TCR_Public/950824.MBX

BANKRUPTCY CREDITORS' SERVICE, INC.






        F & M DISTRIBUTORS, INC. ANNOUNCES SECOND QUARTER RESULTS
   

      

            WARREN, Mich., Aug. 24, 1995-- F & M
Distributors, Inc.
,
        a debtor-in-possession, announced today operating results for the
        second quarter ended July 29, 1995.
   

      

            For the three months ended July 29, 1995, net sales were $119.0
        million at 88 store locations compared to $187.5 million in 129
        stores in the second quarter of the prior year.  Net losses for the
        three months were $15.7 million or ($1.63) per share, as compared to
        net losses of $8.4 million or ($.87) per share in the prior year.
        Comparable store sales declined 19% in the second quarter.
   

      

            For the six months ended July 29, 1995, net sales were $238.2
        million at 88 locations compared to $364.2 million in 129 locations
        in the same period last year.  The net loss for the six months was
        $31.7 million or ($3.30) per share, compared to a net loss of $12.1
        million or ($1.26) per share in the prior year.  Comparable store
        sales declined 18% year to date.
   

      

            Current year losses are not tax effected due to the Company's
        net operating loss carryforward position.  Operating losses, before
        interest, reorganization items and non-recurring charges, were $6.4
        million in the second quarter and $16.6 million for the six months
        year to date as compared to operating losses of $9.4 million and
        $11.4 million, respectively, in the comparable periods of the prior
        year.
   

      

            As a result of the losses incurred in the month of July 1995,
        the Company did not comply with certain financial covenants
        contained in its debtor-in-possession credit agreement.  The
        Company, its secured lenders, and the general creditors' committee
        have reached an agreement in principle to waive compliance with such
        financial covenants through October 20, 1995 and to amend the debtor-
        in-possession credit agreement to accommodate the Company's business
        operations.  The agreement in principle is subject to a definitive
        agreement and the approval of such agreement by September 14, 1995
        by the bankruptcy court having jurisdiction over the Company's
        chapter 11 case.  The trade lien previously granted in favor of
        vendors extending credit to the Company will continue in full force
        and effect during the waiver period.
   

      

            The Company, its secured lenders and the general creditors'
        committee have agreed that the Company should aggressively pursue
        alternative business strategies during the waiver period, including
        the marketing of the Company or part of the business operations to
        potential purchasers.
   

      

            F & M is liquidating five stores in outstate Michigan and one
        store location in Illinois.  The Company took a non-cash charge of
        $4.3 million in its second quarter operating results for reserves
        related to the closing of these stores.  The outstate Michigan
        stores do not complement the three major consumer markets served by
        F & M (Chicago, Detroit and Baltimore/Washington D.C.).  The
        Illinois store location to be closed is at its lease expiration.
        The Company is reviewing all of its operations, and will, in the
        near term, sell or liquidate up to an additional six store
        locations.  Reserves related to the closing of these six stores will
        be determined and reflected in the Company's third quarter operating
        results.
   

      

            The Company currently operates 82 F & M super drugstores located
        primarily in Chicago, Detroit and Baltimore/Washington D.C.  Its
        retail stores offer a wide selection of branded health and beauty
        aids, cosmetics and household consumables and supplies at everyday
        low prices.
   

      

            F & M is operating and managing its business as a debtor-in-
        possession under chapter 11 of the United States Bankruptcy Code.
        The chapter 11 reorganization case was commenced by the Company on
        December 5, 1994.
   

      

        /CONTACT:  Eileen Howard, or Media: Stacy Berns, both of
        Morgen-Walke Associates, 212-850-5600; or Laura Kendall, Sr. VP &
        Chief Financial Officer of F & M Distributors, Inc., 810-758-1400, ext. 251/
   

      



         

        Boca Research, Inc. announces termination of
        negotiations regarding the acquisition of Hayes Microcomputer
   

      

            BOCA RATON, Fla.--Aug. 24, 1995--Boca Research,
        Inc. (NASDAQ:BOCI) today announced that it has terminated
        negotiations with respect to the acquisition of HREF="chap11.hayes.html">Hayes Microcomputer Products, Inc. under the previously
announced letter of intent with
        Hayes.  In making the announcement, Boca Research indicated that Mr.
        Hayes' recent efforts to seek alternatives to the merger with Boca
        Research, his refusal to suspend these efforts during continued
        negotiations with Boca Research, and the course of negotiations over
        the past several days caused Boca Research to conclude that Mr.
        Hayes is not committed to the merger.
   

      

            Anthony F. Zalenski, president and chief executive officer of
        Boca Research, stated that, "Pursuing an acquisition of Hayes was
        consistent with our strategy to expand our business through
        developing strategic partnerships and acquiring complementary
        businesses.  We believed that the acquisition of Hayes would be a
        major step in furthering this strategy.  However, as we pursued due
        diligence and negotiations with Dennis Hayes, it became apparent to
        us that there were fundamental differences between Boca Research and
        Mr. Hayes relating to the management of the combined companies.  We
        determined that these differences would restrict Boca Research's
        management from taking the actions required to return Hayes to
        profitability and would jeopardize Boca's earnings growth."   
   

      

            Mr. Zalenski indicated that Boca Research will continue to
        monitor the status of the Hayes Chapter 11 Bankruptcy Proceeding.   
   

      

        CORPORATE INFORMATION
   

      

            Boca Research (NASDAQ:BOCI), founded in 1985, is a Florida
        corporation headquartered in Boca Raton.  The Company designs,
        manufactures, markets and supports quality, cost-effective data
        communications, multimedia and networking products to facilitate the
        transmission of information on personal computers and computer
        networks.  The Company provides hardware products augmented with
        software for use in the corporate, consumer and small office/home
        office marketplaces, and sells these products worldwide to wholesale
        distributors, OEMs and retailers.   
   

      

        CONTACT: Boca Research, Inc., Boca Raton
                 Mike Brewer, 407/997-8621 ext. 217  
                 (Vice President, Finance)