Dec. 9, 1999

NEWARK, N.J. (AP) -- A computer programmer admitted today he created and distributed the "Melissa" virus that he acknowledged caused millions of dollars of damage by disrupting e-mail systems worldwide.

David L. Smith pleaded guilty to a state charge of computer theft and later to a federal charge of sending a damaging computer program. In the federal plea, both sides agreed the damage was greater than $80 million.

Shocked by extent of damage

The virus, believed named after a topless dancer Smith knew when he lived in Florida, wreaked havoc at the end of March. However, authorities said today they could not confirm the origin of the virus' name.

"I did not expect or anticipate the amount of damage that took place," Smith read from a statement after questions from his attorney, Edward F. Borden Jr. Smith said he had believed any damage would be minor.

Smith, 31, is believed to be one of the first people ever prosecuted for creating a computer virus. He was arrested April 1 at his brother's home in nearby Eatontown in Monmouth County and freed on $100,000 bail the next day.
 

Bug struck thousands

Smith said he created the virus on computers in his Aberdeen apartment and used a stolen screen name, "Skyroket," and password to get into America Online. In the online service's alt.sex newsgroup, he posted a file called "list.zip," a listing of adult Web sites and passwords that contained the virus.

Asked by Borden if that was designed to entice people to download the file, Smith said, "Yes."

"Melissa" struck thousands of e-mail systems on March 26, disguised as an "important message" from a friend or colleague, and spread around the world like an electronic chain letter.
 

Designed to lower security settings

Melissa was designed to lower security settings on computers with Microsoft Word 97 and Microsoft Word 2000, making them vulnerable to other viruses so that any document created would be infected. It also was designed to send infected mail to the first 50 names in a computer user's address book through the Microsoft Outlook e-mail program.

Under his plea bargain, Smith faces five to 10 years on the state charge and up to five years on the federal charge. Sentencing for the state charge was tentatively set for Feb. 18.
 

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