FOR IMMEDIATE RELEASE
DATE: February 16, 2007
CONTACT: Chris Lee (702) 486-2440

Company Ordered to Freeze Investors Funds

Las Vegas, NV – Secretary of State Ross Miller announced this morning that investigators from the Securities Division, Office of the Secretary of State executed a criminal search warrant on a Las Vegas Valley financial institution in furtherance of an investigation relating to Southwest Exchange, Inc. Investigators also issued a Cease and Desist Order on Southwest Exchange, Inc., Donald McGhan, and other principles. All are ordered to cease and desist all unlicensed and fraudulent activity pertaining to investments maintained by Southwest Exchange, Inc.

This order was also issued to numerous financial institutions across the Las Vegas Valley, where it is believed that Southwest Exchange may have transferred large sums of money. Southwest Exchange, Inc. and Donald McGhan are further ordered to leave all securities and funds with broker-dealer where they are currently held to prevent the possible appropriation and disbursement of funds. This order is made pursuant to the authority granted by NRS 90.420, NRS 90.800 and NRS 90.820.

"This is a significant first step toward recovering and returning the substantial sums of money lost by investors," said Secretary of State Ross Miller. "By freezing the accounts maintained by Southwest Exchange, Inc., we are furthering our active investigation and are protecting investors from potential future losses."

Initial investigations reveal that Southwest Exchange, Inc maintained investments totaling over $100,000,000. The investigation is ongoing and the Office of the Secretary of State requests that any investors who believe they may have complaint, contact the office's Securities Division at 1-800-758-6440.

As in all criminal matters, the office maintains that the allegations are merely accusations and individuals are presumed to be innocent until proven guilty in a court of law.