February 26, 2004

PRESS RELEASE

FORMER CHIEF EXECUTIVE OFFICER
OF DIGITAL CONSULTING, INC.
CHARGED WITH CONSPIRACY AND TAX EVASION

Boston, MA... A Lynnfield man was charged today by a federal Grand Jury with conspiracy and tax evasion for spearheading a scheme in which he diverted millions of unreported income generated by his company, Digital Consulting, Inc., to an off-shore account in Bermuda to avoid paying taxes.

United States Attorney Michael J. Sullivan and Joseph A. Galasso, Special Agent in Charge of the U.S. Internal Revenue Service, Criminal Investigation, announced today that GEORGE SCHUSSEL, age 63, primary residence of 5 Kimberly Terrace, Lynnfield, Massachusetts, and other residences in Meredith, New Hampshire and Key West, Florida, was charged in an Indictment with conspiracy to defraud the United States and two counts of tax evasion.

The Indictment alleges that SCHUSSEL, the former Chief Executive Officer, who is still a principal shareholder of Andover based Digital Consulting, Inc. ("DCI"), conspired with others from 1988 through 1998, in an elaborate scheme to avoid paying taxes on DCI's profits. Additionally it is alleged that to prevent discovery of the scheme, SCHUSSEL obstructed an audit by the Internal Revenue Service ("IRS") in March of 1998. The Indictment also charges that SCHUSSEL filed false and fraudulent corporate and individual income tax returns for the calendar year 1995, by failing to report to the IRS accurate DCI revenues and income which he and his wife received.

DCI, established in 1982 by SCHUSSEL, is in the business of organizing and conducting computer based training seminars, trade shows, and conferences for businesses in the computer industry. DCI generates its revenue from ticket sales to participants who attend the seminars, trade shows, and other events, as well as from the contracting and selling of booth space to vendors involved in the shows. The Indictment alleges that from January 1988 through May 8, 1998, SCHUSSEL conspired to defraud the United States by diverting over $8 million of DCI's gross receipts to an account he controlled at the Bank of Bermuda Limited. It is alleged that after the diverted funds cleared through the bank in Bermuda, SCHUSSEL then transferred the money to an account he controlled at Fidelity Investments. The account in Bermuda was held in the name of Digital International Consulting, Ltd. ("DCIL"), a sham corporation allegedly set up in Bermuda by SCHUSSEL to facilitate the diversion of taxable income that he failed to report to the IRS. It is alleged that all of the money diverted to Bermuda was unreported by SCHUSSEL in DCI's corporate tax returns. It is alleged that SCHUSSEL diverted over $8.5 million of the company's revenues to Bermuda during the course of the scheme.

It is alleged that the diversion of DCI profits to Bermuda ended in 1995, when SCHUSSEL wanted to sell the company and realized that he could not disclose the true value of the company and its ability to generate substantial income, without potential discovery of the tax evasion scheme.

In the fall of 1997, the IRS commenced an audit of DCI's 1995 corporate tax return. The Indictment alleges that during the course of this audit, SCHUSSEL, along with others, caused false representations to be made to the revenue agent conducting the audit. Specifically, the auditor was lead to believe that all of the income generated by DCI in 1995 had been deposited at Northmark Bank. When questions arose during the audit relating to certain checks that were identified as payments to DCI, the revenue agent was falsely told that those payments were made pursuant to a business contract that DCI maintained with DCIL for services rendered. In fact, as the Indictment alleges, DCIL provided no services to DCI and the contract fraudulently created to give the false impression that DCI and DCIL were engaged in legitimate business dealings. Based on the false representations that were made to the revenue agent, it is alleged that the audit was obstructed.

If convicted, SCHUSSEL faces up to 5 years' imprisonment, to be followed by 3 years of supervised release, and a $250,000 fine on each count.

In related cases, Ronald Gomes, age 61, of 1 Rose Glen Drive, Andover, Massachusetts, the former President and partial owner of DCI, pleaded guilty and is awaiting sentencing on charges of tax evasion for failing to report to the IRS, income that he received from revenues that were generated by DCI and diverted to the Bank of Bermuda in order to evade the payment of federal income taxes. Diane Reed, age 53, of 641 Main Street, West Boxford, Massachusetts, the former controller of DCI has also been charged with tax evasion for failing to report certain bonuses and other monies that she received from SCHUSSEL, and which she failed to report on her personal income tax returns. Reed is scheduled to plead guilty to those charges on March 15, 2004.

The case was investigated by the U.S. Internal Revenue Service, Criminal Investigation and it is being prosecuted by Assistant U.S. Attorney Carmen M. Ortiz of Sullivan's Economic Crimes Unit.

Press Contact: Samantha Martin, (617) 748-3139