PRESS RELEASE

Donald C. Smaltz, Independent Counsel In re Espy, announced:

   A District of Columbia grand jury today returned a Thirty-Nine Count Indictment against former Secretary of Agriculture Alphonso Michael Espy. Former Secretary Espy is charged with violating a variety of criminal statutes including violations of his duty to provide honest services to the American public by taking over $35,000 in things of value for the benefit of himself, his girlfriend and his family from prohibited sources over a fifteen month period. The Indictment charges Mr. Espy further betrayed the public's trust by misusing government assets when he caused the United States Department of Agriculture ("USDA") to lease a Jeep Cherokee vehicle for his personal use in Mississippi at a cost of $6,200.

   The Indictment alleges Secretary Espy accepted things of value from several prohibited sources, i.e., firms having business before USDA: Sun-Diamond Growers of California, a large California agricultural cooperative and its lobbyist; Tyson Foods, Inc., the world's largest processor of poultry and its Washington, D.C. lobbyist; Oglethorpe Power, a Georgia electrical power cooperative; Smith-Barney, an investment, securities banking and brokerage firm; The EOP Group, Inc., a Washington, D.C. political and business consulting company that represented organizations before USDA and employed Mr. Espy's girlfriend after he became Secretary of the USDA; Quaker Oats, a business that is regulated by USDA; and Fernbank Museum, a non-profit organization in Atlanta, Georgia that had a $71,000 contract with USDA.

   The Indictment charges that Mr. Espy's scheme to defraud and receive illegal gratuities involved the use of interstate mail and wire facilities and interstate travel, in violation of the mail and wire fraud statutes Title 18, United States Code, Sections 1341 and 1343 in Counts One through Twelve. Further, that after Mr. Espy's receipt of gratuities was reported by the media, he attempted to conceal his actions by: failing to disclose these things of value in his Public Financial Disclosure Reports and lying to USDA Office of Inspector General ("OIG"), the Federal Bureau of Investigation ("FBI") and the Executive Office of the President; and, tampering with a witness by directing another USDA employee to alter an official document that had been requested by OIG agents. If convicted, Mr. Espy could be sentenced to a maximum of up to five years in prison on each of Counts One through Twelve.

   Counts Thirteen through Twenty-Five charge Mr. Espy with soliciting, receiving and accepting gifts, gratuities and things of value from corporations and individuals seeking official action by, doing or seeking to do business with, and conducting activities regulated by the USDA in violation of Title 18, United States Code, Section 201(c)(1)(B). If convicted under these Counts, Mr. Espy could be sentenced to a maximum of up to two years in prison for each Count. Specifically, Mr. Espy is charged with illegally accepting the following things of value from the following prohibited sources:

   Counts Twenty-Six through Twenty-Eight charge Mr. Espy with violating the Federal Meat Inspection Act of 1907 by taking things of value from corporations regulated by Mr. Espy under the Federal Meat Inspection Act that were engaged in commerce. If convicted under these Counts, Mr. Espy faces a mandatory minimum of one year and a maximum of three years imprisonment for each Count. Specifically, Mr. Espy is charged with accepting a weekend private birthday party including airfare on a corporate aircraft, meals, lodging and entertainment provided by Tyson Foods, Inc., and valued at $2,044; a weekend trip to Dallas, Texas including airfare, limousines and skybox tickets to a NFL playoff game provided by Tyson Foods, Inc., and valued at $2,087; and tickets to an NBA championship game provided by Quaker Oats Company, and valued at $90.

   Counts Twenty-Nine through Thirty-Three charge Mr. Espy with traveling in interstate commerce to accept and receive the benefit of illegal gratuities in violation of Title 18, United States Code, Section 1952. If convicted under these Counts, Mr. Espy could be sentenced to a maximum of up to five years in prison for each Count. Specifically, Mr. Espy traveled to Russellville, Arkansas to attend a private birthday party hosted by Tyson Foods, Inc.; to Chicago, Illinois to attend a basketball playoff game with tickets he solicited from the Chairman of Quaker Oats; to New York, New York to attend the semi-finals and finals of the U.S. Open Tennis Tournament using tickets paid for by Sun-Diamond Growers of California; to Dallas, Texas to attend a professional football playoff game as the guest of Tyson Foods, Inc.; and to Atlanta, Georgia to attend the 1994 Super Bowl with tickets he solicited from the Fernbank Museum.

   Mr. Espy is charged in Counts Thirty-Four and Thirty-Six through Thirty-Nine with making various false statements in violation of Title 18, United States Code, Section 1001, including lying to USDA/OIG agents about his receipt of things of value from Tyson Foods, Inc. and causing them to receive a false document about those gifts; lying to FBI agents about from whom he received NBA playoff tickets and other things of value he received from prohibited sources; failing to disclose reportable gifts on his Personal Financial Disclosure Report Form for the years 1993 and 1994; and, for lying to the President's representatives about all of the gratuities that he had received from prohibited sources. If convicted under these Counts, he could be sentenced to a maximum of up to five years in prison for each Count.

   Count Thirty-Five charges Mr. Espy with witness tampering when he directed another USDA employee to alter a document that had been requested by the Office of Inspector General in violation of Title 18, United States Code, Sections 1512(b)(2)(A) and (B) and 1512(b)(3). If convicted under this Count, Mr. Espy could be sentenced to a maximum of up to ten years in prison.

   The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.