Governance: SEC takes action against defaulters

The companies concerned are:

Value America, Inc., VDS Enterprises, Inc.,Versent Corp., Viasource Communications, Inc.,Viatech Communications Group, Inc., and VideoFlicks.com, Inc.

Value America is a terminated Virginia corporation but its shares remain registered with the SEC. The SEC noted that the company has not filed any periodic reports since Q1 2000 when a USD27 million loss was reported. In August 2000, the company filed for protection under Chapter 11 of the US Bankruptcy Code and that case was terminated in 2003. As of 7 October, the SEC recorded that the company's ticker symbol, VUSAQ, was being traded on over-the-counter markets.

VDS Enterprises is a Florida corporation that has file no reports since May 2000.

Versent Group is an Ontario, Canada corporation. It has not filed any periodic reports since the end of 1999 which revealed a CDN18.4 million loss.

Viasource Communications is registered in New Jersey but operates from Fort Lauderdale, Florida and has equities registered with the SEC. Like Value America, it filed reports showing a loss, went into Chapter 11 protection, the case was terminated and its shares (VVVVQ) are traded over the counter. Its last filing was in Q3 2001 showing a loss of USD32.5 million.

Viatech Communications Group has not made any required filings since 1996. It is described as a "void Delaware corporation" operating from Baton Rouge, Florida and having securities registered with the SEC.

VideoFlicks.Com, Inc is an Ontario registered corporation operating out of Ontario. Its last filing was in 2000 showing a 1999 loss of just over CDN 1 million.

Formal hearings will take place - on dates to be appointed - for a determination as to whether the securities should be de-registered.