PRESS RELEASE

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

   A Federal Grand Jury sitting in New Orleans, Louisiana, has returned a superseding Indictment in the case entitled United States v. Henry William Espy, Jr., Alvarez T. Ferrouillet, Jr., Ferrouillet & Ferrouillet, and Municipal Healthcare Cooperative, Incorporated which was originally filed on July 9, 1996. The superseding Indictment names and charges as an additional defendant, John J. Hemmingson. During the time period of the Indictment, Mr. Hemmingson was Chairman of Crop Growers Corporation. Mr. Hemmingson is also a defendant in a case entitled United States v. Crop Growers Corporation, John J. Hemmingson, and Gary A. Black which was filed in federal court in the District of Columbia on May 22, 1996.

   In the superseding Indictment filed today, Mr. Hemmingson is named in Counts Seven, Nine, Ten and Fourteen. Count Seven alleges that Alvarez T. Ferrouillet, Jr. and John J. Hemmingson transported in interstate commerce a $20,000 check drawn on a Crop Growers Insurance, Inc. account, which was signed by John J. Hemmingson and made payable to Alzarez T. Ferrouillet, Jr. Attorney-at-Law, knowing the check had been taken by fraud, in violation of Title 18, United States Code, Section 2314 and Title 18, United States Code, Section 2.

   Alvarez T. Ferrouillet, Jr. and John J. Hemmingson are charged in Counts Nine, Ten and Fourteen with violating the federal money laundering statutes. They are charged in Counts Nine and Ten with causing the $20,000 Crop Growers Insurance fraudulently obtained check to be deposited in a groccery store bank account with the intent to conceal and disguise the source of the proceeds, in violation of Title 18, United States Code, Sections 1956(a)(1)(B)(i) and 1957 and Title 18, United States Code, Section 2. Count Fourteen charges Alvarez T. Ferrouillet, Jr. and John J. Hemmingson with a $21,000 wire transfer of criminally derived property from the Henry Espy for Congress account at the Omni Bank in New Orleans, Louisiana to the Henry Espy, Jr. and Alvarez T. Ferrouillet, Jr. account at First National Bank of Clarksdale in Clarksdale, Mississippi, in violation of Title 18, United States Code, Section 1957 and Title 18, United States Code, Section 2. The Indictment alleges that the $21,000 was used to pay down a $75,000 Henry Espy campaign loan from the First National Bank of Clarksdale Mississippi. The other counts in the original Indictment filed on July 9, 1996 have been incorporated and are unchanged in the Superseding Indictment.

   If convicted under Counts Seven, Ten and Fourteen, Mr. Hemmingson could be sentenced on each count to a maximum of 10 years' imprisonment and a fine of up to $250,000. If convicted under Count Nine Mr. Hemmingson could be sentenced to a maximum of 20 years in prison and a fine of up to $500,000.

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

The Independent Counsel's investigation is ongoing.