UNITED STATES SECURITIES AND EXCHANGE COMMISSION
    Washington, D.C.



  LITIGATION RELEASE NO.  15820 / JULY 24, 1998

  SECURITIES AND EXCHANGE COMMISSION V. FIRST NATIONAL ENTERTAINMENT
  CORP., MILTON J. VERRET, RICKY D. BUSBY, MICHAEL D. SWINGLER, RICHARD C.
  MAESTRE, AUBURN R. BUSBY, AND MICHAEL B. BYRD, Civil Action No. A
  95CV371 (AA) (W.D. Tex., Austin Division)


  The Securities and Exchange Commission announced today that on June 24,
  1998, the United States District Court for the Western District of
  Texas, Austin Division, entered a final judgment of permanent injunction
  and other relief against defendants Milton J. Verret and Ricky D. Busby
  for violations of Sections 17(a) of the Securities Act of 1933, and
  Sections 10(b), 13(a) and 13(d) of the Securities Exchange Act of 1934,
  and Rules 10b-5, 13a-1, 13a-11, 13a-13, 13d-2 and 12b-20 thereunder.
  Verret and Busby consented to the entry of the judgment without
  admitting or denying the Commission's allegations.

  The Commission alleged that between the fall of 1992 and June 1993,
  Verret and Busby, members of the management of defendant First National
  Entertainment Corp. ("FNAT"), participated in issuing a series of false
  and misleading statements to the public in various press releases and
  newsletters that materially inflated the projected revenues for a
  feature-length animated film called "Happily Ever After."  When the film
  was released, FNAT's revenues from the film fell far short of these
  projections.   According to the Commission's complaint, First National
  stock, which had traded at a high of over $9 in April 1993, fell to an
  average of approximately $0.28 a share in the first five months of 1995.

  The Commission sought disgorgement of illegal insider trading proceeds
  from Verret and Busby, who sold stock prior to release of the movie
  while allegedly in possession of material non-public information
  concerning more realistic revenue projections for the film, avoiding
  more than $4 million in losses.   Verret also allegedly failed to make
  the required disclosures to the Commissions about his sales.   The
  Commission further alleged that Verret and Busby participated in making
  a series of false statements in periodic filings with the Commission and
  other public statements which overstated the financing that First
  National had obtained to release the film.

  The Court's judgment enjoins Verret and Busby from further violations of
  the antifraud and reporting provisions, orders disgorgement of trading
  profits, and payment of prejudgment interest.   The Court determined not
  to impose a civil penalty and not to require payment of disgorgement and
  prejudgment interest based on Verret's and Busby's demonstrated
  inability to pay.   The judgment also permanently prohibits Verret and
  Busby from acting as an officer or director of any public company.

  The Commission continues to prosecute its claims against the remaining
  defendants in this action, Michael B. Byrd and Richard C. Maestre.   A
  trial date has been set for March 1, 1999.  The Court previously entered
  final judgments of permanent injunction and other relief against
  defendant FNAT on July 5, 1995, and against defendants Auburn R. Busby
  and Michael D. Swingler on May 9, 1996.   On February 26, 1996, the
  Commission instituted administrative proceedings in a related matter,
  making findings and imposing remedial sanctions against respondents John
  R. Manion and Continental Capital & Equity Corp.