OF PERMANENT INJUNCTION AND OTHER RELIEF ENTERED AGAINST TWO DEFENDANTS IN UNCOMMON MEDIA GROUP, INC. LITIGATION

The Securities and Exchange Commission (SEC) announced that defendants Lawrence Gallo and Frederick Hornick, Jr., without admitting or denying the allegations of the SEC's complaint, filed March 23, 2004, consented to judgments of permanent injunction and other relief. The United States District Court for the Southern District of Florida entered those judgments on July 2, 2004, and June 8, 2004, respectively. In addition, the SEC voluntarily dismissed its action against 3rd Dimension, Inc. (3D) on August 4, 2004, without prejudice.

The SEC alleged in its complaint that Gallo and sales agents and promoters Timothy Rafferty and Hornick defrauded more than 200 investors out of at least $1.4 million, by fraudulently offering unregistered securities of Uncommon Media Group, Inc. and 3D, in violation of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder. The SEC also alleged that Hornick violated Section 15(a)(1) of the Exchange Act.

On July 13, 2004, the United States Attorney's Office for the Southern District of Florida filed an indictment charging Gallo with securities fraud, wire fraud, and mail fraud, and charging Gallo and Rafferty with conspiracy to commit securities fraud. On July 26, 2004, Gallo pled guilty to one count of conspiracy to commit mail and wire fraud. Rafferty's case is pending. The criminal charges are based on the same misconduct charged by the SEC in its civil action.