EX-OFFICERS PLEAD GUILTY

Four former Triad law enforcement officers accused last year of operating a
drug ring pleaded guilty Thursday to federal drug and conspiracy charges.
Appearing in U.S. Middle District Court in Greensboro, former Davidson
County deputies William Rankin Jr., 32, David Scott Woodall, 34, and
Douglas Edward Westmoreland, 49, and ex-Archdale police officer Chris
Shetley pleaded guilty to a variety of charges and face sentencing in June.

U.S. District Court Judge William L. Osteen Sr. said prosecutors and
defense attorneys must help him determine if the men's status as former law
enforcement officers should be considered in sentencing. "Does that make
the person worse than someone who's never tried to help the community, or
does it make them better?" Osteen asked.

Osteen also questioned if any favorable status should be offset by the fact
that the men have tarnished the image of law enforcement.

Rankin, Woodall and Westmoreland were fired from their vice-narcotics
division positions with the Davidson County Sheriff's Office shortly after
they were arrested following a joint investigation by the State Bureau of
Investigation and FBI in December. Shetley, an Archdale police patrol
sergeant and former vice officer, resigned as arresting officers led him
from the Archdale Police Department.

Two other men, Wyatt Nathan Kepley, 26, son of Davidson County Commissioner
Billy Joe Kepley, and Marco Aurelio Acosta-Soza also were charged as part
of the conspiracy and pleaded guilty to charges.

The plea arrangement means there will be no trial for the men and that
subsequent charges filed after their arrests likely will be dismissed. Each
defendant could be granted a recommendation for reduction in sentence.

Rankin was the only man to be released on bail. He was released on a
$50,000 bond Jan. 7 after a hearing in U.S. Middle District Court in
Winston-Salem and will remain free until he is sentenced at 9:30 a.m. June 26.

The other five men's sentencing is scheduled for 2 p.m. June 14.

Osteen told the men that parole has been abolished within the federal
prison system, so the sentences they receive will be the amount of time
they actually will serve.

The men face forfeitures related to items used in perpetrating the crimes
or bought with money obtained from committing crimes.

The six were charged with conspiracy to distribute cocaine hydrochloride,
marijuana, anabolic steroids and MDMA (Ecstasy) in December. They all had
earlier pleaded not guilty.

A later indictment added civil rights violation charges against Woodall,
Westmoreland and Rankin, based on allegations they performed an illegal
search of Kepley's apartment to obtain money and steroids. Additional
charges also were filed against the individuals: Shetley, one count of
extortion; Kepley, possession of a firearm by a felon; and Woodall,
carrying a firearm during the commission of a crime. The men pleaded not
guilty to the new charges in January.

The investigation began with the arrest of Thomasville police officer
Russell Earl McHenry Jr. Nov. 5, 2001.

Charged with state drug offenses, McHenry cooperated with investigators in
compiling evidence against the other men, according to court documents.

McHenry pleaded guilty to drug charges in January. His sentencing is set
for May 21.

According to court documents, the officers shared a common bond of anabolic
steroid use and used Kepley as a source for steroids. Kepley's arrest on
drug charges in California in April is what prompted McHenry to strike up a
friendship with the other men, since they had other sources for the drugs.
Rankin became McHenry's supplier, and soon they joined Woodall in
distributing the drug.

While Kepley was in California, McHenry and Woodall reportedly served a
false search warrant on Kepley's girlfriend and took $42,600 in cash and
16,000 vials of the steroid Premabolin from the couple's apartment.

On another occasion, Westmoreland, Rankin, and Woodall reportedly served a
bogus search warrant of the residence and handcuffed Kepley while they took
$147,000 in cash, steroids and a computer.

Court documents indicate that in January 2001, Westmoreland signed out 60
pounds of marijuana and 2 kilograms of cocaine from the Davidson County
Sheriff's Office evidence room under the pretense that it would be used for
an undercover drug deal. Woodall reportedly sold most of the drugs for profit.

Woodall and McHenry reportedly served another false search warrant to a
Rowan County residence and took more than three pounds of marijuana, $900
in cash and three handguns.

Documents indicate Westmoreland supplied McHenry with 40 pounds of
marijuana on one occasion, and Woodall was obtaining cocaine and marijuana
for resale from Acosta-Soza.

McHenry bought seven pounds of marijuana from Woodall in the East Davidson
High School parking lot last October, according to documents.