News Release

Released: April 5, 1995  Contact: Ron Messent  660-4800 or 1-800-373-6393

The British Columbia Securities Commission has imposed administrative penalties totaling $125,000 and prohibited Richard Newsom, Douglas Newsom and Donald Newsom from trading securities and from being a director or officer of any company for up to 25 years.

The penalties were announced today in a decision by the Commission following hearing into the matters of Atlantic Trust Management Group, a business owned by Richard Newsom.

The Commission noted that Donald and Douglas Newsom were not registered under the Securities Act as securities advisers, as required by the Act. Based on evidence at the October 1993 hearing, the Commission determined that Douglas and Donald Newsom, under the direction of their father, Richard Newsom, participated in a scheme (between March and May 1992) to manipulate trading in the shares of Riviera Explorations Inc. and Yellow Point Mining Corp., both listed on the Vancouver Stock Exchange.

In its decision, the Commission said it is in the public interest to make the following orders against the Newsoms:

Richard Newsom: 25-year prohibition from trading securities and from being a director or officer of any issuer, plus a $75,000 administrative penalty.

Douglas Newsom and Donald Newsom: Each a 20-year prohibition from trading securities and from being a director or officer of any issuer, plus a $25,000 administrative penalty.

Atlantic Trust Management Group is prohibited from trading securities for 25 years.

The Commission determined that the stock manipulation scheme was conducted by the provision of so-called "investor relation services" out of Atlantic's offices in White Rock, British Columbia and Ferndale, Washington, and manipulative trading of Riviera and Yellow Point shares through at least 13 brokerage accounts controlled by the Newsoms.

The Commission concluded that Atlantic's business of providing investor relations services to Yellow Point and Riviera was nothing more than "a typical boiler room where the Newsoms conducted a concentrated publicity campaign designed to hype these issuers and induce participation in the market they had artificially created."

The Commission found that Donald and Douglas Newsom, by delivering Atlantic's "investor relations services", were in the business of advising in securities, for which they were required to be, but were not, registered under the Securities Act. In its reasons, the Commission confirmed the importance of the registration requirement as a fundamental part of the regulatory scheme to protect investors from fraudulent, abusive and unfair practices.

The British Columbia Securities Commission is a provincial government agency responsible for regulating trading in securities and exchange contracts.

Copies of the Commission's decision (30 pages) may be obtained in person at 1100 - 865 Hornby Street, Vancouver, British Columbia.