News Release

NASD to Begin Administering D.H. Blair Restitution Fund for New York County District Attorney's Office

Washington, DC — The New York County District Attorney's Office today announced that NASD's Dispute Resolution division has begun administering its $21 million investor restitution fund program involving D.H. Blair & Co., Inc. Forms have been mailed to 13,000 claimants eligible to participate in the program.

The fund was established when D.H. Blair and four of its top managers pleaded guilty to felony charges in a prosecution by Manhattan District Attorney, Robert M. Morgenthau. The plea agreement required the five to pay $21 million to be used for restitution to victims of the criminal practices at the brokerage firm. A detailed account of the case can be found in the following links:

Former D.H. Blair customers eligible to participate in the fund are those who, according to their account records, held one or more of the 10 securities listed below, and suffered a net loss in those securities:

Advanced Aerodynamics & Structures Interactive Flight Technologies
Amerigon Premier Laser Systems
Conversion Technologies International Sepragen
Digital Video Systems Telepad
Food Court Entertainment Network Titan Pharmaceuticals

In January 2003, NASD administered a similar program for the North American Securities Administrators Association that distributed $5.7 million to 1,672 former D.H. Blair customers who were account holders at D.H. Blair between Jan 1, 1996, and June 30, 1998.

Participation in the restitution fund is voluntary, and eligible investors may participate in the Fund even if they have previously brought claims against, and recovered money from D.H. Blair. However, investors who have previously recovered money from D.H. Blair, or have current claims pending against D.H. Blair, will have their payments from the fund reduced by the amounts previously received. Additional information regarding the fund can be found at:

Investors who believe they may be eligible to participate in the fund, but who have not received a claim form by July 15, may inquire by sending an e-mail providing their name, address, phone number, and D.H. Blair account name and number.

NASD is the leading private-sector provider of financial regulatory services, dedicated to bringing integrity to the markets and confidence to investors through effective and efficient regulation and complementary compliance and technology-based services. NASD touches virtually every aspect of the securities business - from registering and educating all industry participants, to examining securities firms, enforcing both NASD rules and the federal securities laws, and administering the largest dispute resolution forum for investors and member firms. For more information, please visit our Web Site at