PRESS RELEASE

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

   A federal Grand Jury sitting in New Orleans, Louisiana, has returned a 15 count criminal Indictment alleging the commission of various Federal criminal offenses by Henry William Espy, Jr., Alvarez T. Ferrouillet, Jr., Ferrouillet & Ferrouillet, a law firm, and Municipal Healthcare Cooperative, Incorporated. During the time period covered by the Indictment, Henry William Espy, Jr. was the Mayor of Clarksdale, Mississippi and the brother of Alphonso Michael Espy, then the Secretary of the United States Department of Agriculture. Henry William Espy, Jr. had been unsuccessful in his bid to obtain the Congressional seat vacated by his brother, Alphonso Michael Espy, when he was appointed Secretary of Agriculture by President Clinton in January 1993. Alvarez T. Ferrouillet, Jr. became the Campaign Chairman of the Henry Espy for Congress Committee following the Congressional election. Mr. Ferrouillet was a partner of Ferrouillet & Ferrouillet, a law firm in New Orleans, Louisiana. Mr. Ferrouillet was a director and 50% owner of Municipal Healthcare Cooperative, Incorporated which was engaged in the business of developing healthcare plans for municipalities and corporations.

   Count One of the Indictment charges all of the defendants, commencing April 1993, with conspiring to make material false statements for the purpose of influencing the actions of the First National Bank of Clarksdale, Mississippi, and to impair, obstruct, impede and defeat the lawful governmental functions and duties of the Federal Election Commission, in violation of Title 18, United States Code, Section 371. If convicted under Count One, the individual defendants could each receive a sentence of up to five years imprisonment and a $250,000 fine. The entity defendants could each be fined up to $500,000.

   Counts Two through Six charge all of the defendants with various false statements to the First National Bank of Clarksdale between April 28, 1993 and May 17, 1994, concerning a $75,000 loan to Henry Espy to retire his campaign debts which loan was guaranteed by Ferrouillet & Ferrouillet. The Indictment alleges the false statements were in violation of Title 18, United States Code, Section 1014 and Title 18, United States Code, Section 2. If convicted under Counts Two through Six, the individual defendants could each be sentenced to a maximum of 30 years in prison and a fine of up to $1 million per Count, while the entity defendants could be sentenced to pay a fine of up to $1 million dollars per Count.

   In Count Seven, the Indictment charges defendant Alvarez T. Ferrouillet, Jr. with transporting a $20,000 check taken by fraud in July 1994, in violation of Title 18, United States Code, Sections 2314 and Title 18, United States Code, Section 2. If convicted under Count Seven, the defendant Alvarez T. Ferrouillet, Jr. could be sentenced to a maximum of 10 years in prison and a fine of up to $250,000.

   Counts Eight through Thirteen further charge defendant Alvarez T. Ferrouillet, Jr. with money laundering between July 28 and August 19, 1994, in violation of Title 18, United States Code, Sections 1956(a)(1)(B)(i), (ii) and 1957 and Title 18, United States Code, Section 2. If convicted under Counts Eight through Twelve, defendant Alvarez T. Ferrouillet, Jr. could be sentenced to a maximum of 20 years in prison and a fine of up to $500,000. If convicted on Count Thirteen, the defendant Alvarez T. Ferrouillet, Jr. could be sentenced to a maximum of ten years imprisonment and a fine of up to $250,000.

   The Indictment further charges Alvarez T. Ferrouillet, Jr. in Counts Fourteen and Fifteen with making false statements to federal agents on March 27, 1995 and July 21, 1995, in violation of Title 18, United States Code, Section 1001 and Title 18, United States Code, Section 2. If convicted under these Counts, the defendant Alvarez T. Ferrouillet, Jr. could be sentenced to a maximum of five years imprisonment and a maximum fine of up to $250,000 for each Count.

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

The Independent Counsel's investigation is ongoing.