Students caught sexting. Now what?

Two girls got caught sending nude pictures of themselves to their friends. But, they did it while in school. The question now is, "Now what?" "How should the school react?"

Should they:
1) Stiffen the rules and penalties for having cell phones in school?
2) Hold an assembly to help to educate the kids on why this is inappropriate, etc

Geez, I hope you didn't pick #1 as one district is doing.