140 ARRESTED IN DRUG-SMUGGLING RING PROBE

Federal agents, in a sweeping coast-to-coast investigation, have smashed a
major drug-smuggling ring with ties to the Middle East, arresting more than
140 people linked to a nationwide methamphetamine syndicate.

The arrests culminated an undercover probe by the U.S. Drug Enforcement
Administration known as "Operation Mountain Express" and dismantled a drug
syndicate known as the "Commission," which supplied pseudoephedrine to
clandestine labs to turn into methamphetamine.

The investigation, announced yesterday by Attorney General Janet Reno and
DEA Administrator Donnie R. Marshall, began in December and seized $8
million in cash. Agents also confiscated 10 metric tons of pseudoephedrine
capable of producing 18,000 pounds of methamphetamine, 83 pounds of
finished methamphetamine, two pseudoephedrine extraction laboratories, one
methamphetamine laboratory and 136 pounds of processing chemicals.

"The operation should have a significant impact on methamphetamine
trafficking in the United States by limiting the availability of
pseudoephedrine and deterring others who might be considering the illicit
diversion of chemicals and pharmaceuticals," Miss Reno said.

Eight of those arrested, described as leaders of the Commission, routed
drug profits to the Middle East, according to the DEA, including Hassan
Zaghmot, taken into custody by agents in Denver. Agents confiscated from
Mr. Zaghmot's safe-deposit box the $650,000 that authorities said he
planned to use to flee the country.

Most of the arrests occurred during the course of the investigation,
although 40 suspected drug dealers have been taken into custody by agents
since Friday.

DEA agents raided 66 locations to close down 18 pseudoephedrine companies,
most of which were controlled by the Commission.

"This was the first time that U.S. law enforcement has been able to connect
a major group of pseudoephedrine distributors directly to U.S.-based,
Mexican-controlled methamphetamine laboratory operators," said Joe Keefe,
who heads the DEA's special operations division.

Commonly known as "meth," "speed," "crank" or "ice," methamphetamine —
initially produced by laboratories in California — is described by the DEA
as one of the most dangerous drugs on the street today. In the past several
years, its production and use have spread eastward, fueled by
drug-trafficking rings with headquarters in Mexico and backed financially
by other organizations in the acquisition of precursor chemicals.

A pound of methamphetamine usually sells for $14,000 to $15,000, although
DEA officials said the undercover operation would drive up the price of the
drug as dealers scramble to fill the void created by Operation Mountain
Express.

The DEA said the Commission set the price of pseudoephedrine, determined
how it would be transported, sent profits from its sale to Israel, Jordan,
Syria and Saudi Arabia and set up front companies to buy and ship
pseudoephedrine tablets to methamphetamine laboratories in southern California.

The undercover probe kicked into high gear in April when DEA agents seized
1,200 pounds of pseudoephedrine and several million dollars in cash,
arresting 14 couriers. The surprise arrests and seizures sparked an
emergency meeting of the Commission on April 18 in Kissimmee, Fla. — a
meeting investigators learned about through the use of informants,
electronic surveillance and undercover agents.

Investigators learned from informants who attended the meeting that the
Commission had agreed to use only white Americans as couriers to avoid
police suspicions, to change often their unwitting commercial courier
companies for fear some would develop law enforcement ties and to assemble
money and plans for quick escapes from this country if there were further
raids.

The DEA noted that pseudoephedrine tablets are legally imported for
over-the-counter cold and allergy remedies, costing about $450 for a pound
of tablets for legitimate use. But the drug dealers bought the tablets from
legitimate importers for $1,500 a pound for shipment through front
companies to the West Coast for sale to clandestine methamphetamine labs
for $4,000 a pound.

During the operation, agents also made arrests, seized property or sought
civil enforcement actions to close down pseudoephedrine companies in the
District, Richmond, New York, New Jersey, Pennsylvania, North Carolina,
Michigan, Illinois, Ohio, Missouri, Tennessee, Georgia, Florida, Louisiana,
Oklahoma, Colorado, Nevada, Washington, Oregon and California.