PRESS RELEASE
December 9, 1997

     U.S. TREASURY REVERSES DECISION TO ALLOW 'NORTH
     KOREAN INTERNET APPEAL' TO OPEN AN AMERICAN BANK
     ACCOUNT TO COLLECT FUNDS FOR FAMINE VICTIMS


        The U.S. Treasury Department, which once blocked a bank account
in a Washington bank that had received donations to purchase food and
drugs for North Korean flood victims, reversed itself and now permits
such an account "to receive donations to finance the purchase of
(humanitarian) commodities."

        The bank account which had been blocked was held in the Crestar
Bank by the Internet Appeal for North Korean Flood Victims under the name
of North Korean Flood Appeal. Within days after the account was opened the
bank notified the account holders that Treasury had blocked it. The account
was subsequently allowed to be closed and the funds withdrawn provided they
would not be transferred to North Korea nor purchase commodities directly
by the organization.

        In a letter posted on December 2 and signed by Steven I. Pinter,
chief, licensing division of the Office of Foreign Assets Control,  which
was in response to the Internet Appeal's renewed inquiry a month ago,
Treasury ruled a bank account may now be opened and transactions are
allowed if the activities utilizing such funds meet the U.S. Commerce
Department's definition of "goods to meet basic human needs" and are
purchased in third countries. In previous rulings the department took a
stricter line, prohibiting many such accounts under the "Trading with the
Enemy" act.

        "As the Internet Appeal's donations are confined to the purchase of
rice, corn, drugs and medical supplies in third countries which are then
shipped to North Korea and distributed by me or members of my family,
these activities are in conformity with both the U.S. Treasury's and
Commerce Department's regulations and should encourage more Americans to
freely send their checks to the 'North Korean Flood Appeal' without any
concern they may be violating U.S. regulations," Bernard Krisher,
chairman of the Appeal noted.

        Krisher added: "This letter, reflecting a new, positive attitude
by the Treasury Department, reconfirms my faith in the ultimate sense of
fairness and justice which exists in the United States, as well as
respect for the humanitarian spirit that transcends even sometime hardened,
obstinate bureaucrats. Unfortunately you will find such a spirit in few
places in the world."

        Krisher is issuing a renewed appeal this week on the organization's
Home Page (www.northkorea.org) for donations to purchase emergency food,
drugs and medical equipment which he aims to distribute in North Korea
after the New Year.