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NEW YORK, Oct 21, 2003 (BUSINESS WIRE) --

Universal Express, Inc. (OTCBB:USXP) announces CEO Richard Altomare is in Washington DC on the eve of a meeting convened by the SEC to address naked short selling. Altomare is lobbying members of Congress suggesting positive solutions to the naked short selling issue.

Universal Express, one of thousands of companies that are victims of naked short selling, describes it as the electronic churning downward of shares of developing OTCBB companies by broker dealers and market makers who never intend to or fail to cover short sales. USXP contends that this practice amounts to counterfeiting stock and is separate and distinct from legitimate short selling.

The SEC outlawed most naked shorts in 1936 and because of recent pressures plans to consider a new Regulation SHO on Wednesday, October 22, at its 10 a.m. meeting. The new Regulation SHO is expected to require short sellers in all equity securities to locate securities to borrow before selling short, and add further requirements to address 'naked'short selling.

Richard Altomare recommends the following actions be endorsed by Congress and the SEC:

-- The SEC immediately enforce all existing laws pertaining to shorting in the 1933 and 1934 Securities -- Anyone outside the U.S. requesting access to U.S. Securities Markets must agree to comply in full with U.S. securities and market laws, rules and regulations. -- Rules prohibiting Sale of Unregistered Securities must be rigorously enforced. Naked shorting is such a violation. -- Any short sale must be done only after an 'Affirmative Determination'is made regarding the ability of the trader to borrow the shares sold short for delivery within 3 days. -- All trades must settle and clear within three trading days from trade date. -- Use of whip calls, kiting, electronic counterfeiting and other such manipulations be subject to racketeering laws. -- Shares may only be shorted on a zero or zero plus tick, except for registered market makers and recognized arbitrage traders for their own accounts only and not for client accounts. -- DTCC must maintain the 'identity type'of accounts for shares transferred to its custody. Shares held in Cash, Excess Margin, ERISA and similar accounts not be lent under any circumstance. Already an existing rule, it is being ignored. -- Real penalties be imposed including interest charges and sanctions for any trades left unsettled after 3 days. A 10-day fail be immediately treated as a broken trade. -- Broker-dealers, clearing firms and clients shown to be engaged in attempts to circumvent the above guidelines be formally sanctioned once, and lose their licenses for a second offense.
'Naked short selling is economic terrorism. Universal Express and many other developing public companies are daily victims. We have been relentless in our pursuit of the naked short sellers. A jury of American citizens has awarded USXP punitive damages as a result of naked short sellers manipulating our stock, yet it continues for us and for many others. I have publicly called upon our shareholders to contact their Congressional representatives asking for the end to illegal naked short selling. I have written members of Congress and am personally meeting with them this week. I am most willing to work with my fellow Chief Executive Officers of developing and established companies to assist the SEC in their deliberations. I am here today pursuing this agenda and very hopeful the new leadership will consider regulatory reform,'stated Mr. Altomare.