TCR_Public/950202.MBX



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