SAO PAULO, Brazil (AP) _ Police said they arrested two men in connection with an attack in southeastern Brazil that left 10 people dead, most of them teen-agers.

The suspects were seized early Friday morning near Jacarei, a small city 50 miles northeast of Sao Paulo, police said.

Police believe the men were part of a suspected drug gang that stormed a house last week and shot to death the young people as they slept. The victims, all between 13 and 20 years old, were shot at close range.

Most of the victims had been squatting in the house for some time. One was a suspect in a pair of drug-related homicides earlier in the year, raising the strong possibility that the killing was a settling of scores between drug gangs, police said. Several of the victims had past arrests on drug charges.