Motion for pre-petition claims rescheduled to February 10



  WAYNE, N.J. -- Jan. 31, 1995 -- The Grand Union Company

announced today that its motion before the U.S. Bankruptcy Court for the

District of Delaware for authority to pay pre-petition claims of certain trade

creditors has been rescheduled for hearing on February 10.

  The hearing had originally been scheduled for February 2.  The continuance

of the hearing is supported by representatives of Grand Union's major trade

creditors in order to provide an opportunity to continue discussions designed

to resolve the motion without litigation.



    CONTACT:  The Grand Union Company

              Donald C. Vaillancourt, Corporate Vice President

              201/890-6100

Kendall Square Research delisted from NASDAQ SmallCap Market



  WALTHAM, Mass. -- Jan. 31, 1995 -- Kendall Square Research

Corp. (formerly NASDAQ SmallCap: KSRCC) today announced that its stock has

been delisted by NASDAQ from the SmallCap Market because the company no longer

satisfies NASD capital and surplus, and bid-price requirements.  
  Kendall Square has filed for protection under Chapter 11 of the U.S.

Bankruptcy Code in United States Bankruptcy Court, Eastern District for

Massachusetts.



           CONTACT:  Kendall Square Research

              Dennis Byron, 617/895-9400

MERRY-GO-ROUND ENTERPRISES UNVEILS THREE-YEAR BUSINESS PLAN AIMED AT

      RESTORING PROFITABILITY AND MARKET LEADERSHIP



  Plan focuses on customer-driven merchandising, operational "basics"

                  and leaner organizational design


  JOPPA, Md., Jan. 31, 1995 -- Merry-Go-Round Enterprises, Inc. (NYSE:

MGR) today unveiled its three-year business plan to Chapter 11 stakeholders

and the public.  The business plan focused on twenty key strategic and

operational initiatives aimed at restoring MGRE to a leadership role in youth

apparel retailing.  The plan also contained management's detailed financial

projections reflecting positive EBITDA expectations growing from $31 million

in fiscal year 1996 to $68 million in 1998.

  Thomas C. Shull, MGRE's Chairman and CEO, said, "After two months of

extensive research and analysis, we are excited to have a plan in place which

we believe will restore the company to profitability and allow us to emerge

from Chapter 11 as early as this summer."  Shull and James Kenney, president

and COO of MGRE, were hired in November to focus the company's turnaround

plans.  Both are partners in Meridian Ventures, a turnaround consulting firm,

and former R.H. Macy senior executives who played lead roles in developing

Macy's five-year business plan and plan of reorganization.  They were also

responsible for Macy's merger negotiations with Federated Department Stores.

  Shull elaborated further, "Subject to further review by our Chapter 11

stakeholders, we believe that this business plan is supportive of the terms of

reorganization which the stakeholders have proposed to MGRE's board.  As such,

the plan serves as a critical component in our efforts to file a timely and

workable plan of reorganization.

  "Our business plan and efforts to date have been twofold.  First, we have

outlined specific measures for eliminating unprofitable store locations and

sharply reducing overhead.  This will bring our cost- structure in line with a

smaller revenue base to eliminate short-term losses.  Second, we have

developed a new corporate strategy and mission consistent with today's

competitive realities in the specialty retail industry, as well as specific

priority directives for maximizing revenues and margins under this new

strategic approach."

  MGRE's new mission statement, as stated in the plan, calls for the company

to "Achieve profitable sales growth by being first to market in selected trend

fashions for the customer with a young attitude".

  "Our plan is based on leveraging our true strengths at MGRE.  We have a

loyal and growing core customer base in the fashion-forward teen and young

adult markets, a valuable, high cash flow real estate portfolio, extremely

strong chain store franchises and a vast untapped opportunity for capturing

additional sales in most of our locations," Shull added.  "We have now

completed the majority of our store and personnel cut-backs.  The challenge

now is really very simple:  we need to be more customer-driven in our

merchandising and marketing approach and we need to do the basic 'blocking and

tackling' of retail operations in order to achieve our potential."

  The company's plan detailed recent market research results which revealed

that while MGRE's stores are successful in converting roughly 50% of all store

visits to sales, its stores on average failed to convert 36% of customer

visits to purchases due to lack of merchandise availability and poor in-store

operations.  To improve the company's sales conversion rate, its business plan

outlines priority buying and selling directives which are geared towards

narrow and deep merchandise assortments, selective vendor partnering, stronger

commitments to key fashion trends, improved inventory management, and

effective customer- driven selling and service.

