Hacker Makes 1st L.A. Federal Court Showing : Plea: Arraignment is postponed for Kevin Mitnick as government, attorneys work to settle case without a trial.

Computer hacker Kevin Mitnick made his first appearance Monday in federal court in Los Angeles, as both the government and Mitnick’s attorneys continued working privately to settle the case against him without a trial.

Mitnick, 32, whose dramatic capture in North Carolina in March ended a sophisticated electronic manhunt for the fugitive hacker, appeared in a conservative blue suit and tie for arraignment on a 1989 probation violation.

But U.S. Dist. Judge Mariana Pfaelzer postponed the matter until Oct. 2, to give both sides time to work out a plea agreement on the bulk of the case against the former North Hills man whose two-year flight made him a legend in the hacker underground.

Mitnick was on probation on an earlier hacking case when he fled California in November, 1992.

“If we can put this over until Oct. 2, we believe the entire matter can be resolved by then,” said John Yzurdiaga, who is representing Mitnick.

Although neither side was willing to talk about it, it is believed that they are trying to reach an agreement under which Mitnick would plead guilty to a number of charges in order to avoid going to trial in all the jurisdictions across the country where he may have committed electronic crimes during his flight.

He has already reached a settlement of minor cellular telephone fraud charges in North Carolina. Prosecutors in Seattle, Denver and San Francisco are also investigating his activities. Any settlement in Los Angeles would consolidate all those cases.

Federal authorities have accused Mitnick of stealing thousands of credit card numbers and electronically lifting software of computer firms, among other things. Key to any plea agreement is an estimation of the value of the material he is accused of taking, or penetrating.

Federal sentencing guidelines in fraud cases impose increasingly severe punishment all the way up to an $80-million loss. If the court were to assign the maximum loss to Mitnick’s activities, it appears that the sentence could range up to nine years. That would make it the stiffest sentence ever handed down in a hacking case.

Neither side was willing to talk about the negotiations.

“We’re looking for him to take responsibility for the entirety of his conduct,” said Assistant U.S. Atty. David Schindler.

Asked what sentence he was pressing for, Schindler refused to comment.

Richard Steingard, who also is representing Mitnick, refused to talk about the discussions as well. “We’re continuing to discuss the investigation that’s occurring here to see if it can be resolved,” he said.

While the government has labeled Mitnick a dangerous computer renegade, his attorneys contend that he is far different from the digital outlaw he has been labeled by the media. They argue that, as opposed to other, lesser known hackers, he has never tried to profit from his hacking.

When he was captured, he was living frugally in a small apartment in Raleigh, N.C.

Mitnick, who looked glum and somewhat dazed in court appearances after his capture in North Carolina, was clear-eyed in court Monday. It appeared he has gained some weight.

“He’s doing OK, considering the circumstances,” said Steingard.