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Gold/Mining/Energy : MODERN RECORDS INC. (MZR.V & MDNR.OTC) -- Ignore unavailable to you. Want to Upgrade?

To: Geoff who wrote (111)	5/31/1999 5:11:00 PM
From: Spiney	Read Replies (1) \| Respond to of 188

I'd say you're bang on Geoff. Modern Records says Reuters story inaccurate and false Modern Records Inc MZR Shares issued 19,680,000 May 28 close $1.00 Mon 31 May 99 News Release Mr. Johan Grandin reports The press release issued by Reuters on May 29, 1999, regarding a court judgment against Modern Records was inaccurate and false. There is no outstanding judgment against Modern Records. The arrest order referred to in the Reuters press release relates to a default judgment against the company's president, Randy Jackson and others The company is advised by Mr. Jackson that the suit is without merit and is being contested. Modern Records is not a party to the order. A court hearing to be held on June 1, 1999, will likely resolve the issue with respect to the arrest order. According to Mr. Jackson's attorney, Brian Oxman, a default judgment was entered years ago back in 1993 for $1.3-million against Jackson Communications, Inc., which was sued for $1.3-million by HVV Corp. Mr. Jackson was only a 6 per cent shareholder of Jackson Communication, Inc. HVV Corp, which is bankrupt, has been attempting for many years to attach that judgment to members of the Jackson family. According to Mr. Oxman, in a worst case scenario, Mr. Jackson could only be responsible for the 6 per cent of the total judgment, which would equal $78,000, and interest. Both Mr. Jackson and his attorney feel confident that Mr. Jackson will prevail on the matter when it is finally determined within a few weeks. According to Mr. Oxman, the suit for $1.3-million against Mr. Jackson lacked merit and will be reviewed on July 1, 1999, by a New Jersey court. Mr. Jackson was never served with the original lawsuit and did not have the opportunity to contest it. If Mr. Jackson is successful in setting aside the default judgment, all other orders will be invalidated. The company takes the position that the bankruptcy court does not have jurisdiction to order the transfer of shares of the company without obtaining other necessary regulatory approvals and that control of the company will not change until the register of shareholders is changed by order and other necessary regulatory consents. Mr. Jackson says: "I find the court order appalling, since Modern Records has nothing to do with this suit. My message to shareholders is that I am 100 per cent committed to make Modern Records one of the most successful independent labels. Corporately we are making tremendous headway with numerous projects and the production and growth of the company will continue regardless of this lawsuit."