  "We have been leaving an extraordinary amount of sales on the table by

ignoring the basics of retailing and straying from the needs of our customers.

 This business plan is about remedying that situation," said Shull.

  Sales and marketing efforts will also be focused on meeting customer needs

with the implementation of customer-driven selling techniques and incentive

compensation, labor scheduling more closely linked to customer traffic

patterns and better in-store execution of merchandise plans.

  The company also outlined the numerous actions that the management has taken

to reduce operating costs and improve margins.  MGRE has now closed 416

underperforming stores and discontinued its Club International and Hollywood

store concepts (comprised of an additional 22 stores), substantially reduced

its workforce at its headquarters and in the field management ranks.  In

total, the company's workforce has been reduced to roughly 13,000 from a level

of 17,000 twelve months ago.

  "Most of our cutbacks will be completed by mid-February, but we will

continue to put pressure on streamlining operations and keeping this company

lean.  Our business plan directives also dictate that MGRE will continue to

develop a performance-based culture with specific cost reduction goals,

investment standards, and outsourcing policies.  While we still intend to

chart a path for future growth, we will look to do so in a disciplined

fashion, by harnessing the creative talents we have here in a

professionally-managed environment.  We think that this will allow us to grow

profitably and selectively to the billion dollar sales mark by the end of the

decade," Kenney explained.

  The company's business plan set forth revenue and earnings projections based

on implementation of the plan's directives.  These projections call for a 15%

reduction of revenues in its 1996 fiscal year to $662 million, primarily as a

result of store closures, with positive EBITDA (earnings before interest,

taxes, depreciation and amortization) of $31 million.  Projected fiscal year

1998 revenues are $727 million, with a projected EBITDA figure of $68 million.

  Shull concluded, "Clearly, our most important objective is to see that the

company is returned to profitability as quickly as possible, but we should

never lose sight of our obligation to provide stability and opportunity to the

thousands of loyal employees on the MGRE team. While many of the cuts we have

made have been difficult, we believe that implementation of this business plan

accomplishes both objectives."

  Merry-Go-Round Enterprises, Inc. is a specialty apparel chain selling

contemporary fashions for young men and women.  The company's four primary

chain concepts are Merry-Go-Round, Cignal, Chess King and Dejaiz/Attivo

stores.


                  MERRY-GO-ROUND ENTERPRISES, INC.

            Summary Financial Projections (Consolidated)

                            ($ Millions)


                          Actual  Estimated        Projections

                         FY 1994   FY 1995   FY 1996  FY 1997  FY 1998

  Total Sales              $960      $784      $662     $691     $727

   % Change (Total Sales)   9.4%    (18.3%)   (15.5%)    4.3%     5.2%

   % Change (Comp Sales)  (12.6%)   (17.7%)    10.5%     4.3%     5.2%

  Gross Margin             $180      $133      $150     $174     $195

   % of Sales              18.7%     17.0%     22.7%    25.2%    26.8%

  Operating Expenses       $231      $214      $144     $146     $153

   % of Sales              24.0%     27.3%     21.7%    21.2%    21.0%

  Inventory Turnover        2.4       2.9       3.2      3.5      3.5

  EBITDA                    $36      ($47)      $31      $52      $68

   % of Sales               3.8%     (6.0%)     4.7%     7.5%     9.3%

  Number of Stores        1,427     1,230       991      991      991    

***Note:  Merry-Go-Round Enterprises, Inc. cautions that no

           representations can be made as to the accuracy of the

           forecasted financial information or the ability to achieve

           the forecasted results.  Many of the assumptions upon which

           this forecasted financial information is based are subject

           to major uncertainties, some assumptions inevitably will

           not materialize, unanticipated events and circumstances may

           occur and, accordingly, the actual results achieved

           throughout the forecast period will vary from the

           forecasted results and the variations may be material.

           Although MGRE believes that the assumptions underlying the

           forecasted financial information for the forecast period,

           when considered on an overall basis, are reasonable in

           light of the current circumstances, no assurances can be

           given that the forecasted results will be realized.


  /CONTACT:  Michael W. Kempner or Michael T. Lennon of MWW/Strategic

Communications, Inc., Public Relations, 201-507-9500; or Isaac Kaufman of

Merry-Go-Round Enterprises, Inc., 410-538-1000/