KM Systems announces settlement of lawsuit



  WALTHAM, Mass. -- February 2, 1995 -- KM Systems Inc. (formerly

Kurzweil Music Systems Inc., "KMS") announced today that, subject to final

court approval, it has settled its lawsuit with Young Chang Akki Co. Ltd. of

Korea and its wholly owned subsidiary, Young Chang of America Inc., relating

to KMS's claim for royalties due with respect to Young Chang products

incorporating technology which was included in the operating assets purchased

from KMS in 1990.

  As a result, KMS will receive a lump sum payment of $2,350,000 in settlement

claims of KMS for unpaid past or future royalties.  Since its 1990 sale of

operating assets to Young Chang and confirmation of KMS' Second Amended and

Restated Plan of Reorganization (as modified Aug. 21, 1991) (the "Plan"), KMS'

operations have consisted primarily of monitoring and collecting royalties

from Young Chang.

  KMS also announced that since the claims of creditors of KMS significantly

exceed KMS' assets, including the amount of the settlement, no amounts will be

paid to the holders of KMS common or preferred stock.  The net assets of KMS,

including amounts received by KMS as a result of the settlement, will be paid

to creditors in an interim and a final distribution in accordance with the

priorities set fourth in the Plan.



           CONTACT:  KM Systems Inc.

                     Robert Beal, 617/244-3120