For Immediate Release:

October 12, 1998

Contact:
James Kantorowicz (612) 441-3440

Commissioner To Investigate Corrupt Securities Bureaucrat

Elk River, MN (October 12, 1998) — SolarAttic, Inc. announced today that it had received a letter from David B. Gruenes, Minnesota Commissioner Of Commerce. He states: "I have asked Deputy Commissioner Patrick Nelson to investigate..." The letter is a response to a SolarAttic request for a full-scale investigation of law violations by the Department's Securities Division personnel. This announcement follows an inquiry last week from a regional investment magazine which indicated they are reviewing registrations filed in Minnesota and why it has become so difficult for small companies.

Minnesota Securities Law 80A.25 Subp. 4 states: "All rules and forms of the commissioner shall be published." In March, SolarAttic filed a registration statement in Minnesota for its SCOR Offering. However, Mr. Robert Rivera of the Securities Division has imposed several illegal requirements. I.E. "The [prospectus] language should show that all affiliated transactions will be ratified by a majority of independent disinterested board of directors." Mr. Rivera would not respond when asked to define what this statement meant. Nor would he provide the statute or rule that gives the Securities Division its authority to change the composition of a corporation's board of directors. It is highly doubtful that any small company could comply with such a demand. As a result, it is now unlikely that SolarAttic's SCOR Offering will become available to non-accredited, or the majority of, investors in Minnesota.

Ed Palmer, SolarAttic's CEO, said: "The law requires all rules and forms to be published so we can comply with them. There are large expenses associated with public stock offerings. When state agencies run amok and violate the very laws and rules they are charged with enforcing, it creates an expensive and impossible compliance environment for small companies. This is complicated by the fact the Attorney General's Office actually defends the Commerce Department's activities. Attorney General Skip Humphrey was notified on 12/1/95 of similar illegal and corrupt activities. SolarAttic now wonders why these types of activities still exist in Minnesota's Securities Division."

Additional information can be obtained by contacting James Kantorowicz at (612) 441-3440 or on the Internet [http://www.solarattic.com/mndpo.htm].

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