SECURITIES AND EXCHANGE COMMISSION



          LITIGATION RELEASE NO. 16024 / January 13, 1999

          SECURITIES AND EXCHANGE COMMISSION V. PAUL J. MONTLE, LS CAPITAL
          CORPORATION, PAUL V. CULOTTA, CAROL C. MARTINO, CMA NOEL, LTD.,
          MARIO J. IACOVIELLO, ILAN ARBEL, AND EUROPE AMERICAN CAPITAL
          CORPORATION, CIVIL ACTION NO. 98 Civ. 3446 (Pollack, J.)


               The Securities and Exchange Commission announced today the
          filing on January 5, 1998, a final judgment of permanent
          injunction by consent against defendant LS Capital Corporation
          ("Lone Star") in the United States District Court for the
          Southern District of New York.  According to the Commission's
          Complaint, filed on May 14, 1998, Lone Star's registration
          statement and amendments, which were declared effective on May 3,
          1993, failed to disclose the sale of a twelve percent ownership
          interest in the company prior to the effective date of the
          registration statement and falsely reported $904,000 in advances
          from its parent company when in fact $500,000 of that sum
          represented the proceeds of these stock sales.


               Without admitting or denying the allegations in the
          Complaint, Lone Star consented to the entry of a final judgment
          of permanent injunction against future violations of Section
          17(a) of the Securities Act of 1933, and Section 10(b) of the
          Securities Exchange Act of 1934 and Rule 10b-5 thereunder.