Pubdate: Tue, 12 Aug 1997 .c The Associated Press NEW BRUNSWICK, N.J. (AP) The founders of a needle exchange program were convicted late Monday of violating one of the harshest laws in the nation banning syringe distribution. Municipal Court Judge Terrill Brenner was not swayed by the defendants' argument that handing out clean needles in exchange for used ones help stop the spread of AIDS without promoting drug use. Brenner fined Diana McCague and Thomas Scozzare $500 plus court costs and suspended their driver's licenses for six months, said Sarah Foster, the associate director of the New Brunswick needle exchange program. They faced a maximum penalty of $1,000 in fines and six months in jail. Brenner put the penalties on hold pending appeal. The case was closely watched by needle exchange advocates, who say New Jersey's antisyringe law is among the toughest in the nation because, unlike other states, it allows no exemptions. McCague and Scozzare were arrested in April 1996 after they gave clean needles and other drug paraphernalia including heroin cookers to an undercover officer posing as the relative of an addict. At trial, defense experts testified that the rate of HIV transmission through needles in New Jersey is among the highest in the country and said that needle exchange programs help reduce the spread of HIV by removing contaminated syringes from circulation. But Assistant Prosecutor Ronald Kercado said the motive behind the project is irrelevant because state law prohibits possession and distribution of needles. APNY081297 0018EDT