Michael Milken pleaded innocent Friday to a 98-count federal indictment charging him with turning Drexel Burnham Lambert Inc., an investment banking house, into a racketeering enterprise. Milken's brother, Lowell, also pleaded not guilty. The arraignment of a third defendant, Bruce Newberg, was postponed until April 25 because Mr. Newberg was injured in a skiing accident.

The US District Court in lower Manhattan was packed with reporters, artists, lawyers, and Mr. Milken's friends. Outside the courtroom, Milken supporters wore white hats that said, ``Mike Milken we believe in you.''

Although Milken and his brother were released without bail, the government said it had made ``substantial progress'' in coming to terms with Milken's lawyers over the size of the bond to be posted. The government is asking for $1.85 billion in penalties from the three men and wants them to post a bond of $1 billion to avoid pre-trial restraints on their assets.

Outside the courtroom, one of Milken's lawyers, Arthur Liman, said Milken was holding up well. ``Michael's been a target for two and a half years of leaks and innuendoes, so he is used to accusations,'' Mr. Liman said.

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.